Alex Salmond warns of 'serious' job losses in horse racing

First Minister Alex Salmond has warned that "serious' job losses are looming in the horse racing industry unless action is taken by the UK government.

The SNP leader, a racing fan and former tipster, will present the Gold Cup at Ayr Racecourse and has also called for more urgency on the future ownership of the Tote.

The Horse Racing Levy Board, the mechanism which funds the sport, has seen income fall by almost 40 million, as many betting operations move offshore to avoid UK tax.

Mr Salmond said: "There have been no steps to address the reformation of the Horse Racing Levy Board, which has seen income slip from 115m three years ago to a projected 76.5m this year.

"Horseracing in Scotland is worth 213m to the economy and generates in excess of 60m for tourism - but if the levy income continues to slip at this rate, we could be looking at serious job losses across Scottish racing.

"The Westminster government has to act now to protect the second-biggest sport in the country and protect 18,600 full-time-equivalent jobs within its core industry."

The board collects a levy from betting profits to finance a range of activities, with more than half going on prize money.

A campaign has been launched within the industry calling for an overhaul of the levy system. Its falling income is a "major concern" for Scottish and British horse racing, Mr Salmond added.

He went on: "Like many sports, racing is having to ride the storm of economic turbulence and it is essential that the Westminster government act now."

The coalition government announced last week that it is to seek bidders for the Tote, the state-owned bookmaker, in the autumn.

It operates a pool-betting monopoly in the UK and passes on its profits to racing. A previous attempt to sell it off two years ago failed to secure a buyer.