Tom Savill

The tax went up, and the operators absorbed it. Concerns about possible negative/alternative/future outcomes is, in the words even of industry lobbyists, speculation not backed up by clear data. This is precisely why last year the Treasury Committee said that Government decisions on tax must not “cave in to industry scaremongering”. My experience of industry lobbyists is that many of them tend to be, unfortunately, a rather self-assured group of people who are happy to be rude and dismissive of others while being frequently wrong in their own political analysis and market predictions. Perhaps a little self-reflection would be in order..

Some thoughts on British horseracing. This week the Government announced that it intends to reduce, through changes to primary legislation and planning laws, the number of shops on high streets which, in its view, add little social value to local communities. This will see a reduction in the number of vape shops and adult gaming centres – both of which are deeply unpopular features of the modern high street and which many people, myself included, would like to see less of. The Government’s announcement also included betting shops, which historically have tended to cluster in areas of social deprivation and which, as well as providing traditional sports betting services, also allow easy access to addictive electronic gaming machines. It is a fact that many MPs, including the Prime Minister, want to see a reduction in the number of EGMs on the high street. Another fact is that the Prime Minister recently talked about his support for high street premises which, in his view, add social value to local communities. He specifically mentioned pubs in this context and announced plans to reduce business rates on pubs by 20% in the next Budget. This morning he went further, by saying the he plans to look at business rates more broadly for high street businesses, promising support for SMEs and agreeing that “the cost of doing business is too high”. The direction of travel is pretty clear. Higher tax on social harm, lower tax on social good. Support for local communities and small businesses. With the high street as the fulcrum for this vision. Faced with these facts, where does that leave racing? I understand that much of racing’s business model has historically depended on betting shops, and that much of the betting shop business model now depends on EGMs. But I have to say that I am sometimes surprised by the rather defeatist attitude within racing and its meek acceptance that the future of this grand old sport should necessarily depend on an unhealthy relationship with the flashing lights and ching ching ching of harmful, unpopular slot machines. Surely it is better than that? Racing cannot change the overwhelming political and popular desire to see changes to the high street. It needs to accept political reality. Whether racing likes it or not, high street gambling premises are now in the Government’s sights. At the same time, if the number of gambling premises decline, I don’t think anyone in Government would want racing to become collateral damage. So for racing to thrive, and not just survive, it needs to wean itself off a dependent and unhealthy relationship, and be creative about its long-term sustainability and future. My colleague @tom_sav made a recommendation last year on one way of exploring different opportunities for revenue, based on a reworking of the levy and media rights. But other opportunities should also be looked, which can chime with the social and economic vision of this new government. If the Prime Minister has pledged business rates relief for pubs, recognising their social value, why should this not also be extended to racing? A rates relief for racecourses, on training yards and stud farms. What other types of tax relief unique to racing could also be applied – for example, on bloodstock or on yearlings, as we see in America? What other areas of agricultural and rural support exist which could be applied to racing? Who within racing is thinking of these alternative options, and making the case to Government? It makes no sense for racing to just wring its hands while the inevitable happens, lamenting the decline of high street gambling venues while not proposing a bold, alternative, creative model for its long-term future. Racing has some great allies in Government, including Sally Jameson. The Treasury recognised the importance of the sport in last year’s Budget. These are strong foundations. Rather than defeatism, it should build on these foundations and make its case for a more sustainable future than the crisis management that we have seen in recent years. Be bold!

Last week I resigned from an evaluation panel looking at the DCMS Gambling Act Review. Selected parts of my resignation note were leaked to the Sun newspaper and have since been covered by various news outlets. Because of this, it no longer makes sense to keep the resignation note private — so I am making it available in full.