In a Budget announcement that has created a clear divide within British sport, horse racing has secured a vital exemption from sweeping increases to gambling taxes, while community sports clubs face a fresh financial crisis.
Chancellor Rachel Reeves revealed on Wednesday 26 November 2025 that while taxes on remote gaming will surge to 40 per cent from April and remote sports betting will rise from 15 to 25 per cent in 2027, duty on horse racing wagers will be held at its current rate of 15 per cent.
A Welcome Reprieve for the Turf
The decision follows an intense lobbying campaign by the UK horse racing industry, which warned the Treasury that any tax increase would lead to widespread course closures and significant job losses.
Brant Dunshea, chief executive of the British Horseracing Authority, welcomed the outcome. "Today's welcome outcome demonstrates that the Chancellor has listened to our concerns and rightly recognised that racing is a unique national asset – culturally, socially and economically," he said.
Dunshea emphasised the sport's deep roots in British culture, stating it "binds our communities together in shared experience, it brings joy to millions. It puts the country on the world stage."
David Armstrong, chief executive of the Racecourse Association, echoed the sentiment, highlighting that "all stakeholders within our sport were united on the damage that would have been caused should a tax increase be levied." He expressed relief that the vital socio-economic importance of racecourses to communities across Great Britain had been acknowledged.
Grassroots Sport Sounds the Alarm
While the racing industry celebrates, a starkly different picture has emerged for community sports. Grassroots campaigners have warned that many clubs could be forced to close their doors due to changes to business rates and the government's failure to grant them a similar carve-out.
Lisa Wainwright, CEO of the Sport and Recreation Alliance, voiced profound disappointment. "We are disappointed that the Chancellor has not heeded our call for sport and recreation premises to be exempt from the RHL multiplier," she said.
Wainwright expressed deep concern that the decision "will add further cost to sport and recreation facilities at a time when margins are already tight." She also highlighted the "potential impact of new higher property valuations on bills for smaller grassroot sport and recreation clubs and facilities," stating unequivocally that higher bills threaten clubs' viability.
Broader Consequences for British Sport
The SRA had previously told City AM that these increasing financial burdens could have a devastating long-term impact, potentially reducing opportunities for young people at the community level. This, they argue, risks depriving Britain of its future sports stars by stifling talent at its source.
Meanwhile, both the BHA and RCA have pledged to work collaboratively with bookmakers, who had cautioned that the racing industry would feel the negative effects of any increase in betting taxes.
The 2025 Budget has therefore created a two-tier outcome for UK sport, safeguarding a historic industry with significant economic clout while leaving the foundational level of community sport to grapple with a precarious financial future.
