The government has said it expects to receive information on the progress of negotiations on levy reform by the end of the year, and that negotiations are expected to resume soon.

Culture Secretary Lisa Nandy told the House of Commons the government recognized the tax was vital to the financial viability of British racing.

However, she rejected Opposition claims the horse racing industry had been “left in the dark” following last month’s Budget.

Talks between racing and the Betting and Gaming Council over tax reform had been going on for several months and were reportedly close to an agreement, but they were disrupted when Rishi Sunak called this year’s general election.

During questions to ministers at the Department for Culture, Media and Sport on Thursday morning, Nick Timothy, MP for West Suffolk, a constituency including Newmarket, asked for an update on the progress of negotiations.

Nandy responded: “We believe the horse racing betting tax is vital to the financial viability of the sport and its thousands of fans.

“I can inform him that the Minister for Gambling (Baroness Twycross) recently met with representatives of horse racing and betting to encourage a voluntary agreement that fairly reflects the relationship between racing and betting.

“We expect an update from the British Horseracing Authority and the Betting and Gaming Council on progress by the end of the year.”

Shadow sports minister Louie French said on Thursday the horse racing industry had been “left in the dark” by the government following the budget.Credit: Edward Whitaker

A BHA spokesperson said the governing body agreed with Nandy on the status of any levy agreement that fairly reflected the relationship between sport and betting.

They added: “We will meet with the Betting and Gaming Council shortly to resume negotiations.”

Among the measures announced in last month’s Budget was a significant increase in the amount employers must pay in National Insurance contributions, with the rate increasing by 1.2 percentage points to 15 per cent and the threshold at which they start to contribute falling from £5,000 to £5,000. 9,100.

The BHA, National Trainers Federation and Racecourse Association have all said rising staff costs will have a significant impact on British racing’s business.

Later in Thursday’s debate, shadow sports minister Louie French said the horse racing industry had been “left in the dark” by the government following the budget, which he said could costing sport £16 million and the gambling industry up to £100 million.

He added: “Will the Secretary of State tell the House whether her department has assessed the impact of the increase in national security contributions on the industry? How many jobs will be lost? How many courses training and lessons will close? How “Many of the 500 independent bookmakers will close?”

In response, Nandy said the budget included measures to protect smaller businesses.

She added: “More than half of businesses will pay either less or the same as they do now. We will not take any lessons from the opposition on how to manage the economy, after 14 years, given the mess in which she left this country.”

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