Horserace Betting Levy Board and Horse Welfare

(Limited Text - Ministerial Extracts only)

Wednesday 6th December 2023 Westminster Hall

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stuart Andrew)]

It is a pleasure to serve under your chairmanship again this morning, Ms Fovargue.

I thank my right hon. Friend the Member for Camborne and Redruth (George Eustice) for securing this important and timely debate, and I appreciate the support that he gives not only to horse welfare but to animal welfare in general. As he mentioned, the charity Retraining for Racehorses is in his constituency, and he has been in touch with it about the HBLB. I am also aware of the vital work that that charity does in supporting and retraining former racehorses, which go on to “second careers” in areas such as polo, eventing and supporting equine therapy programmes for humans.

The Government acknowledge the significant contribution that racing makes to our economy. As has been rightly mentioned, it plays a central role in the livelihoods of many people in rural communities. The employment that it supports at racecourses, training yards and breeding operations, and across related sectors, reflects a powerful industry that is respected at home and abroad. It is one that I am keen to understand further through the visit to a training yard that I will make next week.

The Government recognise that British racing is a substantial asset in this country, and we remain committed to supporting it. Horseracing is the second biggest sport in the UK in terms of attendance, and according to the British Horseracing Authority racing is worth over £4 billion to our economy, in direct, indirect and associated expenditure. The public’s love of racing is shown by the number of people who attend flagship race meetings, with more than 200,000 people attending Cheltenham over its four days. On my visit to Newmarket this week, and in discussions that I have had with both the Jockey Club and the Arena Racing Company, I have seen at first hand how important racing is. British horseracing and breeding enjoys a reputation as a global leader and is promoted worldwide as part of our GREAT campaign.

My right hon. Friend talked about the importance of the levy. The horserace betting levy has evolved in step with the betting industry since it was introduced in the 1960s, as he mentioned. The statutory purpose of the levy is to support the improvement of breeds of horses, the advancement or encouragement of veterinary science or veterinary education, and the improvement of horseracing. The Horserace Betting Levy Board’s expenditure covers those three statutory purposes, all of which support horse welfare to some extent. That is evident in the goals set out in the board’s three-year business plan, one of which is to drive high-quality care and support for horses involved in racing. The board is now looking to set multi-year allocations of spend in this area.

In total, the Horserace Betting Levy Board spends around £3.5 million annually on horse-related areas, such as science and educational research, and on a number of horse welfare projects. Over the last 20 years, Great British Racing has invested over £47 million in veterinary research and education, with funding invested by the HBLB and more recently by the Racing Foundation.

The largest proportion of the levy is used to support prize money, as my right hon. Friend mentioned. I will say a bit more about prize money, because there is a misconception that it is about lining the pockets of a few millionaires—the owners of the horses. In fact, prize money is a means of injecting funds into the wider racing ecosystem, through the employment of trainers, jockeys, work riders and a whole host of people in more than 500 training yards who are involved in caring for horses and putting on race days.

The ability for prize money to cover the costs of training is a key consideration for people deciding to enter the industry, which in turn determines the number of horses entered for races. Maintaining the field size is an important factor in staging race days that are attractive to owners and racegoers. This generates prize money, both directly through racecourse income and indirectly through levy board support.

In 2017, the Government extended the levy to online bookmakers and fixed the rate at 10%, so that it no longer had to be negotiated each year. The 2017 reforms almost doubled the amount of levy collected, from £49 million to £95 million, and the levy continues to perform well. Even in 2020-21, with racing suspended for two months, and betting shops closed for much longer, it returned £82 million. The forecast for 2022-23 is £100 million. The principle of a statutory levy on betting activity on horseracing has never applied to other sports. The bespoke arrangements for horseracing reflect the unique and interdependent relationship between betting and racing, and are in line with international precedents in other horseracing jurisdictions.

My hon. Friend the Member for Tewkesbury (Mr Robertson) said we should transfer responsibility to DEFRA. Our Department works very closely with DEFRA, which leads on animal welfare—I will say a bit more about that later. However, DCMS oversees the whole of the sporting sector, of which horseracing is a part, and has a strong track record of stewardship of major sporting events. With a wide range of public bodies under the Department’s sponsorship, including other sporting bodies such as Sport England, DCMS is well placed to provide robust sponsorship to the Horserace Betting Levy Board and to ensure that it is meeting its statutory requirements.

The support the Department has provided to the sector can be seen in the support given during the pandemic, as my right hon. Friend the Member for Camborne and Redruth mentioned. A loan was provided and work was undertaken alongside other sporting bodies to help sport to resume behind closed doors, and horseracing was the first sport to do so. I hope all this will reassure my right hon. Friend that at DCMS we do have the best interests of horseracing at heart, and it is at the forefront of our thinking.

