Betfred announced it has "no choice" but to withdraw its sponsorship of all five British Classics due to a recent tax increase outlined in the Budget. Fred Done, the company's chairman and co-founder, had previously indicated that sponsorships would be reconsidered if the Chancellor John Healey raised the machine games duty (MGD).

The affected events include:

• 1000 Guineas and 2000 Guineas at Newmarket
• Derby and Oaks at Epsom
• St Leger at Doncaster

Despite concerns that MGD would rise to 40 percent, it was increased from 20 percent to 25 percent. This decision led Betfred to claim that over 1,000 jobs were at risk in their shops. The company had recently taken on the Derby, Oaks, and St Leger sponsorship in 2023, and acquired the Newmarket Classics starting from 2025.

A Betfred spokesman expressed disappointment, stating, "Following successive tax rises for the betting industry... it is with great sadness that we have taken the difficult decision not to proceed with a three-year renewal of our sponsorship of the British Classics."

Amy Starkey, managing director of the Jockey Club's London Hub, shared her disappointment regarding Betfred's decision but acknowledged the challenges they faced. She emphasized that Betfred has been a passionate supporter of racing and expressed hope for future collaborations.

Currently, discussions are ongoing with other potential sponsors who align with the vision for both events.