With the Cheltenham Festival expected to attract 260,000 people next week, the town's MP Alex Chalk has welcomed a Government move to provide greater support for the horseracing industry.

Under the reform of the horserace betting levy, all gambling business that takes bets from consumers based in Britain on races held in this country will pay 10 per cent of their gross profits from racing, above the first £500,000 they make, to support the sport and the equine industry.

The levy will support funding for a range of areas including prize money, integrity, equine welfare, veterinary science and the mental and physical wellbeing of participants.

Alex Chalk said: "Betting Levy funding has fallen from £100 million in 2007 to £54 million per annum in 2016. This is a cause for concern.

"Returns to British racing's grassroots are the lowest of any major racing nation. This figure must be restored in order to keep the sport on a sustainable footing and attract ongoing further investment. It may be noted even a figure of £100m would leave UK racing lagging significantly behind their equivalents in other countries.

"It seems unfair that bets placed over-the-counter are subject to the Levy, yet the growing online betting market (comprising some 60% of bets placed in the UK) makes no such contribution. It is clear that the racing industry, and associated equestrian trade, is suffering as a result of this offshore loophole.

"Many businesses in Cheltenham benefit greatly from racing at our iconic venue. The principal four-day Festival Meeting in March brings in excess of £100 million to the local economy. A thriving and vibrant racing sector is crucial to the economy here in Cheltenham.

"I'm delighted that the Minister has listened to our concerns and has agreed to make these changes. It ensures a level playing field amongst gambling operators that are based in Britain and those that are offshore.

"This vital reform will help to safeguard the future of the UK's second largest sport and provide a sustainable platform for the future of this major employer and income generator here in Cheltenham."