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being built – resident-only gyms in apartment blocks, for example, or limited new community centres – 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. Meanwhile, at an individual level, I’d like to see tax deductible gym memberships, giving individuals a financial incentive to make better lifestyle choices. It makes real financial sense: as people become healthier and fitter, they will ultimately cost the NHS less. Are there any green shoots around funding? In February, the Ministry of Housing, Communities and Local Government issued a revised guidance note to local authorities, allocating an additional £502m to the public sector for 2025–26 specifically to lessen the initial
hit of increased National Insurance (NI) contributions. Local authorities can use this money whether they provide services directly themselves or have partners delivering public services on their behalf – that is, they can financially ease the transition to higher NI costs for partners delivering key services. CLUK is starting to report examples of this funding finding its way to leisure trusts, so we’ve raised it with our partners and we’re hoping for further dialogue. Then there are VAT agency arrangements, with their tax efficiencies that could bring more money into the leisure, physical activity and cultural ecosystem. We already have a number of agency agreements in place, which could help fund future investment and/or help us meet the rising costs of service. Especially with the broad range of services and facilities the public sector provides, this really does come at a crucial time for all of us.
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An additional £502m means local authorities can financially ease the NI transition for partners delivering key services
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STATE OF THE UK FITNESS INDUSTRY REPORT 2025
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