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The British Horseracing Authority (BHA) has announced Lord Allen of Kensington will begin his role as chair on September 1 as its fight against a proposed "racing tax" gains support from a wide range of stakeholders.

Allen joins as the BHA has been urging racing fans to sign a petition, which at the time of writing has garnered over 1,900 signatures, to prevent the current 15 percent tax rate paid by bookmakers on racing from being harmonised with the current 21 percent rate charged on all remote gambling duties.

The BHA predicts the changes will result in £66m in lost income via the Levy, media rights and sponsorship, as well as putting 2,752, according to its update on July 29.

Brant Dunshea, CEO at the BHA, said: “The horseracing industry is already in a precarious financial position, and the latest research provides a much more catastrophic forecast than we first thought. We’re talking thousands of jobs at risk across the supply chain, severely impacted towns and communities, and the irreversible decline of the country’s second most popular sport."

The Treasury’s on the proposals closed on July 21, and the government said it will set out its response “in due course”.

In a published on July 29, the cross-party think tank the Social Market Foundation (SMF) argues against harmonising duties across betting and gaming, advocating for differentiated rates based on harm.

It argues for a system that “taxes harmful, low-employment online casino products more, and supports traditional sectors like horseracing. The proposals could raise up to £2bn annually while reducing harm and boosting public value”, according to the SMF.

The All Party Parliamentary Group for Gambling Reform welcomed the “timely and constructive contribution to ongoing discussions on gambling taxation reform”, adding that it supports a “differentiated duty recognising the vast differences between gambling products and their associated harms”.

However, trade group the Betting and Gaming Council (BGC) welcomed Allen’s appointment as it claims the BHA needs a new strategy, with chair Michael Dugher stating racing “feels like a case of lions led by donkeys”.

“I hope we see less of the politics of entitlement and that the sport finally gets real about the serious challenges it faces. Racing needs a growth strategy, not more delusional special pleading or petulant demands for handouts,” Dugher said.

He accused the BHA of working with the “anti-gambling lobby” and some of its members of indulging themselves by “denigrating other parts of our regulated business, including on the threat of higher taxes”.

“We want to work collaboratively with racing to help reverse the current decline of the sport. I am looking forward to personally working with Charles and I wish him every success in what is undoubtedly a Herculean task,” Dugher said.