As the UK struggles with soaring levels of physical inactivity, which cost the economy £20 billion annually, the fitness industry has issued a stark warning to the Government ahead of next week’s Budget.

Government urged against business tax increases

ukactive has written to Chancellor Rachel Reeves and party leaders, warning that any business tax rises for the sector could threaten national health and the economy. The letter highlights the scale of the UK health and fitness industry:

• Over 11.5 million members
• More than 600 million visits to gyms, pools, and leisure centres in 2024

The UK Health & Fitness Market Report 2025, published by ukactive with 4Global and Sport England and analysed by Deloitte, shows strong sector growth:

• Total revenue rose from £5.2 billion in 2023–£5.7 billion in 2024, an 8.8% increase
• Membership penetration reached 16.9%, driven by younger generations

Rising costs threaten services

Despite growth, the sector faces challenges:

• Rising operational costs, low investor confidence, and uncertainty over funding for ageing facilities
• Increased energy, utility, and employment costs have already affected service provision and recruitment
• Further tax increases could force operators to raise prices, reduce services, halt expansion, or close

ukactive warns that price increases would disproportionately impact disadvantaged communities, worsening health inequalities and limiting the sector’s contribution to national health and the economy.

Similar letters have been sent to opposition party leaders, and ukactive has briefed MPs over recent months. The organisation also requested additional measures in its Budget submission, including:

• Expanding the Cycle to Work scheme to cover gym memberships and fitness services
• Tax and regulatory reform
• Additional support for public leisure

Physical inactivity: a growing crisis

Public health statistics underscore the urgency:

• 2.8 million working-age people are currently out of work
• Workplace sickness totals 148.9 million working days, costing £103 billion annually
• Sport England’s Active Lives survey reports 25.7% of adults and 29.6% of children in England are inactive

The Moving Communities report highlights the growing role of gyms and leisure centres:

• Gym participation increased by 13% year-on-year
• Participation among under 16s rose by 21% and over 65s by 19%
• Gym visits in the most deprived communities increased by 7%

Physical activity: preventive healthcare and economic benefits

Regular exercise improves health outcomes and reduces the risk of long-term conditions:

• 40% lower risk of type-2 diabetes
• 35% lower risk of cardiovascular disease
• 30% lower risk of dementia
• 20% lower risk of some cancers

Sport England estimates inactivity costs the economy £20 billion annually through lost productivity, healthcare burdens, and reduced public finances. Grassroots sport and exercise contribute £36 billion each year through employment, volunteering, and infrastructure.

ukactive CEO calls for support

Huw Edwards, CEO of ukactive, said: “We urge the Chancellor not to put further pressure on our nation’s gyms, pools, and leisure centres at a time they are clearly needed more than ever. Rather than regressive steps, the Government should create a positive operating environment for the physical activity sector, given its unique value to population health and the economy. By promoting physical activity and backing the sector, the Government has a chance to address inactivity levels and create healthier, happier communities, which is vital for the economy.”

The stakes ahead

With the Budget scheduled for 26th November, the Government faces a balance between fiscal rules and investments in public health. ukactive stresses that protecting and investing in gyms, pools, and leisure centres is both an economic imperative and a public health necessity. Facilities in deprived areas play a key role in enabling inclusive participation, potentially saving billions while fostering community resilience.