Kevin Hollinrake MP has written to the Chancellor to warn that planned changes to the business rates system could place racehorse training yards under “unsustainable pressure”, with serious consequences for the rural economy in Thirsk and Malton.
The Member of Parliament for Thirsk and Malton has joined forces with fellow MPs Nick Timothy (West Suffolk) and Lee Dillon (Newbury) to raise concerns about new Treasury guidance which would exclude racehorse training yards from Retail, Hospitality and Leisure (RHL) relief from April 2026.
Under the changes, announced following the 2024 Budget, eligible RHL businesses will benefit from a lower business rates multiplier.
However, guidance published by HM Treasury in October states that premises used for stabling working animals, including professional racehorses, will no longer qualify.
Mr Hollinrake said the move would disproportionately affect areas such as Thirsk and Malton, where racing plays a central role in local life.
“Racing is a vital industry in Thirsk and Malton, supporting jobs, local businesses and the wider rural economy,” he said.
“New Treasury guidance would exclude training yards from RHL relief, leading to significant increases in business rates for many yards over the coming years.”
Figures highlighted in the letter to the Chancellor show that, even with transitional relief, training yards could face an average increase of around 23 per cent in their business rates bills in 2026/27, rising to around 70 per cent by 2028/29 compared to 2025/26.
Mr Hollinrake warned that this comes at a time when trainers are already dealing with rising costs, including wages, energy, feed and transport.
“This decision risks placing unsustainable pressure on businesses that are already facing rising costs,” he said.
“I see first-hand the importance of racing to our local communities, and there is no convincing justification for singling out training yards when other comparable sporting and leisure facilities continue to receive support.”
The MPs argue that the rationale for excluding racing yards — that they are not open to the public — is flawed, pointing out that many leisure businesses receiving RHL relief are not routinely open on a walk-in basis. They also highlight what they describe as an inconsistency, noting that elite football and rugby training facilities can still benefit from relief, while racing yards cannot.
The MP added: “I am urging the Chancellor to urgently revisit this guidance, ensure fair and consistent treatment for racing yards, and engage properly with the industry to understand the real-world impact of these changes.”
The letter calls on the Chancellor to allow racehorse training yards access to the new lower RHL multiplier and requests a meeting to discuss the issue further, including engagement with the British Horseracing Authority and the National Trainers Federation.
Racehorse training is a cornerstone of the local economy in Thirsk and Malton, supporting hundreds of jobs directly and indirectly, and campaigners warn that increased financial pressure on yards could threaten both employment and the long-term future of the industry in the area.
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