ukactive warns of budget’s ‘devastating impact’

The Labour government’s Autumn Budget poses a threat to national health, if the physical activity sector does not receive tailored support following the increased costs announced in the budget.

Physical activity body, ukactive, has written to the Chancellor, Rachel Reeves, to demonstrate the “devastating blow” the budget will have on the sector and to urge the Government to offset this with measures to support growth.

The letter warns of the major and lasting impact on national health and wellbeing, jobs and growth, due to the growing costs facing fitness and leisure facilities and providers of all types and sizes.

Based on sample evidence from across ukactive’s membership, the letter details the combined impact of the 35% rise in business rates, the increase in National Insurance Contributions, and the reduction in the threshold at which employers start to pay National Insurance (from £9,100 to £5,000 per year per employee) – on top of the uplift to the National Living Wage. Larger operators on both the public and private side of the physical activity sector estimate that these changes will result in a 10% increase in payroll costs, which one operator said could mean a 5% reduction in staff numbers – threatening hundreds of jobs.

ukactive CEO, Huw Edwards, said: “Across our sector, large private providers, public leisure operators and independent gyms are reporting that the additional costs have forced them to abandon plans for new facilities, halt recruitment or begin to reduce hours and make redundancies.”