BUSINESS PLAN AND BUDGET GUIDE 2017-2019 · The British Horseracing Authority (BHA) has developed a...
Transcript of BUSINESS PLAN AND BUDGET GUIDE 2017-2019 · The British Horseracing Authority (BHA) has developed a...
1© British Horseracing Authority
BUSINESS PLAN AND BUDGET GUIDE 2017-2019
BUSINESS PLAN AND BUDGET GUIDE 2017-2019
CONTENTS
Foreword 2
Introduction 3
Vision,mission,valuesandculture 3
Strategicobjectives2017-2019 4
Businessplan2017-2019 5 - 14
Budgetguide2017-2019 15 - 18
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BUSINESS PLAN AND BUDGET GUIDE 2017-2019
FOREWORD BY NICK RUST, CHIEF EXECUTIVEI’m delighted to introduce the BHA’s business plan for the next three years together with
our budget guide for the same period.
Asanorganisationwhoseactivityispredominantlyfundedbyitsmembers–inourcase,
owners,trainers,jockeys,studandstablestaffandracecourses–it’sincrediblyimportantthat
we’reopenandtransparentaboutwheretheBHA’smoneycomesfromandhowit’sspent.
That’swhywe’republishingthedetailsofourbusinessplanforthenextthreeyearsalongside
ourbudget,togetherwithanexplanationofwhatthesemeantoeveryonewhopaysfeestous.
InOctober,myBoardagreedathree-yearbudgettosupportourbusinessplanandoverthe
lastmonthwehaveshareddetailswithstakeholderrepresentativeorganisations.Oneofthebenefitsoftakingathree-year
approachtoplanningandbudgetingisthatithasenabledustoagreeanychangestofeesforthenextthreeyears,providing
muchgreatercertaintytooursport’sparticipantsandsavingtimeforstakeholderswhoareinvolvedinthebudgeting
processitself.Linkingourbudgetandbusinessplanalsohelpstoclarifyforparticipantswheretheirfeeswillbedirected
overthenextthreeyears.
Thisdocumentprovidesthedetailsofourplans,budgetandfees.Insummary,ourbudgethasbeendesignedtoensurethe
BHAbreaksevenoverthethreeyearsandthatwemaintainasuitablelevelofreservestodealwithanyunforeseenevents.
Wehavesoughttolimitfeeincreasesoverthisperiod,andtophasethemintoreflectthefactthatwedonotexpect
increasesinLevyfundingtoflowthroughtoparticipantsuntil2018.Subjecttoinflationlevels,BHAfeeswillthereforerise
by2%in2017,2.75%in2018and2.75%in2019.
IappreciateanyincreaseisunwelcomeandIwanttobeclearwehavedonewhatwecantolimitthescaleoftheincrease.For
example,ourbudgetisbasedontheBHAdeliveringtotalannualsavingsof£1.1millionby2019comparedto2016.Ourbudget
hastoreflectourcurrentfinancialsituation.Overthepastsixyears,theBHA’sincomehasfallenby9.5%inrealterms,duetoa
reductioninfeeincomeasregistrationshavedeclined,butalsoasaresultofourdecisionnottoincreasefeesin2013and2014.
At the same time, we’re seeking to deliver even more for our sport, including:
SettingupthenewRacingAuthoritytotakecontroloffutureLevyincome
Developingandimplementinganewequinewelfarestrategy
Increasingthevolumeofhorsetestingtokeepoursportfairandclean
Addressingindustrystaffingchallengesincludingrecruitment,trainingandwelfareinitiatives
MakingimportantchangestoourdisciplinarypanelsandprocessesfollowingourIntegrityReviewandChristopher
QuinlanQC’sreviewofthestructureandcompositionofourDisciplinaryPanel,AppealBoardandLicensingCommittee
ExpandingourGovernmentrelationstofocusonracing’ssignificanteconomicfootprint,includingjobsandruralbusiness,
educationandwelfare
EstablishingaleadershiproleinUKsportandinternationalracinginareasofanti-dopingandsportsgovernance.
Ihopethatyouwillfindtheinformationcontainedinthisbusinessplanandbudgethelpfulingainingabetterunderstanding
ofwhatwe’redoing,tobuildabrighterfutureforoursport,ourhorsesandourpeople.
