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Gym Tax Timebomb: ukactive Says Budget Rises Could Shut Pools And Leisure Centres

People workout at the gym

ukactive has stepped into next week’s Budget debate with the bluntness the moment demands, warning the Chancellor that any fresh business tax rises would hit national health and the economy like a shanked tee shot. And with more than 11.5 million people relying on the sector each year, ukactive isn’t exactly whistling into the wind.

In a letter to the Treasury, the organisation lays out the simple truth: Britain’s health and fitness network — from the local pool that’s held communities together for generations to the gym that sees 6 am regulars marching in like clockwork — logged more than 600 million visits last year. It’s a system that works, and works hard. But according to ukactive, it’s now hanging on by its fingernails as rising costs and low investor confidence pile up.

Operators across the country have spelt it out. Soaring energy, utilities and staffing costs have already chipped away at what they can offer. The rise in employer National Insurance Contributions hasn’t helped either, and many told ukactive they’re past the point where they can soak up another hit. If operating costs are pushed higher again, prices go up, services drop, and some sites simply won’t make it.

gym closed sign

The letter to Rachel Reeves MP pulls no punches: any further tax increases will force operators’ hands. Prices will climb, widening health inequalities and putting disadvantaged communities at the back of the queue — at the exact moment physical activity is one of the few proven tools left to ease the country’s strain.

Opposition leaders have been sent the same message, and ukactive’s been spending recent months briefing MPs on the concerns of its members. The sector’s not begging for special treatment. It’s calling for clear, practical decisions from a Government that says it wants a healthier, more productive nation.

Beyond the immediate plea to avoid tax rises, ukactive’s Budget submission lays down a few constructive fixes: expand the Cycle to Work scheme to finally include gym memberships and fitness services; tidy up tax and regulatory rules; and throw meaningful support behind public leisure so old facilities don’t crumble before new ones are funded.

The timing isn’t random. The UK is staring down a grim reality: 2.8 million working-age adults are currently out of work, and workplace sickness has swallowed 148.9 million working days — a gut-punch worth £103 billion a year. Meanwhile, Sport England’s Active Lives survey shows a quarter of adults are classed as inactive, and almost a third of children get less than half an hour of activity per week.

Yet the Moving Communities report released last week paints a different side of the picture — one loaded with potential. Participation in gym activities has jumped 13% year-on-year. Under-16s are piling in with a 21% rise, over-65s aren’t far behind with a 19% surge, and participation is up 7% in the most deprived areas. It’s proof the sector works when people can afford to use it.

And the science is hardly a mystery. Regular activity slashes the risk of long-term conditions: type-2 diabetes drops by 40%, cardiovascular disease by 35%, dementia by 30%, and some cancers by 20%. The numbers speak for themselves.

Huw Edwards, CEO of ukactive, puts it plainly: “We urge the Chancellor not to put further pressure on our nation’s gyms, pools and leisure centres at a time they are clearly needed more than ever.

“Rather than regressive steps, the Government should create a positive operating environment for the physical activity sector, given its unique value to population health and the economy.

“By promoting physical activity and backing the sector, the Government has a chance to address inactivity levels and create healthier, happier communities, which is vital for the economy.”

The ask here isn’t complicated. Keep the sector standing so it can keep the country moving. That’s as traditional — and as forward-thinking — as public policy gets.

To read the full letter to the Chancellor, click here.

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