British racing has been spared from a tax rise on betting on the sport which it feared could lead to thousands of job losses.

In her Budget, Chancellor Rachel Reeves did not increase the rate paid by bookmakers on racing bets.

Reports of a proposed rise had led to British racing holding an unprecedented one-day strike in September.

But although the Treasury has not increased the 15% tax rate paid by bookmakers on racing, other gambling tax rises could have a knock-on effect for the sport.

Remote gaming duty, paid on online casino betting, will rise from 21 to 40% from April 2026.

General betting duty, paid on other forms of sports betting, will remain at 15% in betting shops – but from April 2027, will rise from 15 to 25% online.

Details of the Government’s plans were mistakenly released early by the Office for Budget Responsibility before Reeves’ statement in the House of Commons.

The measures are expected to generate £1.1bn from the gambling industry by 2031 and shares in major companies fell immediately after the announcement.

Before the Budget, bookmakers warned of betting shop closures if Reeves hiked taxes on gambling firms.

Each shop provides thousands of pounds in funding to racing through the levy and media rights payments.

Racing’s bosses say if bookmakers needed to cut costs, this could impact the sport through reduced sponsorship and promotion, worse odds and reduced bonuses for customers, and potentially turn people towards the black market.