OPERATOR PERSPECTIVE
OPERATOR PERSPECTIVE
Ours is not a sector in turmoil, but it is a mixed bag economically. No-one can sugar coat the rising cost of providing services.
So, ours is not a sector in turmoil. There is a lot of positivity and a lot of opportunity. However, it is still a mixed bag economically, because no-one can sugar coat the rising cost of providing services, nor the way this plays into consumers’ pockets. Utilities remain hugely volatile. Costs of supplies and services are also going up, triggered by domestic issues in the economy and potentially now also by Trump- induced turmoil. We should not underplay the economic uncertainty that comes with Trump. It threatens the stability of the world we trade and work in and impacts all of our ability to forward-plan with confidence. There’s the significant rise in National Insurance contributions, with the next big one being water: huge cost increases are coming that will impact pools and with it, the public leisure sector especially. As we did with energy, GLL will create an internal project group to explore all the ways we might mitigate water cost rises, from economies in consumption to new cost-saving technologies.
Another big one this year is investment in our digital journey for digital outreach, to support the work already done by our fantastic community outreach teams. We’ve partnered with a digital library, for example, unlocking a wealth of books for those seeking to learn and improve their health and wellbeing. What are you seeing in the sector generally? There’s a lot of positivity, with consumers increasingly willing to invest in their health and wellness: a recent ukactive consumer survey showed that across age groups, 15 per cent of Brits named health and fitness a top priority for their disposable income; only 9 per cent referenced eating out and 5 per cent drinking socially. Meanwhile, the UK government has health and economic missions that play to our strengths. We must do more to prove our value, but we already make a huge contribution to the health of the nation and, with growing consumer demand, we’re also creating jobs and driving investor interest.
GLL is already speaking to other trusts about how we might work together in the new era of devolution
Where might investment come from? I believe our sector already knows the health impact it can have, both through prevention and intervention, but we must work harder to land this message in the right areas of government strategy. Our starting point is to collaborate and unify best practice to make a strong case to DCMS and the Department of Health – but we also have to help them take it to Treasury and show it makes financial sense too. Just as one example, 2024 research by Vitality estimated that workplace sickness costs the UK £138bn a year. Our sector could move things on significantly if government were to invest in us. Granted, government has economic challenges to balance, but just look at what we’re doing already, then think how much more we could do if some existing funds were reapportioned to our 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
Last but not least – although Sport England’s Moving Communities report clearly shows leisure centres to be far more successful at engaging and retaining people’s interest in physical activity than exercising elsewhere, alone or at home – the UK has a public sector building stock in need of investment. GLL is optimistic and stable at the moment: we’re seeing increased costs but also improved performance, so we aren’t under threat. However, there will be organisations that struggle in this climate. It’s why we’re so keen to share advice and information across the sector. In fact, working together is likely to become increasingly important in the new era of devolution. We are yet to see how this plays out, but we need to be thinking now about its potential impact on the national leisure landscape. Local authorities grouping together into broader organisations may want to retain a mix of leisure operators, but GLL is already speaking to other trusts about how we might work together if this is not the case.
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STATE OF THE UK FITNESS INDUSTRY REPORT 2025
STATE OF THE UK FITNESS INDUSTRY REPORT 2025
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