UK government launches levy consultation
DCMS will use 10-week consultation to listen to industry views on future of horse racing levy citing "urgent" need for reform
The UK government yesterday launched a ten-week consultation into the future of the horseracing levy as sports minister Helen Grant described the current system as being in urgent need of reform.
The racing levy, which was established in 1961 in order to help fund improvements to the sport of horseracing and veterinary research, is collected from UK bookmaker profits derived from the sport with amounts set by the Bookmakers’ Committee.
Earlier this year, the government announced it would widen the levy so that offshore digital operators would also be required to contribute to the fund, however, the government is pushing for greater reform to ensure the levy remains fit for purpose in the longer term.
The consultation will ask stakeholders for views on two options “ to reform the existing framework or replace it altogether with a new statutory framework. To continue in the long-term with the current levy is not an option while scrapping the levy without any replacement has also been ruled out.
“The levy is a fine idea that helps maintain the health of the sport but it is not working as well as it should,” Grant said.
“It urgently needs to reflect the modern reality of horseracing and betting and the consultation will help us determine how best to bring it up-to-date,” she added.
Last month the opposition Labour Party said it would look at ways in which it could extend the horseracing levy into other sports, however, the Conservative and Liberal Democrat coalition government has dismissed such a move.
“There are no plans to extend the levy to other sports,” Grant said.