IwouldliketoendbythankingyouforyourcontributionandsupportforBritishracing,withoutwhichwewouldhavenosport.
Bestwishesforasuccessfulseasonin2017.
NickRust,ChiefExecutive.
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INTRODUCTION
VISION, MISSION, VALUES AND CULTURE
The British Horseracing Authority (BHA) has developed a three-year business plan covering the years 2017-2019.
The business plan includes a set of strategic objectives and initiatives and a budget.
The benefits of a three-year business plan are that it:
1)Clarifiestoparticipantshowtheirfeesarebeingspentoverthenextthreeyears.
2)AllowstheBHAtolaunchlong-terminitiativestoimprovetheserviceitprovidestoracingintheknowledgethatthey
havebeenapprovedbystakeholdersandarefullyfunded.
3)Providesparticipantswithcertaintyoffeeincreasesforthenextthreeyears,whichshouldassistwithbusinessplanning.
4)Reducesthelevelofresourcerequiredfromstakeholdersduringfeediscussions.
5)EnablestheBHAtoidentifyanyfuturefundinggapsandprovidessufficienttimefortheBHAtoseekexternalfunding,
developnewincomestreamsoridentifycostsavingsinordertobridgeanygaps.
6)AllowstheBHAandstakeholderstomonitorandevaluatetheperformanceoftheBHAagainstitsbusinessplan.
7)FulfilstheBHA’saimsofbeingtransparentandaccountabletoitsparticipants.
Our vision
Togetherwewillbuildabrighterfutureforoursport,ourhorsesandourpeople.
Our mission
Wegovern,regulateandrepresentBritishracing.
Weleadandco-ordinateactivitieswhichwillensuretheoverallhealth,developmentandgrowthoftheindustry.
Weprioritisethewelfareofourhorsesandourpeople.
Our values
Integrity: WewillalwaysdotherightthingtoupholdtheBHA’sreputation
forfairness,andtomaintainthetrustofourstakeholders.
Accountable:Wetakepersonalresponsibilityforouractionsandstrivetoimprovethe
healthofBritishracing.
Credible:Weareopenandhonestaboutwhatwedo,andtreateveryonefairlyandwithrespect.
Responsive:Westayin-tunewiththesport’sdiversestakeholderssothatwecaneffectively
meetagreedobjectivesandgoals.
Progressive:Wepromoteaforward-thinkingandcollaborativeculturewhilerespectingthe
strongheritageofBritishracingasasportandanindustry.
Our culture
Inaforward-thinkingenvironmentthatencouragescollaboration,cohesion,commitmentandconfidence,theBHA
providesleadershipforBritishracingthatisprotectiveofthedeeptraditionsandproudhistoryofthesportwhilstguiding
ittowardsabrightfuture.
TheBHA,withaculturethatrespectsandrecognisesthecontributionsandprofessionalismofitspeople,seeksto
understand,beattentiveto,andbeproactiveinaddressingtheneedsofitsparticipantsandwiderstakeholders.
Integrity Accountable Credible Responsive
P
rogr
essiv
e
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STRATEGIC OBJECTIVES 2017-2019Wehavesetninestrategicobjectivesfortheperiod2017-2019.
1) Equine welfare leadership: Toprovideequinewelfareleadership.
2) Sustainable industry funding: Todeliverimprovedandsustainablefundingfrombettingonthesport.
3) Keeping racing fair and clean: Tocontinuetoevolvearegulatoryandintegrityframeworkthatensures
improvedconfidenceamongstparticipantsandtheracingandbettingpublic.
4) Growing British racing together: Toworkwithothersinthesporttoincreaseparticipationlevelsanddeliver
growthfortheindustry.
5) Competitive and compelling racing: TointegratethedistributionoffundingviatheRacingAuthoritywith
thesport’swiderobjectivesforthefixturelistandraceprogramme.
6) Looking after our people: Todevelopproperlyfundedandintegratedindustrytraining,welfareandcareers
marketingactivities.
7) Professional workplace: Tosupportthecreationandmaintenanceofafriendly,productiveandprofessional
workplace,withanengagedworkforcethatiscapableofcontributingtothepresentandfuturesuccessofthebusiness.
8) World class racing: TocontinuetodevelopaframeworkthatseesBritainfurtheritspositionasthehomeofthebest
qualityracingintheworld.
