Rachel Reeves urged to reconsider excluding racing yards from business rates relief to save industry

Now, three MPs representing major training centres in Britain are calling on Ms Reeves to reconsider the decision.

Kevin Hollinrake, MP for Thirsk and Malton, Nick Timothy, MP for West Suffolk, and Lee Dillon, MP for Newbury, say the removal of the RHL relief will result in a 23 per cent increase in the amount of tax the average yard will pay in the 2026-27 financial year and a 70 per cent increase by 2028-29 compared to what they would have paid on rates for the year ending April 1, 2026.

In a letter written to the Chancellor, the MPs said there is "no justification" for singling out yards as closed to the public when other training grounds, such as elite football or rugby, aren't similarly excluded. They add that without racehorse training yards, there is no horse racing, a sport which drew more than five million people to grounds last year.

In their letter, the MPs outline their “deep concern about the implications of your planned changes” with yards having benefited significantly from RHL relief.

They wrote: “This shift represents a significant withdrawal of support from an industry that contributes substantially to the rural economy, sustains tens of thousands of jobs, and is a cornerstone of communities such as Lambourn, Newmarket, and Thirsk and Malton, which we represent. The new guidance closes that door entirely and at a moment when the sector is already under pressure from rising employment costs, higher energy bills, and inflation in feed and transport prices.”

Racing yards were specifically cited as premises that would not be able to claim the RHL relief from April, as they are “not open to visiting members of the public”.

But the MPs argue yards are fundamental to the operation of public racing and there is an inconsistency in which premises have been permitted RHL relief.

“Many trainers are already warning that the associated cost rises from this change will make their businesses unsustainable and threaten jobs in rural communities," they added. "Given the scale of concern across the sector, we urge you to revisit the guidance as a matter of urgency and to allow these yards to access the new RHL multiplier. We would welcome a meeting with you to ensure that this issue is properly understood and that a fair and consistent outcome can be reached. We would also encourage you to meet with both the BHA and National Trainers Federation to discuss this matter in more detail.”

The plea on behalf of the horse racing industry comes at a time of widespread anger in the hospitality sector following the Chancellor's Autumn Budget.

It has led to job losses and business closures after an increase in tax, business rates, minimum wage and national insurance, on top of high energy bills and a reduction in footfall due to the cost of living.

Barbers and salon owners have recently followed more than 1,000 pubs that have already barred Labour MPs in protest.

Hairdressers across the country are now refusing to serve Labour MPs as part of a growing protest movement against the party's tax raids.

Stickers bearing the message "No Labour MPs" have appeared on salon windows and doors in recent weeks - just as they did on the country's watering holes earlier.

The Chancellor herself has been banned from her local pub, with landlords furious about surging business rates bills.

In response to the changes, the government said: "We're protecting pubs, restaurants and cafés with the Budget's £4.3billion support package. Due to post-Covid recovery in market values, the increase in rateable values for the pubs sector will be 30 per cent, which, combined with the loss of the temporary RHL relief, would lead to an increase in total bills paid by the sector of 45 per cent. However, due to our interventions, the sector’s total bill will only increase by 4 per cent next year."

It added the changes it had made meant most "typical independent pubs" were saving £4,800 a year.

A Labour source also said: "The Government is backing high street businesses across the country, including hairdressers and salons."

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