ukactive has written to the Chancellor and party leaders to warn of the danger to national health and the economy if any business tax rises are introduced for the sector at next week’s Budget.
The letter to the Chancellor underlines the size and scale of the UK’s health and fitness sector which serves more than 11.5 million members and recorded over 600 million visits to gyms, pools and leisure centres last year (UK Health & Fitness Market Report 2025).
The letter states that while overall the sector has seen strong growth, the ability of facilities to meet growing public demand and need is being threatened by rising operational costs, low investor confidence, and uncertainty on funding to replace ageing facilities, especially swimming pools.
Operators have told ukactive that for many facilities the combination of rising energy, utility and employment costs have already impacted service provision and recruitment. Many say that if operating costs are increased again following the rise in employer National Insurance Contributions in the last Budget, it will force them to increase prices, reduce services, end expansion plans and possibly close.
The letter warns Rachel Reeves MP that any further tax increases will leave many operators with no option but to increase prices, which will worsen health inequalities by having a disproportionate impact on disadvantaged communities – limiting the sector’s ability to improve the nation’s health and wellbeing, and play its fullest role in growing the economy.
Similar letters have been sent to the opposition party leaders, highlighting the key role of the sector in addressing the Government’s biggest challenges, and ukactive has also been briefing MPs on the concerns of its members over recent months.
Alongside urging the Government not to raise taxes on business, ukactive’s official submission to the Budget requested further measures to boost the physical activity sector, including expansion of the Cycle to Work scheme to include gym memberships and other fitness services, tax and regulatory reform, and additional support for public leisure.
Today’s call comes against a backdrop of poor public health and physical inactivity, with 2.8 million people of working age currently out of work and workplace sickness reaching 148.9 million working days – costing the economy £103bn a year.
Sport England’s Active Lives survey shows that over a quarter (25.7%) of adults in England are classed as inactive (meaning they do less than 30 minutes of physical activity per week) along with almost a third (29.6%) of children.
New data published last week in the Moving Communities report shows the growing importance of the sector’s facilities and services. Participation in gym activities has increased by 13% compared to last year – the second-largest increase in the number of visits by activity type.
The report shows that the increase in gym activities was driven by growing participation among under-16s, (increasing by 21%) and over-65s (by 19%), as well as a 7% rise among people living in communities with the highest levels of deprivation.
Physical activity and regular exercise have been proven to improve health outcomes and reduce the risk of long-term health conditions and illnesses, including a 40% reduced risk of type-2 diabetes, cardiovascular disease (by 35%), dementia (by 30%) and some cancers (by 20%).
Huw Edwards, CEO of ukactive, said: “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.”
To read the letter to the Chancellor, click here.
