Betfred owner Fred Done has said his company will end nearly a decade of sponsorship of rugby league, a sport closely associated with Prime Minister Andy Burnham, and has warned it may also withdraw support for horseracing if the government pushes ahead with further gambling taxes in October's Budget. Done said axing the rugby league deal "breaks my heart" but argued the industry cannot absorb further tax rises after Rachel Reeves nearly doubled online gaming duty in last year's Budget. The move piles pressure on Burnham and Chancellor John Healey, given Burnham's personal ties to the sport, and highlights wider tension between the government and the betting industry over tax policy.

Burnham, a Leigh Leopards season-ticket holder and former Rugby Football League president, has called grassroots rugby league a "big priority" for his premiership, while Done and his brother Peter topped this year's Sunday Times Tax List after paying £400 million to the Exchequer. Done warned that any rise in machine gaming duty this autumn would cause a "bloodbath", forcing Betfred to close 495 shops and cut 2,475 jobs, and said the firm could also walk away from its lead sponsorship of horseracing's British Classics, including the Derby and the Oaks. The warning follows calls from former Labour prime minister Gordon Brown to raise machine gaming duty to fund a fuel bill support scheme; the Treasury said the Chancellor remains focused on backing jobs and growth while meeting fiscal rules.