UK GYMS – OVERVIEW
UK GYMS – OVERVIEW
PUBLIC SECTOR
PUBLIC SECTOR
WINDS OF CHANGE
In his interview on page 117, Alliance Leisure’s Tom Fairey discusses the urgency of the agenda created by devolution and LGR. He explains how: “For the individual local authorities set to join combined authorities, it’s being spoken about as a once-in-a-lifetime opportunity to undertake developments and regeneration projects. And so there’s an urgency to deliver schemes now.” He adds: “The impact for us as a business is that in the short term, there may be opportunities for quick wins.” Meanwhile, in his interview on page 127, Everyone Active’s Duncan Jefford outlines the detail of the agency model: “In March 2023, HMRC changed its guidance to local authorities, confirming that most supplies of leisure services by a local authority can now be treated as ‘non-business’. “When a local authority sells a leisure service – a gym membership, for example – it no longer has to charge VAT on that sale. The local authority is also able to recover the VAT it incurs on providing that service. “This decision rendered the provision of leisure services by local authorities more VAT-efficient than provision of that same service by organisations such as Everyone Active, because we aren’t able to treat leisure sales as non-business. “What we – and other similar organisations – have therefore done is develop an agency model. Instead of being a council’s contractor, we become its agent for the delivery of leisure services; in its leisure memorandum of understanding, HMRC has already accepted that leisure services can be provided as an agent. “Through this model, we benefit from the same non-business VAT efficiencies as local authorities. It does not apply to F&B or retail, but we can deliver fitness on an agency basis and it increases our profitability by 3–4 per cent. That’s a lot in a sector where margins are small.” “This really does come at a crucial time for all of us,” confirms GLL’s Peter Bundey in his interview on page 106.
The number of public gyms has declined slightly over the last 12 months, but there has been positive movement on other key metrics. Market value and membership have both reached all-time highs, while the public sector penetration rate has returned to its previous peak. There are now 2,475 public sector gyms across the UK – down 0.8% from 2,496 in 2024. Despite this drop, member numbers have increased by 4.5%, rising from 3.36 million to 3.51 million. The public sector’s total market value also surpassed the £1.5bn milestone for the first time, reaching £1.56bn – a year-on-year rise of £126m (8.8%).
Gyms
2,475
Members
3.51 m
Through the agency model, we benefit from the same non-business VAT efficiencies as local authorities
Market value
£1.56 bn
Meanwhile, public sector penetration climbed to 5.2% in 2025, up from 5% the previous year. This matches the highest rate on record, previously seen between 2014 and 2016, and hints at the possibility of a new all-time high by our next audit. Of the UK’s 2,475 public sector gyms, 45% are managed by a trust. Regionally, this model is most prominent in Scotland, where 64% of gyms are trust-managed. Wales follows with 47%, England with 42% and Northern Ireland with 21%. Meanwhile, across the UK, local authority in-house management accounts for 21% of public sector gyms; educational establishments manage 14% of sites; and leisure management contractors (LMCs) operate 9%. GLL remains the UK’s largest public sector operator by number of sites, with the trust running 191 gyms – down from 195 last year. SLM (Everyone Active), the UK’s leading leisure management contractor by number of sites, ranks second with 172 gyms (-3 vs 2024). No other public sector operators have more than 100 gyms. Between them, the top 10 public sector operators manage 745 gyms – up slightly from 742 in 2024. Over the 12 months to 31 March 2025, these operators added almost 100,000 members and saw their combined market value rise by £88m. Behind these statistics, a number of significant changes are afoot in the sector, from the welcome impact of a new agency model to devolution and local government review (LGR).
Average fee
Wherever infrastructure is created around new housing, I’d like to see the extension and refurbishment of existing leisure centres
£33.16
Penetration rate
Bundey also identifies potential new funding streams for the sector: “I’d certainly like to explore opportunities around section 106 funding and the Housing Infrastructure Fund. “Wherever infrastructure is being created around new housing developments, I’d like to see not just new facilities being built, but the extension and refurbishment of existing leisure centres and sports facilities. This is the cost-effective way to create modern, large-scale facilities that will benefit the whole community over the long term.”
5.2 %
102
103
STATE OF THE UK FITNESS INDUSTRY REPORT 2025
STATE OF THE UK FITNESS INDUSTRY REPORT 2025
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