The TBA is all too aware of the increasing cost pressures that the breeding industry is facing daily; inflation on its own would be enough, but successive governments have added considerably to the debit side of a P&L. Brexit, for example, hasn’t provided any upside but considerable downs as the exit from a Customs Union has increased both paperwork and the costs of transporting horses between the UK, Ireland and France, having previously relied upon the Tripartite agreement to facilitate horse movements.
That same Brexit decision has removed what was a strong buyer demand for some of the more accessibly-priced yearlings to European countries with developing racing industries – adding £1,500 – £2,000 just to get these horses out of the country makes the whole idea unsustainable and therefore it is not surprising that these are now bought elsewhere within the EU.
Our government have not made it any easier by introducing the National Insurance increase and the uplift in minimum wage. While the latter needed doing, it has presented additional challenges of businesses. It is difficult to listen to talk about economic growth as the way out of the UK’s problems but then see significant sums added to payroll, while extra legislation around employment will inevitably add to the cost base and will see less jobs being available and more benefits payable.
Furthermore, the changes to inheritance tax, which now includes agricultural land, is asking serious questions of those family-owned farm and horse-breeding businesses the length and breadth of the country. There are some encouraging signs around this subject at least as the TBA has engaged with the National Farmers’ Union and conducted direct interviews with some of those impacted. Strong representation has persuaded the Treasury that they should at least listen, and a meeting is being arranged.
The above is a very long way around of bringing your attention to a letter recently issued by the TBA to all breeders in respect of our plans around the aftercare of our thoroughbreds and yet another ask to put your hand in your pocket to contribute to the voluntary foal levy. Some explanation from me is appropriate.
Firstly, for the industry as a whole, a full solution to provide for the welfare and aftercare of all thoroughbreds we breed and race is non-negotiable – everyone can agree on that and once we do, it’s the same old question then of how this is structured and funded.
There is a plan and when delivered it will provide and pay for a solution that is fit for purpose. This is an all-industry initiative, with all major participants paying their corner, with increased contributions already being made and more formal arrangements to be fixed from 2026 onwards.
For the breeding sector, this is being carefully considered following the recent announcements made by the sales houses and online sales platforms of a matched mandatory levy placed on both vendors and purchasers, along with the increased contribution from owners, both of which will incorporate breeders.
More formalised plans are being developed to introduce a standardised levy for every foal born in Britain from 2026 onwards, with the distribution of funds generated being given careful consideration. Full transparency and accountability are essential to be certain that the industry is paying appropriately and that initiatives are having maximum impact. As such, assessing the structure and strategy to be implemented by Retraining of Racehorses (RoR) in close alignment with the Horse Welfare Board will be a priority for the TBA over the course of this year.
To reach this point, 2025 must be paid for and that will be achieved from the voluntary donations made by breeders during the foal registration process (an opt-in tick box).
As I have said before, failure to do something will inevitably mean that a solution is imposed upon the industry, a situation that must be avoided at all costs as not only would that likely prove much more expensive, but the optics for the industry would be negative in the extreme.
I started this column with the recognition of the increasing cost base and the uncertainties of returns in both the commercial and racing industry, but welfare/aftercare is a cost we should willingly want to meet, and I am sure that all breeders will agree upon that.
Whilst the TBA cannot always change the dial upon costs, we are working hard to secure more funding and lobbying loudly with the message that without the breeding industry there is no racing industry. There are the prospects of a sea change in the industry and no stone is being left unturned to achieve this goal.
