LOCAL ECONOMIC IMPACT OF NEWMARKET’S HORSERACING INDUSTRY
The UK horseracing industry contributes £4 billion annually to the British economy, with Newmarket being the most significant cluster.
A report published in early 2023 entitled ‘SQW Local Economic Impact Report’, examined the economic impact of Newmarket’s Horse-Racing Industry (HRI).
The study by Cambridge-based SQW into Newmarket’s horse breeding and racing cluster was commissioned jointly by West Suffolk Council and Newmarket’s HRI. The research that underpins it was completed in late 2022 – a time of severe economic difficulty following the Covid pandemic.
The approach to estimating these figures was through surveys of enterprises and organisations within a 25-mile radius of Newmarket.
The report shows that Newmarket’s thoroughbred horseracing and breeding industries contributed over £256 million to the local economy in 2022, despite the considerable impact of the pandemic and subsequent economic downturn. Research for similar reports conducted in 2014 and 2017 published GVA figures of £208million and £241.9 million respectively.
The Newmarket HRI’s economic contribution equates to approximately 7,033 jobs, although the direct employment figure of 3,285 had returned to 2012 levels, indicating some of the wider economic challenges which continue to impact the thoroughbred industries.
The SQW report’s findings illustrate the crucial role of the horse-racing industry as a contributor to West Suffolk’s economy:
• The HRI in Newmarket contributes £256.2 million annually to the local economy and directly supports over 3,200 jobs, reinforcing its essential role in the economic landscape of West Suffolk.
• Stud farms, a key component of Newmarket’s HRI, employ nearly 1,000 people and generate £97.9 million in Gross Value Added (GVA), making them critical assets to both the local economy and the community’s employment base.
• The industry’s broader economic impact extends beyond direct employment, related sectors include trainers, horse racing institutions, and veterinary services, adding significant value and supporting further job creation within West Suffolk.
•Tourism driven by horse racing events brings an additional £15.2 million into the local economy, providing 197 jobs and enhancing the vibrancy of local businesses, which directly benefits West Suffolk.
• Continued investments within the HRI, averaging an annual spend of £5.6 million on local projects, are critical in driving local economic growth and infrastructure development. These local investments also support 45 jobs within the district.
• Newmarket’s horse racing heritage is a point of local pride, attracting thousands of visitors annually, and helping to maintain the town’s unique character alongside boosting the local economy.
• Community involvement in the HRI extends beyond the racecourse, with local events, open days, and educational programs fostering a strong connection between residents and this historic industry.
NEWMARKET’S THOROUGHBRED RACING AND BREEDING INDUSTRY FORUM
DISCUSSING THE ISSUES THAT MATTER
Under a Memorandum of Cooperation with West Suffolk Council signed in May 2022, The Jockey Club was asked to represent the views of Newmarket’s horseracing industry (HRI) with one voice in dialogue with the local authority.
Representatives of Newmarket’s HRI - The Newmarket Thoroughbred Racing and Breeding Industry Forum (NTRBIF) - meet twice a year to inform the discussions.
Members include:
• The European Breeders Fund
• The Injured Jockeys Fund
• The International Racing Bureau
• The National Horseracing Museum
• Newmarket Stud Farmers Association
• Thoroughbred Breeders Associatio
• Veterinary Surgeons; Baker McVeigh, NEH, Rossdales
• Tattersalls
• Newmarket Trainers Federation
• The Jockey Club (Estates, Racecourses, National Stud)
• Racing Welfare
• British Racing School
• Discover Newmarket
• National Association of Racing Staff
• British Horseracing Authority
• Racehorse Owners Association (within 30 miles)
• Professional Jockeys Association
• Racing support businesses
• International Breeders
The key issues currently being discussed are:
• Housing Provision – including 16-18 year-old accommodation
• Transport and Travel Plan
• Opportunities for Industry Innovation
• Starter Yards and Training Rules
• Promotion of Newmarket
To date, consultation with NTRBIF has informed the Newmarket HRI’s representation to the West Suffolk Council Local Plan process to ensure the town’s status as the headquarters of the horseracing industry is recognised, protected and promoted whilst also working across the town to ensure the needs of everyone are progressed, including its neighbouring villages and rural hinterland. Going forward, the NTRBIF is pleased to expand this dialogue with other neighbouring local authorities.
Housing
Whilst housing need in Newmarket, as throughout Britain, is widely recognised, the shortage of appropriate housing for horseracing industry key workers has a significant impact on recruitment and retention of staff.
NARS Survey
A report published in December 2022 following a survey conducted by the National Association of Racing Staff (NARS) concluded that accommodation costs in Newmarket for horseracing staff remain consistently high, making mortgage prospects difficult and posing challenges for long-term staff retention. 61% live in either private rented accommodation or on-site accommodation provided by their employer. Many acknowledged that accommodation outside of Newmarket is more affordable, but means accounting for travel expenses, including car ownership, resulting in increased commuting and congestion.
16 – 18 year-old accommodation
The HRI attracts young entrants who require very specific accommodation to meet their safeguarding and social needs. The potential for a university model of supported halls of residence linked to the British Racing School has been discussed and the Newmarket Housing Trust has been established to raise funds.