9) Financial responsibility: TooperatetheBHAonabreak-evenbasisoverthemedium-termwhilstmaintainingan
appropriatelevelofcashreserves.
EQUINE WELFARELEADERSHIP
GROWING BRITISHRACING TOGETHER
SUSTAINABLEINDUSTRY FUNDING
COMPETITIVE ANDCOMPELLING RACING
KEEPING RACINGFAIR AND CLEAN
PROFESSIONALWORKPLACE
WORLD CLASSRACING
LOOKING AFTEROUR PEOPLE
FINANCIALRESPONSIBILITY
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BUSINESS PLAN 2017-2019
Key initiatives
What: Enhance the leadership and capability of the BHA’s equine health and welfare function.
In 2017, we will:
Completetherecruitmentofadirectorofequinehealthandwelfare
Buildthecapabilityoftheequinehealthandwelfarefunctiontoensureitcanleadandimplement
theagreedstrategy.
What: To improve the capture, analysis and benchmarking of racehorse welfare information.
In 2017, we will:
Secureexternalprojectfunding
Communicateandactonthefindingsofthedatacaptureproject.
What: To continue to develop the BHA’s equine welfare strategy.
In 2017, we will:
Finaliseastrategyforequinehealthandwelfare
Begintoimplementthenewstrategy.
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2
3
1. Equine welfare leadership:Toprovideequine
welfareleadership.
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Key initiatives
What: To secure the successor to the existing Horserace Betting Levy.
In 2017, we will:
SupporttheGovernmenttoobtainEuropeanclearanceandintroducetherequiredlegislation
IncorporateanewtripartiteRacingAuthority,includingtheappointmentofdirectors
EstablisharelationshipbetweentheRacingAuthorityandtheGovernment’scollectionarmsothatfunds
canflowtoracing.
What: To develop a modern working partnership with all forms of betting operator under the Levy
successor, based on data sharing and mutual interest; ensure a smooth transition from the Authorised
Betting Partners model to a level playing field.
In 2017, we will:
IdentifytheoptimumformatforthesuccessortotheBettingPatternsWorkingParty
Re-establishtheRacingandBettingLeadershipForum
Securedata-sharingagreementswithacross-platformsetofbettingoperatorsrepresentingmorethan
50%ofbettingactivity.
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2. Sustainable industry funding:Todeliverimproved
andsustainablefundingfrombettingonthesport.
What: To further improve interaction with a key customer group through the Horserace Bettors’ Forum (HBF).
In 2017, we will:
Continuetoworkconstructivelywith,andsupporttheactivitiesoftheHBF
SupporttheHBFtorefreshitsmembership.
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What: To continue to develop the Anti-Doping Programme.
In 2017, we will:
Continuetoevolveouronlinesystemsforrecordingahorse’slocationandcircumstancesforbothwelfare
andanti-dopingpurposes
Establishaprotocolforvoluntarytesting
Introduceanelectronic,paperlesssamplecollectionsystem.
Key initiatives
What: To implement the recommendations arising from the Integrity Review in accordance with the
timetable set out in the implementation plan.
In 2017, we will:
Establisharevisedintegrityeducationprogramme
Finaliseandimplementanalternativefast-trackdisciplinaryprocess.
What: To implement the Board-approved recommendations from the Review of the Disciplinary Panel,
Licensing Committee and Appeal Board led by Christopher Quinlan QC.
In 2017, we will:
CompletetheimplementationoftherecommendationsoftheQuinlanReview.
What: To complete a rewrite of the rules of racing.
In 2017, we will:
Completethelegaldraftingprocess.
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2
3
3. Keeping racing fair and clean:Tocontinuetoevolve
aregulatoryandintegrityframeworkthatensures
improvedconfidenceamongstparticipantsandthe
racingandbettingpublic.
4
What: To continue with a review of all aspects of stewarding.
In 2017, we will:
Completeareviewofpotentialstewardingmodelsandfundingoptions
Implementnewstewards’roomreplaytechnologyatpremierfixtures.
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What: To implement the recommendations from the project relating to the declaration of information
associated with the horse.