As my right hon. Friend mentioned, the British Horseracing Association—horseracing’s governing and regulatory body—is responsible for the safety of horseraces at British race courses. Like all domestic and captive animals, horses are afforded protection under the Animal Welfare Act 2006. Under this legislation, it is an offence to cause any unnecessary suffering to an animal, or for an owner or keeper to fail to provide for its welfare needs.

In February 2020, the Horse Welfare Board published “A life well lived”, its five-year strategic plan for the welfare of horses bred for racing. The strategy includes traceability for horses bred for the sport, a strong focus on safety and wellbeing, a more proactive approach to communications, and improved data collection. The BHA has identified 26 projects to drive continuous improvement in equine wellbeing, and £5.5 million has been invested by the Racing Foundation and the Horserace Betting Levy Board into that equine welfare work. That was certainly welcomed by the Government.

The BHA also works in collaboration with the RSPCA and World Horse Welfare to make racetracks as safe as possible. That was seen this year when, for example, the BHA revised its rules for the use of the whip. The new rules include a threshold on the number of times the whip may be used, as well as changes to the markers on all hurdles and fences from orange to white. I am pleased to see, as a consequence of British racing’s investment in safety and welfare, the number of horses that have suffered fatal injuries has decreased.

However, I recognise the points that my right hon. Friend mentioned. He knows that we are currently reviewing the horserace betting levy. The BHA has presented its case that there is a significant gap in its funding. It believes that that means it is unable to compete with jurisdictions such as Ireland and France, as my hon. Friend the Member for Tewkesbury mentioned, and it has submitted suggestions for how to close the gap. We are considering those proposals as we undertake our review, which is due by April. While I cannot pre-empt the outcome of that, I want to reassure my right hon. Friend the Member for Camborne and Redruth that a decision will be firmly based on the evidence.

[George Eustice]

I am delighted to hear that decisions will be based on the evidence in the usual way. Does my right hon. Friend recognise that this juncture, when he is in a position to arbitrate on what the levy should be and potentially to determine what the future business plan should look like, is a moment when he could really effect change? If he felt that I was being too generous to charities by saying they should have £12 million from the budget, maybe a few million pounds a year would be a start. I hope he might consider that when he engages in those negotiations.

[Stuart Andrew]

My right hon. Friend pre-empts what I was just about to say. He has raised some very important points, and, as I am also the Minister with responsibility for charities, I know how challenging the economic climate has been for them, in terms of raising funds and so on. However, we are in regular conversations, and I have regular meetings with the likes of the British Horseracing Authority, and I can assure him that I will definitely raise the issues that he has highlighted at my next meeting, because the welfare of horses that are no longer racing and the sustainability of the charities that he mentioned are very important.

My right hon. Friend alluded to section 25 in the legislation. I need to explore that further, but I give him my commitment that I understand the points he is making. I understand the challenges that those important charities face, and, recognising the current challenges across horseracing as a whole, I will see what I can do to highlight that important issue.

[Mr Robertson]

My right hon. Friend the Member for Camborne and Redruth (George Eustice) raised the issue of Retraining of Racehorses, but there are a number of smaller charities that the Minister is no doubt aware of, such as HEROS—Homing Ex-Racehorses Organisation Scheme—which is based near Lambourn and brings retired racehorses together with youngsters who have lost their way, to the benefit of both. It is an excellent charity. The Minister will be looking at the charities, and there are lots of smaller charities that could perhaps also benefit from a little more attention.

[Stuart Andrew]

I fear that this is going to become a bidding war for charities all over the country, but I get my hon. Friend’s point. My commitment to my right hon. Friend the Member for Camborne and Redruth and to hon. Members here, as a consequence of this debate, is that I will highlight the points that he has raised—the particular challenges that those welfare charities are facing—and give the body the opportunity to address those first, before I look at what other options may be available.

[Dr Hudson]

I am grateful to my right hon. Friend the Minister for giving way. He referred to how racing stopped during the pandemic for a period, but he will also be aware that it stopped for a few days in 2019 because of equine influenza. Does he agree that it is vital that some of the levy money goes back into veterinary science and equine infectious disease surveillance for the protection of the horses, so that the British horseracing industry can thrive?

[Stuart Andrew]

One of the key reasons that I went to Newmarket was not just to enjoy a day at the races, but to see for myself the investment being made in the welfare of those horses, and I must say that it was incredibly impressive. My hon. Friend is right; we need to maintain those standards, and he has just given me another question to raise when I meet with the body in the next couple of weeks. I thank right hon. and hon. Members for their contributions to this debate.

Question put and agreed to.