Informing the West Suffolk Council Housing and Homeless Strategy
The requirement for suitable HRI accommodation for 16 – 18-year-olds, and 18 – 24 year-olds, as well as retirement accommodation for those who have left the HRI has been discussed as part of the consultation on WSC’s new Housing and Homeless Strategy.
Halls of Residence, Oxford
Travel route feedback
Credit: Greater Anglia
Transport and Travel Plan
To and from Newmarket
With 50% of all UK freight coming into Felixstowe and 80% of that coming by road via Newmarket, the town is gridlocked whenever there are problems on the A14. (Highways England is responsible for the A14) There have been discussions with West Suffolk Council around the vital need to move freight from road to rail with a priority being to re-double the Newmarket to Cambridge line (14 miles) which must happen before the Snailwell Loop is implemented, otherwise the Snailwell Loop will go onto a single-track line. The opportunity to work across council boundaries and have a strategic voice and approach is being explored. The expansion of Cambridge East is likely to have a further impact on traffic and prompts the need for an improved rail link which will support urban renewal in Newmarket rather than urban sprawl.
Within Newmarket
Traffic and horse interaction: Work is underway on horse crossing improvements, a Town-Wide Signage Strategy and the creation of a Horse Safety Zone.
Getting around: Suffolk County Council is promoting more Active Travel in communities around the county. With funding from the Active Travel Capability Fund it is offering e-bike and cargo bike trials across Suffolk. The trials are primarily for businesses in the county, but individual trials may also be considered.
Fourteen of Newmarket’s training yards have already signed-up to the two-month free-trial programme which includes delivery and collection. Trainers and staff are using their e-bikes to travel around town and to the training grounds. Some have taken-on pool bikes and now decided to buy their own discounted e-bikes as a long-term solution.
If you work for a business in Suffolk and think that you and your colleagues may be interested in an e-bike or cargo bike trial, please contact walkingandcycling@suffolk.gov.uk
Trials are free of charge and last 8 weeks. Helmets, chargers and locks are provided and you receive a free induction on your bike.
Opportunities for Industry Innovation and Growth
Veterinary Science
Newmarket’s three equine veterinary practices are world leaders and vital to the horseracing cluster. The scientific laboratory – LGC Cambridge (Fordham) site is one of the largest bioanalytical centres in the world. The high-tech campus is in a rural setting just outside Newmarket and 20 minutes from the bioscience hub of Cambridge.
The site employs around 380 scientists operating from purpose-built state of the art analytical labs. In discussions with West Suffolk Council, we are investigating opportunities for further innovation and growth in veterinary science to benefit both people and horses.
International Reception Centre
Industry feedback from the March 2022 exhibition, raised the need for facilities that could support international horses that would benefit from a designated home in Britain’s most important horseracing hub. There has been noted increased demand in helping support international trainers wishing to bring over a small number of horses seasonally in recent year which is desired not only in Newmarket but also across several premiere UK summer races.
The racecourse side masterplan has been updated for such a facility that could support these seasonal movements. This could be used in combination with satellite yards as their demands would be in complimentary times of the year with an option to be a standalone facilities in the longer term if successful.
Waste to energy
A significant amount of horse waste is produced daily in Newmarket and is currently taken by road to a waste-to-energy plant at Thetford. Our discussions with local authorities are exploring opportunities for Government funding to support research and development into new sustainable heat networks.
Starter Yards and Training Rules
Just like any start-up business, new entrants to racing and training need appropriate space and the funds to get going. Currently, this is restrictively expensive.
British Horseracing Authority (BHA) rules are strict and require evidence of funds available, also licencing of yards. To attract the best talent and ensure the long-term future of horseracing, the industry needs to provide start-up facilities, initially small-scale, then scalable, to enable growth to a certain level before becoming a stand-alone operation.
The cost of a start-up racing yard is circa £1.5 million. Without new entrants, the long-term future of horseracing is uncertain. The BHA and others in the industry are discussing what measures can be taken to encourage more new starters.
Various options being discussed, include:
• Built to rent stable accommodation as smaller individual yards
• Splitting American style barns
• A similar scheme to that in Chantilly, France, where a yard is split into smaller yards to make the point of entry more straight-forward and affordable.
Reducing barriers to entry will promote inclusion and diversity in the industry.
Growing Newmarket’s tourism offer
Newmarket attracts 1.74million trips annually (2022) with a total value of £76million to the local economy. The equine sector is the key driver for tourism in Newmarket, however there are other drivers such as history, culture and food and drink.
• Day trips account for 1.71million trips compared to 32,000 staying trips.
• Overnight trips are still down based on pre-pandemic levels.
• Jobs in the sector account for around 1,443 and have recovered to near pre-pandemic levels.
• Overnight spend has surpassed pre-pandemic levels and holds a great potential for growth by increasing volume and length.
• Newmarket is currently promoted as a destination by Discover Newmarket which was established in 2014.
• Now in their 10th year of operation their mission remains to work collaboratively with stakeholders and tourism partners to promote Newmarket and the surrounding area as a key tourism destination for the eastern region and to showcase the town’s unique assets and support the local visitor economy.
In July Suffolk and Norfolk won a joint bid to become a Local Visitor Economic Partnership (LVEP) which means they are represented by Visit England. This unlocks funding and promotional opportunities both on a national and international platform.
