The Government’s planned changes to business rates could see Newmarket trainers facing devastating tax increases of up to 70 per cent over the next few years, the town’s MP has warned.
Nick Timothy, who together with Newbury’s Liberal Democrat MP Lee Dillon whose constituency includes racehorse training centre Lamborn and Conservative Kevin Hollinrake who represents the northern racing constituency of Thirsk and Malton, has written to Chancellor Rachel Reeves asking for an urgent meeting to put racing’s case.
The MPs’ concern is over the implications for the racing industry of the Treasury’s decision to exclude racing yards from the properties, which will qualify for the new retail, hospitality and leisure (RHL) lower business rates multiplier from April.
Nick Timothy, MP for West Suffolk. Picture: Parliament
Racing yards had been able to claim RHL relief at a rate of 40 per cent, but they will no longer qualify because the guidance states it will be restricted to properties or venues wholly or mainly used for in-person retail, hospitality, or leisure activity provided to visiting members of the public.
“This shift represents a significant withdrawal of support from an industry that contributes substantially to the rural economy, sustains tens of thousands of jobs and is a cornerstone of communities such as Newmarket, Lambourn, Thirsk and Malton which we represent,” said the MPs in their letter to the Chancellor.
“Until now most racing yards have been eligible for RHL relief and this has been applied consistently across major training centres. The new guidance closes that door entirely and at a moment when the sector is already under pressure from rising employment costs, higher energy bills and inflation in feed and transport prices.”
The MPs said the budget factsheet confirmed that sport and leisure facilities such as gyms, sports grounds and sports clubs were within the scope of RHL relief.
“There is nothing in the guidance preventing elite football or rugby clubs, whose training facilities are similarly closed to the public, from receiving relief,” said the letter.
“This creates a troubling inconsistency and gives the strong impression that horseracing is being singled out for disadvantage despite being one of the UK’s most economically significant sports, contributing over £4.1billion to the economy annually.”
Mr Timothy, who is vice-chairman of the Racing and Bloodstock all-party Parliamentary group, added: “This poses a mortal threat to local jobs and livelihoods. Despite our recent victory on the racing tax, Labour are still taxing British success stories out of existence. This decision must be reversed immediately.”
Urging the Chancellor to allow racing yards to access the new RHL multiplier, the MPs said: “We would welcome a meeting with you to ensure that this issue is properly understood and that a fair and consistent outcome can be reached.”