UK Active renews calls for VAT cuts to offset increases in energy costs
Lobbying is gearing up in advance of the Spring Budget this week, with UK Active calling on the government to support the sector in tackling increases in energy bills.
In a letter to the Chancellor, CEO, Huw Edwards, warned that without support, many operators could be forced to increase prices, reduce services or – in the worst scenario, temporarily close facilities.
To help lessen the impact, the industry body is calling on the government to provide support in two key areas.
The first is to provide the sector with a VAT exemption – support that was provided to other sectors such as hospitality and tourism earlier in the pandemic, but which has so far eluded the activity sector.
The second is for local and central governments to work with public sector leisure operators to address the short-term financial pressures they face – exacerbated by running swimming pools – and come up with a long-term strategy to keep them open.
Edwards said: “The government should be extremely concerned about both the health and economic impact of the energy crisis on fitness and leisure operators.
“Rising energy costs will disproportionately impact our sector – particularly larger, energy-intensive gyms and leisure centres with swimming pools – which are now at risk.
“Our members will want to avoid passing on these cost pressures to their customers, especially given the rise in the cost of living, but this might become unavoidable."
UK Active estimates that combined gas and electricity costs for 2022 could increase by up to 100 per cent when compared to bills paid three years ago in 2019 – the last full operating year, pre-pandemic – a hike that could threaten services and Levelling Up ambitions said Edwards.
This estimate is based on evidence gathered from operators across the public and private sectors.
In a separate survey of its public leisure trust members, Community Leisure UK revealed an expected average energy bill of £3.2m per organisation in 2022, which would represent a 113 per cent increase over the last three years if compared to an average cost in 2019 of £1.5m.
CLUK also found that due to the high energy consumption of swimming pools, there would need to be a subsidy of £5 per visit in order to meet rising operating costs for 2022-23.
UK Active said the energy crisis has hit the fitness and leisure sector at a time when facilities are still recovering from major losses incurred during forced closures and reduced footfall caused by the pandemic.
Edwards also flagged up the upcoming Commonwealth Games, saying “We don’t want to see a situation where vital community facilities continue to struggle to operate while we prepare to host the Commonwealth Games this summer.
"Such a situation would no doubt cast a shadow over the Games, raising difficult questions with regards the legacy value of hosting such an event.”
Liz Terry, editor of HCM said: "This sudden increase in the price of oil and gas must drive an absolute commitment right across the sector to investing in non-carbon generating energy sources.
"We want to see the industry lobbying for funding to convert gas guzzling leisure centres into sustainable facilities through the use of things such as groundsource and airsource heat pumps, locally generated energy and through a reduction in energy need through the use of better building management systems.
"I fervently hope this global energy crisis will inspire everyone in the sector to start pushing in the right direction at a much more rapid pace so that even if financial support of some kind is needed in the short term, in the medium term we become self-sufficient for power.
"It's time for the sector to really galvanise and go sustainable and we look to industry leadership right across the sector to make this happen with all possible haste."
UK Active Huw Edwards energyUK government must drive through plans to build fitter, stronger nation, says Huw Edwards
Consumer demand for health clubs returning to normal, but 'January jump' delayed by Plan B
FEATURE: Sustainability – The carbon crisis
BIG unveils Eve Music Hall as Croatia venue nears completion
Bob Rogers hands BRC to long-serving leadership team
Wellness care hospital opens in Vilnius with innovative spa and hospitality concept
Universal and Puy du Fou projects point to rise of Oxford–Cambridge corridor
A proposed Puy du Fou development near Bicester and Universal Destinations and Experiences’ planned resort in Bedford are emerging as part of a wider transformation of the Oxford–Cambridge Growth Corridor into a major centre for UK leisure and tourism investment.
For years, the corridor has been associated primarily with science, technology, housing and university-led economic growth. However, the clustering of large-scale visitor attraction projects along the
All-inclusive eco-wellness development Auko to open near Vietnam’s Son Doong caves
Shedd Aquarium upgrades its visitor experience with new Immersion Theater
Shedd Aquarium has opened the Immersion Theater developed in partnership with SimEx-Iwerks, as part of a wider strategy to enhance the guest experience and create additional revenue opportunities.
The attraction has transformed the aquarium’s Phelps Auditorium into a multi-sensory venue combining panoramic projection, environmental effects and interactive technology.
A new pre-show area allows visitors to engage with augmented reality marine animals before entering the
Mandarin Oriental announces standalone Mansions-branded residences for Abu Dhabi
MCR is planning a luxury hotel for London's BT Tower
Joy as a radical act: Yinka Ilori launches solo exhibition celebrating the rebellious power of spreading happiness
Work gets underway on Madrid's €800 million leisure complex
Work is underway in Madrid on one of Europe’s most significant multi-functional complexes, combining sport, entertainment, culture and education.
The €800 million initiative to regenerate the former Olympic Aquatic Centre in the north-east of the city, next to the Riyadh Air Metropolitano stadium, is being led by Barsento – a joint venture between Live Nation Entertainment, Oak View Group and Atlético de Madrid. The project will
Therme Manchester reveals 90:90 strategy – 90 per cent of the UK population within a 90-minute drive of a Therme
Four Seasons’ Naples Beach Club opens 2,800sq m Sanctuary spa inspired by indigenous Calusa people
Orient Express Corinthian to host Ocean Rebirth wellness retreat in collaboration with Guerlain
Famed London nightclub, Tramp, launches Tramp Health
First look: Miraval opens on the Red Sea in Saudi Arabia
Hainan Science Museum by Ma Yansong, opens in China
A new science museum has opened to the public in Haikou after attracting more than 350,000 visitors during a four-month soft opening period.
Designed by Ma Yansong and his practice MAD Architects, the Hainan Science Museum is located on the edge of Wuyuan River National Wetland Park and has already recorded peak attendance of more than 5,800 visitors in a single day.
Commissioned by
Zannier Île De Bendor launches with design by Hardel Le Bihan Architectes
Sæl Spa readies for launch in London: “a modern British sanctuary”
Immersive art bathhouse Submersive announces debut location in Austin
Construction begins on regenerative wellness destination The Shenandoah Nature Resort
Royal Caribbean reveals record-breaking cruise ship
V&A East opens in London
David Geffen galleries open at LACMA
New venue The Lands by Capella includes a longevity centre to complement sister hotel Capella Sydney
World of Frozen launches at Disneyland Paris
Pical Resort by Valamar reveals first Croatian spa under the ESPA brand
Mandarin Oriental creates end-to-end Egyptian journey with two new hotels and first-ever luxury river cruise
Designers Mendil + Meyer launch new division called Lām Concepts for strategic wellness projects
Wilderness Bisate in Rwanda reveals brand’s second Sanctuary spa
4a Architekten shares details of wellness extension at Salinarium Bad Dürkheim Thermal Spa
Designed to restore neglected land and renew the identity of Iraq’s capital city, Baghdad Sustainable Forests promises a new way of living surrounded by nature. Gensler’s Ian Mulcahay tells us why he thinks the project could become a model for the repair and enhancement of urban centres




















