Thursday 18th December 2014
Levy Board Maintains Expenditure Levels in 2015 with Advance Notice of Potential Reductions in 2016
The Horserace Betting Levy Board’s allocation to prize money in calendar year 2015 is to be maintained at its 2014 levels along with that of other key items of expenditure.
The Board’s budgeted expenditure in 2015 is £78.0m, up on the £77.5m budgeted in 2014. These figures exclude Additional Voluntary Contributions (AVCs) from the four largest retail bookmakers.
However, the Board is maintaining expenditure levels in 2015 in the full knowledge that this is almost certain to incur a budget deficit in both the 2014/15 and 2015/16 Levy years, which run from April to March. This is very likely to necessitate a significant reduction in expenditure in calendar year 2016.
Levy Board Chairman Paul Lee commented:
“The Board’s ability to maintain in 2015 our contribution to prize money and other areas is a reflection of operating prudently and having rebuilt reserves since 2011.
“The Board had always anticipated running a small budget deficit in Levy year 2014/15. However, reports from the Bookmakers’ Committee of British horseracing’s trading performance, and resultant anticipated Levy yield, in the first two quarters of the 2014/15 Levy year have been worse than originally budgeted. The second quarter, covering July to September 2014, was particularly disappointing.
“The Board is mindful of the disruption that would be caused by making changes now to its expenditure in calendar year 2015 and also we have the ability to incur deficits for a period of time. However, this cannot be done on an ongoing basis.
“The Board is expecting to receive reports on the third quarter of 2014/15 at its meeting in late January 2015. From that point, the Board can begin to formulate a view as to the extent of an expenditure reduction that might be contemplated for 2016.”
Full details of the Board’s 2015 expenditure and latest income assumptions will be published in its Business Plan in the first quarter of 2015. This will also set out the detailed allocations to prize money and other areas, which largely mirror those in 2014.
Notes
For further information please contact Levy Board Chief Executive Alan Delmonte on 020 3603 2453.
The Board’s budgeted expenditure in 2015 is £78.0m, up on the £77.5m budgeted in 2014. These figures exclude Additional Voluntary Contributions (AVCs) from the four largest retail bookmakers.
However, the Board is maintaining expenditure levels in 2015 in the full knowledge that this is almost certain to incur a budget deficit in both the 2014/15 and 2015/16 Levy years, which run from April to March. This is very likely to necessitate a significant reduction in expenditure in calendar year 2016.
Levy Board Chairman Paul Lee commented:
“The Board’s ability to maintain in 2015 our contribution to prize money and other areas is a reflection of operating prudently and having rebuilt reserves since 2011.
“The Board had always anticipated running a small budget deficit in Levy year 2014/15. However, reports from the Bookmakers’ Committee of British horseracing’s trading performance, and resultant anticipated Levy yield, in the first two quarters of the 2014/15 Levy year have been worse than originally budgeted. The second quarter, covering July to September 2014, was particularly disappointing.
“The Board is mindful of the disruption that would be caused by making changes now to its expenditure in calendar year 2015 and also we have the ability to incur deficits for a period of time. However, this cannot be done on an ongoing basis.
“The Board is expecting to receive reports on the third quarter of 2014/15 at its meeting in late January 2015. From that point, the Board can begin to formulate a view as to the extent of an expenditure reduction that might be contemplated for 2016.”
Full details of the Board’s 2015 expenditure and latest income assumptions will be published in its Business Plan in the first quarter of 2015. This will also set out the detailed allocations to prize money and other areas, which largely mirror those in 2014.
Notes
- Total budgeted spend in 2015, excluding Additional Voluntary Contributions (AVCs) from the four largest retail bookmakers, is £78.0m compared with 2014’s £77.5m when the latter budget was agreed by the Board in late 2013.
- Excluding AVCs, the £52.4m budgeted for prize money in 2015 is £0.5m up on the figure originally budgeted for 2014 and compares to £50.2m budgeted in 2013, £37.0m spent in 2012 and £34.5m spent in 2011.
For further information please contact Levy Board Chief Executive Alan Delmonte on 020 3603 2453.