UK fitness industry overlooked in business rate relief U-turn

Sector representative body, UK Active, has expressed frustration that the UK government has overlooked the health and fitness industry in a U-turn over increases in business rates.

On 27 January it was announced that pubs and music venues will receive a 15 per cent discount on their business rates from April and will not see increases for two years. The government has also promised to review how pubs are assessed by the Valuation Office Agency ahead of the next revaluation of premises in 2029.

This move is in response to a backlash from the hospitality industry and representation by the Institute of Hospitality led by chair, Kate Nicholls.

Chancellor, Rachel Reeves, has said “the government listens when people raise concerns”, while Treasury Minister, Dan Tomlinson, has described pubs as being the cornerstone of communities. 

Meanwhile, some health and fitness operators are facing rate rises of up to 60 per cent in April. 

The situation has echoes of the pandemic when pubs opened before health clubs and people were incentivised to go to them with the Eat Out to Help Out scheme, which was later found to have been a COVID super-spreader event.

Huw Edwards, CEO of UK Active, said: “Health and fitness clubs see 600 million visits a year, but the Chancellor’s decision completely undermines this industry success story. 

“In a time of growing health inequalities, these facilities have taken pressure off the NHS and helped to grow employment and high street renewal. 

“This announcement takes a narrow view of the support required by businesses, ignoring the immediate pressure facing fitness and leisure facilities across the UK.  

“The Chancellor seems to have forgotten that gyms, pools and leisure centres were also closed during the pandemic and without further protection operators have told us their business rates will rise by as much as 60 per cent. This will force many to increase prices for customers, heightening the risk of reduced services, redundancies and in some cases the loss of gyms and pools from our communities entirely. 

“These essential community facilities [are already facing] the impact of two regressive Budgets which have piled on operational costs and suffocated employment opportunities. 

“We need an immediate package of support which is inclusive of fitness and leisure facilities or the Government will damage this sector and the health of the nation.