What is the Horse Tax and why does it affect me?

If you are one of the 4.3 million people in the UK who enjoy horse riding every year.

Or one of the estimated 6 million spectators who watch horse racing events throughout the UK.

Or among the 270,000 individuals employed across the equine sector who contribute to the UK economy year upon year.

...then you are amongst just some of the people who will be affected by the Government’s Horse Tax proposals.

The Government’s Proposals

The Department for Environment, Food and Rural Affairs (Defra) has published plans to create a new semi-autonomous Government body which will be tasked with preventing and managing outbreaks of animal diseases. The new body will be funded in part by the taxpayer and in part by the livestock and horse sectors, imposing a yearly registration fee charged per animal – effectively bringing in a new tax on all horse owners.

The Government’s full proposal document on these plans can be viewed on the Defra website here

Why we need a rethink on these proposals:

Horses These proposals will place an unfair and arbitrary financial burden on the horse community and at the same time will create a new layer of complex, expensive and unnecessary bureaucracy. The proposals in their current form just don’t make a convincing case as what measurable benefits to horse owners and the wider equine community justify imposing a new tax.

The UK horse community encompasses a wide range of interests and activities, so for ease of reference we have included below information relating to three separate (though by no means mutually exclusive) interest areas.

Firstly, however, there are two broad reasons as to why the proposals in their current form are unworkable for the entire equine sector:

The proposals are based on arbitrary, inaccurate figures – they name a figure of 20 per cent as the horse sector’s share of the annual cost of disease control, without giving any explanation as to how this was arrived at, and with no regard to the public subsidy to the contributions the sector already makes – without significant subsidy from Government.

A new Government body would create an unneeded extra layer of cost and bureaucracy – it is estimated that an administrative cost of £2.3 million to set up and run the proposed Government body will be necessary to collect a total levy of just £4.5 million – not value for money for either the taxpayer nor the equine community.

Please find below separate and detailed information for:

Horse riders – leisure and competitive

Racehorse trainers, breeders and owners

Equine Veterinarians

Horse riders – leisure and competitive:

Stables Why a rethink is needed:

Create an extra layer of cost and bureaucracy – it is estimated that an administrative cost of £2.3 million to set up and run the proposed Government body will be necessary to collect a total levy of just £4.5 million. We need to rethink whether this is really value for money for both the horse riding community and the wider taxpayer.

The plans treat horses being ridden for leisure or competitive purposes in the same way as “farm livestock” animals such as sheep and pigs – without taking into account the huge differences between the horse and the livestock sectors – for example, the significant number of horses which are involved in activities that are entirely non-commercial, sporting or not-for-profit.

The plans would hit small horse owners hardest – around 65% of owners have just one horse, with a further 15% owning just two. Collecting a registration charge yearly from this 80% of single horse owners, therefore, means that the cost of collection outweighs the amount of tax raised, offering poor value for money to both the horse community and the taxpayer.

The proposals go against current Government policy on public health and equine sport – at a time when the Department for Health is trying to encourage more young people to engage in outdoor activities, and with the 2012 Olympics on the horizon (the horse industry receives some funding – although not comparable to livestock subsidies – from Government related to encouraging the development of equestrian sport), taxing the horse community seems counterproductive to these goals.

Racehorse trainers, breeders and owners

Racehorse trainers, breeders and owners Why a rethink is needed:

The proposals treat the livestock and horse racing sectors in the same way – Yet whilst the livestock industry receives £1 billion per year through the Common Agricultural Policy, as well as payments from Regional Development Grants, the horse sector receives no comparable funding.

The plans would place an unfair further burden a sector which already contributes to animal health – the horse racing industry contributes around £750,000 per year to central funding aimed at preventing and controlling infectious diseases.

Under these proposals Government policy on animal health would be separated from policy on animal welfare – when from a veterinary viewpoint the two are inextricably linked. Any separation would also go against the integration of animal health and welfare in Scotland, Wales and Northern Ireland.

Equine Veterinarians

Why a rethink is needed:

The proposals go against the integration of animal health and welfare in Scotland, Wales and Northern Ireland – animal health and welfare are inextricably related: we as veterinary surgeons are absolutely clear on this. The plans also lack clarity over the roles of the four Chief Veterinary Officers, potentially compromising the UK’s ability to respond effectively to major outbreaks of disease. Anything that causes confusion in decision making could have disastrous consequences for the rural economy.
A new system along these lines would potentially lead to delays in dealing with outbreaks of disease across the UK – the proposal to hand over responsibility for animal health to a separate public body puts at risk the clear structures and single line of command essential in the event of a major disease outbreak.
The plans are based on a lack of understanding of the nature of the equine sector – the proposals do not take into account some fundamental differences between animals which can be classed solely as “farm livestock” (such as sheep and pigs) and horses – ignoring the fact that a significant number of horses are involved in not-for-profit leisure and competitive activities. In addition, whilst the farm livestock receives a £1 billion per year subsidy through the Common Agricultural Policy, as well as payments from Regional Development Grants, the horse sector receives no comparable funding.

Time for a rethink – but what’s the alternative?

Horse Racing There are a number of alternatives which the Government could explore to achieve this goal more effectively and without placing an unfair burden on the equine sector.

Firstly, retaining responsibility for managing animal health within the remit of Defra –rather than creating a complex new Government body – would avoid an unnecessary separation of the Government’s policies on animal health and animal welfare and would constitute a more cost effective solution.

Secondly, insurance is well understood and utilised in the horse sector and could provide a much less complex solution to this problem. Such a solution could include third party liability, disease control cost and compensation, using established mechanisms coupled with Government capping and promotion to incentivise its uptake.

What you can do to help change this policy:

Step 1: Write to Your MP

Step 2: Sign the 10 Downing Street Petition

Step 3: Join our mailing list and receive regular news updates