In 2017, we will:
Enhancethe‘going’pageontheBHAwebsiteandRacingAdministration
Makenon-runnerhistoryinformationavailableontheBHAwebsite
Developandimplementaplanforthedeclarationofadditionalinformationassociatedwithdeclaredrunners.
6
What: To complete the review of the policies, procedures and effectiveness of the licensing department.
In 2017, we will:
Completethereviewofthefunction,capabilityandperformanceofthelicensingdepartment
Commenceimplementationofrecommendationsfromthereview.
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Key initiatives
What: To ensure that the members, through successful operation of the Members’ Committee and Executive
Committee, discuss and agree on industry matters as set out in the Members’ Agreement.
In 2017, we will:
EnsurethatboththeMembers’andExecutiveCommitteescontinuetoworkeffectivelytoprogressmattersand
leadandsupporttheindustry’sgrowthstrategy.
What: Following publication of the UK Sports Governance Code and as part of a BHA-wide analysis of governance
best practice generally, identify and address any gaps in the BHA’s governance structure and processes and
provide leadership on governance issues across the industry.
In 2017, we will:
Completeagapanalysisandbestpracticeassessment
Developaplantoaddressanygaps,includingassociatedfunding
Beginimplementationoftherecommendations.
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4. Growing British racing together:Toworkwith
othersinthesporttoincreaseparticipationlevels
anddelivergrowthfortheindustry.
What: To reform the administrative processes and costs of racehorse ownership.
In 2017, we will:
Introduceanonlineadministrationsystemforownersandasimplifiedapproachtofees
Implementacommunicationsstrategyandinvolveownersintestingthenewregistrationprocess
Completeausersurveyonthenewregistrationprocess.
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What: Introduce a BHA Code of Conduct for syndicates and a registration process for individuals
managing syndicates.
In 2017, we will:
PublishandimplementaCodeofConductandanew,simplifiedregistrationstructure
MonitorCodeofConductcompliance.
4
What: To adopt a more liberal approach to racing colours.
In 2017, we will:
Completeproposalsfortheliberalisationofcolours,includingapremiumoptionforthosewishingtodesign
theirowncolours
Implementnewcoloursregulations,allowingawiderchoiceofstandarddesignsandshadesforallowners.
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Key initiatives
What: To lead an industry-wide project which introduces a strategic approach to the distribution of Racing
Authority funding, including funding of the fixture list and race programme, that best supports the future
growth of the sport from 2018.
In 2017, we will:
PresentrecommendationsfromtheFixturesGrouptotheExecutiveCommittee
Begintoimplementrecommendationsaheadofthe2018fixtureprocess
Completethefixturelistandfundingprocess.
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5. Competitive and compelling racing:Tointegrate
thedistributionoffundingviatheRacingAuthority
withthesport’swiderobjectivesforthefixturelistand
raceprogramme.
What: To create a fixture criteria with wider objectives for the sport.
In 2017, we will:
DeveloprecommendationswiththeFixturesGroup
Incorporatedetailedanalysiswiththesupportofthird-partyexpertise
Simplifythefixtureallocationprocess.
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What: To complete implementation of the Holistic Race Planning project supported by increased
specialisation within the race planning team.
In 2017, we will:
AllocatetheRaceIncentiveFundtodeliveranoptimalprogrammeofclass1-3races
Continuetomakesuggestionstoracecoursesforprogrammingoflower-graderaces
ReviewtheaccuracyofourOptimalRacePlanningmodel.
3
What: Continue to develop the BHA’s current approach to handicapping, including objectives and
methodology, as well as operational matters.
In 2017, we will:
Produceahandicappingdatafacilityandincreasereportingtothepublic.
4
Key initiatives
What: To develop, co-ordinate and sustain a new funding model that supports a responsive and integrated
industry recruitment, retention, training and education programme.
In 2017, we will:
Createafundingandpaymentstructure,withappropriateflexibility,tosupportstrategy,jointworking
anddriveperformanceandaccountability
Produceaconsultationandcommunicationsplanandimplementaccordingly.
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6. Looking after our people:Todevelopproperly
fundedandintegratedindustrytraining,welfareand
careersmarketingactivities.
What: To develop and establish a suitable framework system for developing and assessing potential
racehorse trainers in advance of their application for a licence to practice.
