The horse-racing industry in the UK is facing a significant financial challenge as it will be excluded from new business rate reliefs coming into effect in April 2026. This exclusion means racing yards, which currently benefit from a 40% rates relief, will see average cost increases of over £7,000 per yard, amounting to a 40% rise in business rates across the sector. The new relief system targets retail, hospitality, and leisure venues open to the public, leaving around 300 training yards and the broader horse-racing industry without support. This change, combined with rising employer costs and potential increases in gambling duties, threatens the viability of many smaller yards and rural operations, risking closures and damaging local economies.

The Treasury’s reform aims to make business rates fairer by lowering rates for smaller retail and leisure businesses while increasing charges on high-value commercial properties, including racing yards and betting shops. The betting sector, already under pressure, could face an additional £10 million annually in business rates, exacerbating concerns about shop closures and reduced funding for horse racing. Industry leaders and organizations like the National Trainers Federation and British Horseracing Authority are lobbying for clarity and support ahead of the upcoming Budget, emphasizing the sector’s economic and cultural importance, which supports over 85,000 jobs and contributes £4.1 billion annually to the UK economy.