HIKING gambling taxes at the Budget would “backfire” and push punters to the unsafe black market, the sector has said.

Chancellor Rachel Reeves has been warned not to press ahead with proposals to introduce a single remote betting tax amid the damage to horse racing.

Enormous damage would be caused if the 15 per cent tax paid by bookmakers is brought into line with online gaming which is taxed at 21 per cent.

Horse racing will go on strike next Wednesday when four race meetings are put on hold in protest at the proposed changes.

The horse racing industry would be dealt a £66 million a year hit and threaten thousands of jobs.

Ministers have been warned that any such move will have be catastrophic for racing’s fragile finances with punters also being driven to illicit markets.

A spokesperson for the Betting and Gaming Council said: “Hiking gambling taxes would backfire spectacularly.

“Far from boosting the Treasury, it will push punters towards the unsafe black market, which pays no tax, backs no sport and has zero standards.”

They add that it would shrink the legal market and damage sport.

The industry says it already pays £4 billion in taxes, supports 109,000 jobs and pumps £6.8 billion into the economy.

Ex-PM Gordon Brown has called for an increase on gambling taxes to help take children out of poverty.

The Treasury has previously said: “We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy – it is not about increasing or decreasing rates, and we welcome views from all stakeholders including businesses, trade bodies, the third sector and individuals.”

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