Horse-racing industry faces 10m blow from business rates overhaul

"The horse-racing industry is bracing for a £10 million rise in costs after being excluded from new business rate reliefs due to come into force next April - a move that coincides with fears of a fresh tax raid on betting in the upcoming Budget. According to research by Colliers, racing yards are among several categories that will lose access to the current 40 per cent rates relief, facing average increases of more than £7,000 per yard - equivalent to a 40 per cent rise in total business rate bills across the sector."

"The property consultancy estimates that around 300 training yards, covering about 90 per cent of the sector, currently benefit from the relief but will now be left out of the new system, which will apply only to venues "wholly or mainly" used for retail, hospitality, or leisure activities provided to the public. The National Trainers Federation and the British Horseracing Authority (BHA) have begun working together to alert members to the changes and lobby for clarity ahead of the November 26 Budget."

"John Webber, head of business rates at Colliers, warned that many trainers could struggle to absorb the extra burden: "Trainers work on small margins and employ many people on low wages. The rise in employer National Insurance contributions and the national minimum wage has already hit them hard. To add increased business rates on top could push some over the edge.""

Horse-racing training yards will lose access to a 40% business rates relief, producing an estimated £10 million sector-wide increase and average increases of more than £7,000 per yard. Around 300 training yards, covering about 90% of the sector, currently benefit but will be excluded because the new relief applies only to venues "wholly or mainly" used for retail, hospitality, or public leisure. The Treasury will fund lower multipliers for smaller high-street premises with rateable values under £500,000 by raising multipliers for other commercial properties from April 2026. Industry groups are lobbying ahead of the November 26 Budget.

Read at Business Matters