NEWS
Greater financial support and regulatory measures needed for physical activity sector
POSTED 28 Jan 2021 . BY Tom Walker
January and February are traditionally a vital period for gyms, as people look to start the year with a fitness regime Credit: Shutterstock.com/YanLev
The physical activity sector is in need of bespoke and substantial financial support in order for it to survive the COVID-19 pandemic, according to industry body ukactive.

Gyms, sports facilities and leisure centres across the UK have been forced to close their doors thanks to the latest lockdowns – and those in Tier 4 areas had already shut prior to Christmas.

January and February are traditionally a vital period for gyms, as people look to start the year with a fitness regime.

Among the measures which ukactive wants to see are a change in the VAT regime and a guarantee that business rates are put on hold beyond the current deadline of March 2021.

“Our sector needs a VAT rebate – resulting in an effective output tax of 10 per cent – an extension of the business rate holiday for physical activity and leisure providers beyond March 2021, and financial support for operators for back-dated rent which will be due once the moratorium ends," said Huw Edwards, ukactive CEO.

“Both public and private fitness and leisure operators will require much greater, tailored financial and regulatory support for their recovery, especially in light of the latest national lockdown, which comes at the worst possible time for gyms and leisure facilities which rely on January trade.

“Gyms and leisure centres throughout the UK will find it unsustainable to operate on zero income with this limited funding. The current measures do not go far enough, and as the length of lockdown is not yet determined, it makes it impossible to plan for when revenue will start to come in again.

“We are in dialogue with the Government to provide the latest impact modelling of this lockdown but the sector is on a cliff edge and more support needs to be given.”
RELATED STORIES
  UK gym industry calls for sector-specific government financial support


ukactive has called on the UK government to draft a new National Physical Activity Plan and provide further sector-specific financial protection for operators in the activity sector, to support the industry through the UK's third lockdown.
  ukactive: gyms and leisure centres must be allowed to operate in tier 4


Forcing gyms, health clubs and leisure centres to stay shut in tier 4 areas is unthinkable, according to industry insiders – especially if the lifting of these measures will have to wait until people have been vaccinated.
  Gyms close in south-east England for an initial ten days as new 'tier 4' is created


Gyms and leisure facilities in south-east England are to close from midnight tonight under a variety of new restrictions announced during an emergency press briefing this evening by prime minister, Boris Johnson.
 


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28 Jan 2021

Greater financial support and regulatory measures needed for physical activity sector
BY Tom Walker

January and February are traditionally a vital period for gyms, as people look to start the year with a fitness regime

January and February are traditionally a vital period for gyms, as people look to start the year with a fitness regime
photo: Shutterstock.com/YanLev

The physical activity sector is in need of bespoke and substantial financial support in order for it to survive the COVID-19 pandemic, according to industry body ukactive.

Gyms, sports facilities and leisure centres across the UK have been forced to close their doors thanks to the latest lockdowns – and those in Tier 4 areas had already shut prior to Christmas.

January and February are traditionally a vital period for gyms, as people look to start the year with a fitness regime.

Among the measures which ukactive wants to see are a change in the VAT regime and a guarantee that business rates are put on hold beyond the current deadline of March 2021.

“Our sector needs a VAT rebate – resulting in an effective output tax of 10 per cent – an extension of the business rate holiday for physical activity and leisure providers beyond March 2021, and financial support for operators for back-dated rent which will be due once the moratorium ends," said Huw Edwards, ukactive CEO.

“Both public and private fitness and leisure operators will require much greater, tailored financial and regulatory support for their recovery, especially in light of the latest national lockdown, which comes at the worst possible time for gyms and leisure facilities which rely on January trade.

“Gyms and leisure centres throughout the UK will find it unsustainable to operate on zero income with this limited funding. The current measures do not go far enough, and as the length of lockdown is not yet determined, it makes it impossible to plan for when revenue will start to come in again.

“We are in dialogue with the Government to provide the latest impact modelling of this lockdown but the sector is on a cliff edge and more support needs to be given.”



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