business plan and budget guide 2017-2019 · business plan 2017-2019 key initiatives what: enhance...

1© British Horseracing Authority

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



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.



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



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



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.

1

2

3

1. Equine welfare leadership:Toprovideequine

welfareleadership.



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.

1

2

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.

3



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.

1

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.

5



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.

7

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.

1

2

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.

3



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.

5

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.

1

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.

2



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.

1

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.

2



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.

5



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.

1

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.



What: To build on the reward and recognition initiatives already started in 2016.

In 2017, we will:

LaunchtheSalaryandGradingStructure

Workwiththeleadershipteamtofurtherdeveloptheorganisation’sapproachtorecognition

Ensuretheexistingbenefitspackagecontinuestodeliverouraspirationstoattractandretaingoodtalent,is

affordableandatleastinlinewithcomparableorganisations.

4

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.

1

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.

3



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.

2

What: To develop and agree the future approach to Racing Administration.

In 2017, we will:

Researchanddevelopablue-printforfutureracingadministration

PresentareporttotheBHABoard,includingoptionsandrecommendations

Createanimplementationplan.

3



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



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.



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



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.

business plan and budget guide 2017-2019 · business plan 2017-2019 key initiatives what: enhance...

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