In 2017, we will:
Scopetheprojectwithkeystakeholders
Identifyarevisedprogramme
Implementanew,morethoroughandrobustapproachinthetraininganddevelopmentofskilled
racehorsetrainersandemployers.
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What: To take a central role in pulling together a functioning database and customer relationship portal
for potential new recruits to the industry.
In 2017, we will:
Developacomprehensivedatabaseofpotentialrecruits/traineeswhoareactivelyseekinginformationon
careersinracing
Aimtoachieve4000+newcontactsoverthecourseof2017
Integratedatarelatingtopeoplewhogodirecttothetrainingproviders/trainersforinformationandthosethat
comeviacareersinracingtocreateonedatabasetoachievemaximumengagementwithallpotentialrecruits.
3
What: To improve industry safeguarding guidance and procedures for young people and vulnerable
adults through the introduction of a standardised policy for the industry and provide implementation
support to employers.
In 2017, we will:
Produceadraftpolicyandapproachforconsultationwiththeworkinggroup
Leadtheroll-outofthefinalapproachtotheindustry,workingalongsidekeystakeholders.
4
What: To develop the insurance options for the industry, prioritising improvements on the existing offering
of healthcare, injury rehabilitation and occupational health for racing grooms.
In 2017, we will:
Developaproposaltoincludehealthcareinthecurrentinsuranceoffer,includingcostings
Holddiscussionsaroundanimproved24/7occupationalandnon-occupationallife/accidentcover
Identifyfundingoptionsandseekapprovaltoimplement.
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7. Professional workplace:Tosupportthecreation
andmaintenanceofafriendly,productiveand
professionalworkplace,withanengagedworkforce
thatiscapableofcontributingtothepresentand
futuresuccessofthebusiness.
Key initiatives
What: To continue to bring the BHA’s core values to life though the introduction of suitable and relevant
activities and through ongoing internal communication.
In 2017, we will:
Implementanewannualreviewandperformancemanagementprocess
Ensurethatallrecruitment,selectionandinductionactivitiesarefullyintegratedandalignedwiththe
BHA’svaluesandbehaviours
Deviseandimplementinitiativesandactivitiestobringthevaluestolife
Create,commissionandintroducevisiblereminders/symbolsofthevaluesacrosstheorganisation.
What: To focus on developing key talent across the organisation and build capability at all levels.
In 2017, we will:
Continuetodevelopourleadershipandexecutiveteam
Supportthecreationandimplementationofpersonaldevelopmentplansforthoseinkeyrolesandensure
thatinternally-promotedmanagersreceivetherequiredsupport
Embedtalentmanagementandsuccessionplanningactivitieswithintheannualperformancereviewcycle
Driveactivitiesthatbuildcapabilityacrosstheorganisationinlinewiththetalentmanagementand
successionplanningrequirements,includingengagingmentoringsupportfromtheBHABoardmembers
Deviseandlaunchaseriesofinternally-run,BHA-specific,peopleskillsworkshops.
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2
3 What: To drive forward a range of initiatives with the aim of creating a climate of togetherness across
the organisation.
In 2017, we will:
Organiseactivitiestoencourageandsupportgreatertransparencyandupwardcommunication
Continuetodevelopahealthandwellbeingagendaacrosstheorganisation
Furtherexpandoursocialandcharitableactivities
Deliverappropriatetrainingforourpeopleonmentalhealth
Ensurethateveryoneacrosstheorganisationhasanopportunitytobeinvolvedindefininganappropriate
actionplan,followinganalysisofthefeedbackelicitedintheannualemployeesurvey.
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What: To build on the reward and recognition initiatives already started in 2016.
In 2017, we will:
LaunchtheSalaryandGradingStructure
Workwiththeleadershipteamtofurtherdeveloptheorganisation’sapproachtorecognition
Ensuretheexistingbenefitspackagecontinuestodeliverouraspirationstoattractandretaingoodtalent,is
affordableandatleastinlinewithcomparableorganisations.
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Key initiatives
What: To continue to review the British flat race programme for stayers and subsequently extend the
review to the European Pattern programme.
In 2017, we will:
SeekEuropeanPatternCommitteesupport
Announcefurtherplansfortheraceprogramme
WorkwiththeTBAtoidentifysuitablebreedinginitiatives
Begintostaggertheintroductionofinterventions.
What: To enhance the mares’ jumping programme.
