The Chancellor has been warned that tax rises on betting operators could have an impact on non-league football amid duty hike fears at next week’s Budget.
Chancellor John Healey will next week deliver Andy Burnham’s first Budget since his coronation as Prime Minister earlier this year, and taxes are expected to be jacked up on the gambling industry.
There are fears that machine games duty could be doubled to 40 per cent, inflicting an additional £100m in costs on retailers, though recent reports suggest a smaller, more realistic rise may still have adverse implications for sports such as horse racing.
Nick Robinson, the chair of the Isthmian League, on behalf of the Northern Premier, Isthmian and Southern Leagues – which are sponsored by Ladbrokes and Coral parent Entain – wrote: “At our level of football, a few thousand pounds can make the difference between a good idea remaining on paper and a community project getting off the ground.
“Our clubs play at the seventh and eighth tiers of the English football pyramid, just below the National League’s divisions.
“As the Budget approaches, the [football] regulator’s findings should focus minds on football’s financial resilience. We hope policymakers recognise the wider contribution businesses make to our towns, including the sponsorship that helps clubs plan ahead and serve their communities.”
Betting taxes could hit all sports
There has been a wider shift away from gambling sponsorship in football, with the sector now voluntarily banned from the front-of-shirt partnership slots by Premier League teams. The ban was introduced at the beginning of this season but has not resulted in a collective dip in revenues from sponsors for the 20 top flight teams.
Elsewhere The Hundred in cricket has stated that it does not wish for its teams to be sponsored by betting brands, but much of horse racing, rugby league and lower league football relies on the industry for income.
Healey’s Budget will reportedly include hikes to machine games duty but at a lower rate than the doubling backed by the Social Market Foundation and former Prime Minister Gordon Brown. The think tank was this week found to have questioned its own proposals and the potentially “overly optimistic” figures relating to how much tax changes would raise and how many jobs would be lost or re-found.
Added Robinson: “The Independent Football Regulator’s first draft State of the Game report, published this week, shows how fragile football’s finances have become. It found that 94 per cent of clubs in England’s top five divisions made a loss last season. Those figures concern the divisions above us, but the value of dependable backing is something we understand only too well.
“We recognise that gambling sponsorship in football can be controversial. Our experience with Entain demonstrates the positive contribution responsible operators can make through sustained support for clubs and the local communities they serve.”