In 2017, we will:
Completeafull-scalereviewofprogress,andproduceanassociateddatapack
PresentanupdatedplantotheJumpPatternCommittee
ConsiderlaunchingaPRcampaign
Staggerintroductionoffurtherinterventions.
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2
8. World class racing:Tocontinuetodevelopa
frameworkthatseesBritainfurtheritspositionas
thehomeofthebestqualityracingintheworld.
What: To improve quality control of the international race programme (through the International Federation
of Horseracing Authority’s International Grading and Race Planning Advisory Committee).
In 2017, we will:
WorkwiththeInternationalRacePlanningAdvisoryCommittee(IRPAC)inordertorecordastatement
ofintenttosupporttheprogressionofthisinitiative
HelpIRPACtoidentifyracesinPartIwhichdonotcomplywitheachregion’sgroundrules
HelpIRPACtoidentifytheextentandeffectofexistingqualitycontrolmechanismsineachPartIIcountry
Deviserecommendationsforimprovingbestpracticeandprovidinggreaterconsistencybetweentheregions
Submitreportandrecommendationsforthewayahead.
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Key initiatives
What: To implement a three-year business plan and budgeting process, which is open and transparent
about the cost of the BHA and the level of funding required from the sport’s participants.
In 2017, we will:
Producesix-monthlyreportsonourbusinessplanandbudgetforstakeholders
Updatebusinessplanandbudgetfor2018.
1
9. Financial responsibility:TooperatetheBHAon
abreak-evenbasisoverthemedium-termwhilst
maintaininganappropriatelevelofcashreserves.
What: To identify opportunities to make business improvements that create efficiency savings internally
and also with the BHA’s main suppliers.
In 2017, we will:
DevelopcapabilitywithintheBHAtosupporttheidentificationofareasforbusinessimprovement
Identifythoseareasofthebusinesswherethereisgreaterscopeforefficienciesandcreatean
implementationplan
Workwithmajorexternalsupplierstoidentifyareasforsavings.
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What: To develop and agree the future approach to Racing Administration.
In 2017, we will:
Researchanddevelopablue-printforfutureracingadministration
PresentareporttotheBHABoard,includingoptionsandrecommendations
Createanimplementationplan.
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BUDGET GUIDE 2017-2019Introduction
The BHA has developed and approved a three-year budget which has been shared with stakeholders. The aim of
producing such a plan is to give greater certainty over fee rises to participants to allow them to plan accurately and
also to set out our strategy for the next three years.
2016 financial overview
Our2016budgetwassetwithacashdeficitintheregionof£770,000anddespiteadditionalcostsincertainareasofthe
business,itislikelythattheactualresultfor2016willbeslightlybetterthanbudget.Thishasbeenachievedthroughimproved
incomeperformanceandvariousimprovementsacrossthebusinesswhichhavedeliveredareductionincostsandoffset
additionalcostsarisinginotherareas.Itisanticipatedthattheactualcashdeficitin2016willbeapproximately£650,000.
2016 financial overview
Thebudgethasbeensetwiththeaimtobreak-evenoverthethree-yearperiod.Itisbasedona2%increaseinfeesin
2017,followedby2.75%increasesinboth2018and2019.Thisphasingisdesignedtoassisttheparticipantsaheadof
increasedcentrally-fundedexpenditurefrom2018.
The2018and2019feeriseswillbereviewedagainstameasureofConsumerPriceIndex(CPI),plus0.75%attheend
ofOctober.Thehigherofthetwometricswillthenbeapplied.ThisistoprotecttheBHAagainstsignificantinflation
increasesinitscostbasenotbeingoffsetbyanincreaseinitsincome,anditsneedtomaintainfinancialstability.
Income and expenditure
Totalincome
Totalexpenditure
Non-cashadjustments
Cash surplus/(deficit)
20162015
31,46330,652
(31,812)(30,492)
(296)
(645)
175
335
forecast£’000
actual£’000
2017
32,855
(32,678)
(610)
(433)
budget£’000
2018 2019
33,047 33,871
(33,004) (33,355)
(80)
(37)
0
516
budget£’000
budget£’000
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Racecourses
Owners
Otherparticipants
Publications
Other
Total
20162015Income
2017 budgeted income
20,65419,901
8,2047,961
650
577
1,378
31,463
659
564
1,567
30,652
forecast£’000
actual£’000
2017
21,260
8,393
650
577
1,975
32,855
budget£’000
2018 2019
21,845 22,446
8,624 8,861
667
588
1,323
33,047
685
599
1,280
33,871
budget£’000
budget£’000
65%Racecourses
25%Owners
2%Otherparticipants
2%Publications
6%Other
Approximately90%ofourincomecomes
fromfeesfromracecoursesandowners.
Thispercentageremainsconsistenteach
year.Increasesinincomearedrivenbyfee
risesandbudgetedchangesinactivity.
OverthefollowingpagesweprovideabreakdownoftheBHA’sincomeandcosts,aswellasnewinitiativesandactivities
beingundertaken.
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Totalstaffcosts(incdirectors)
Weatherbys
Samplingandresearch
Propertyandoverheads
Legalandprofessional
Other
20162015Costs
16,32715,484
5,2855,378
3,367
2,550
1,285
2,998
3,330
2,405
1,016
2,879
forecast£’000
actual£’000
2017
17,065
5,334
3,432
2,658
780
3,409
budget£’000
2018 2019
17,314 18,211
5,225 5,159
3,698
2,676
840
3,251
3,408
2,691
840
3,046
budget£’000
budget£’000
Total 31,81230,492 32,678 33,004 33,355
52%Totalstaffcosts(includingdirectors)
16%Weatherbys
11%Samplingandresearch
8%Propertyandoverheads
2%Legalandprofessional
11%Other
TheBHAemploysmorethan220people.Wealsoemploysessionalstaff,primarilyinracedayregulationandoperations,
whosecostsareincludedwithintotalstaffcosts.Thesesessionalstaffarenotincludedwithintheheadcountfigure.In
2017,furtherchangestoourstructureareplanned,manyoftheseinresponsetotheQuinlanandIntegrityReviews.
Wecontinuetoseekimprovementsinthewaywehandleracingadministrationandassuch,aimtodeliverfurtherreductions
intherealcostofdelivery.Newsystemsfortrainersarealreadyinuseandfurthersystemsforownersareduetobelaunched
inthefirsthalfof2017.WeatherbysremainakeybusinesspartnerfortheBHAindeliveringtheseimprovements.
Thefirststrategicobjectiveincludedwithinthebusinessplanrelatestoequinewelfareandcentraltodeliveringthis
objectiveistheappointmentofaDirectorofEquineHealthandWelfare.Thecostofthisappointmentisincludedwithin
staffcostsoutlinedabove.Afurthercomponentofthisobjectiveisourannualsamplingandresearchbudgetofmore
than£3.4million.WeareabletoclaimResearchandDevelopmenttaxcreditsonpartofthisfigure.
2017 budgeted costs
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Wehavespentsignificantsumsonlegalandprofessionalcostsin2016,bothinourroleasregulatorbutalsoonbehalfof
thewholeindustryinestablishingareplacementtotheLevy.Weanticipatethesecostswillreducesignificantlyin2017.
OurothercostsincludesthedeliveryofacontemporarysetofrulesandtheQuinlanReviewrecommendations.We
remaincommittedtocommunityengagementandgrowingunderstandingandawarenessofthesportandwillbe
contributingdirectlytotheRacingTogetherandHorseComesFirstCampaigns.
Thebudgetincludessavingsfrominternalbusinessimprovementsandrevisedcontractswithkeysuppliersthatby2019
willtotalintheregionof£1.1millioncomparedwith2016.
Capital expenditure
WeinvestinnewtechnologytoensuretheBHAisusingthemostappropriatemethodstodeliveritscoreintegrity
andregulatoryfunctions.In2017,theupgradetothedigitalarchive–usedtomaintainallracerecordings–willbe
completed.Wewillalsoroll-outanewracereplaysystemforusebythestewardsonraceday,withtheinitialunitin
placeforRoyalAscotinJune2017.
Wecontinuetoembracenewtechnologyandwillbeupdatingsystemstomakebetteruseofcloudtechnology.
Cash
Operatingcashattheendof2016isforecastintheregionof£4million.Duringthethree-yearperiod,itisforecasttofall
toabout£3millionduring2018,beforerecoveringtoabout£4millionbytheendof2019.