Addressing physical inactivity and getting people moving more is important for improving health outcomes, reducing demand on the National Health Service, and supporting economic growth.

The leisure and fitness sector play an important role in supporting the Government’s sickness to prevention shift through providing affordable and accessible opportunities for people to increase their activity levels.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26.

Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.

The Government recognises the importance of gyms and leisure facilities, which are great spaces for people of all ages to stay fit and healthy, and play an important role within communities.

We would encourage independent gyms to engage with Sport England’s Moving Communities platform, which gathers data on the performance of leisure facilities and their contribution to getting communities active.

At the Budget, the Valuation Office announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties.

The Government has introduced new permanently lower multipliers for eligible retail, hospitality and leisure properties. These new multipliers are worth nearly £1 billion per year and benefit over 750,000 properties, including gyms and fitness centres.

Overall, the Government has put in place a £4.3 billion support package, which protects against ratepayers seeing large overnight increases in bills.

As a result, over half of ratepayers see no bill increases this year, including 23 per cent whose bills go down. Most properties seeing increases have them capped at 15 per cent or less this year, or £800 for the smallest properties.

HM Treasury Ministers and officials have regular discussions with representatives from across the retail, hospitality, and leisure sectors, including gyms and leisure centres, to understand the impact of business rates on the sector’s financial sustainability.

At the Budget, the Valuation Office announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties.

The Government has introduced new permanently lower multipliers for eligible retail, hospitality and leisure properties. These new multipliers are worth nearly £1 billion per year and benefit over 750,000 properties, including gyms and fitness centres.

Overall, the Government has put in place a £4.3 billion support package, which protects against ratepayers seeing large overnight increases in bills.

As a result, over half of ratepayers see no bill increases this year, including 23 per cent whose bills go down. Most properties seeing increases have them capped at 15 per cent or less this year, or £800 for the smallest properties.

HM Treasury Ministers and officials have regular discussions with representatives from across the retail, hospitality, and leisure sectors, including gyms and leisure centres, to understand the impact of business rates on the sector’s financial sustainability.

At the Budget, the Valuation Office announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties.

The Government has introduced new permanently lower multipliers for eligible retail, hospitality and leisure properties. These new multipliers are worth nearly £1 billion per year and benefit over 750,000 properties, including gyms and fitness centres.

Overall, the Government has put in place a £4.3 billion support package, which protects against ratepayers seeing large overnight increases in bills.

As a result, over half of ratepayers see no bill increases this year, including 23 per cent whose bills go down. Most properties seeing increases have them capped at 15 per cent or less this year, or £800 for the smallest properties.

HM Treasury Ministers and officials have regular discussions with representatives from across the retail, hospitality, and leisure sectors, including gyms and leisure centres, to understand the impact of business rates on the sector’s financial sustainability.

Addressing physical inactivity and getting people moving more is important for improving health outcomes, reducing demand on the National Health Service, and supporting economic growth.

The leisure and fitness sector play an important role in supporting the Government’s sickness to prevention shift through providing affordable and accessible opportunities for people to increase their activity levels.

The positive impact of community sports and physical activity is clear, with Sport England research showing its social value is responsible for £15.9 billion of overall healthcare net savings accrued through the prevention of a range of chronic diseases.

The Government is acting to support more people to get active wherever they live through investing £98 million in the Multi-Sport Grassroots Facilities Programme in 2025/26 to support facilities across the whole of the United Kingdom.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.

The Government keeps all taxes and reliefs under review.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.

The Government keeps all taxes and reliefs under review.

Addressing physical inactivity and getting people moving more is important for improving health outcomes, reducing demand on the National Health Service, and supporting economic growth.

The leisure and fitness sector play an important role in supporting the Government’s sickness to prevention shift through providing affordable and accessible opportunities for people to increase their activity levels, with public leisure services key in how local authorities fulfil their public health responsibilities within communities.

The positive impact of community sports and physical activity is clear, with Sport England research showing its social value is responsible for £15.9 billion of overall healthcare net savings accrued through the prevention of a range of chronic diseases.

Alongside the Department for Work and Pensions, we are expanding access to evidence-based physical activity interventions to adults with musculoskeletal conditions in the community by leveraging the leisure and fitness workforce to help improve mobility, reduce pain and fatigue, and promote wellbeing, supporting them to get into and remain in work.

Addressing physical inactivity and getting people moving more is important for improving health outcomes, reducing demand on the National Health Service, and supporting economic growth.

The leisure and fitness sector play an important role in supporting the Government’s sickness to prevention shift through providing affordable and accessible opportunities for people to increase their activity levels, with public leisure services key in how local authorities fulfil their public health responsibilities within communities.

The positive impact of community sports and physical activity is clear, with Sport England research showing its social value is responsible for £15.9 billion of overall healthcare net savings accrued through the prevention of a range of chronic diseases.

Alongside the Department for Work and Pensions, we are expanding access to evidence-based physical activity interventions to adults with musculoskeletal conditions in the community by leveraging the leisure and fitness workforce to help improve mobility, reduce pain and fatigue, and promote wellbeing, supporting them to get into and remain in work.

The government is committed to supporting UK SMEs, including those in the leisure sector, through the Small Business Plan - the most comprehensive package of support for SMEs in a generation.

This includes legislative reforms to tackle late payments; unlocking billions of pounds in finance; removing unnecessary red tape; revitalising High Streets and boosting digital and AI adoption among small businesses.

For the first time, DBT has integrated its support for businesses in a single, accessible place – the Business Growth Service – to help firms start, scale and succeed. UK businesses can access our wide range of support via business.gov.uk.

The government is committed to supporting UK SMEs, including those in the leisure sector, through the Small Business Plan - the most comprehensive package of support for SMEs in a generation.

This includes legislative reforms to tackle late payments; unlocking billions of pounds in finance; removing unnecessary red tape; revitalising High Streets and boosting digital and AI adoption among small businesses.

For the first time, DBT has integrated its support for businesses in a single, accessible place – the Business Growth Service – to help firms start, scale and succeed. UK businesses can access our wide range of support via business.gov.uk.

Pubs rents in business rates valuations are analysed differently to some other sectors. While most hospitality and leisure properties are valued by comparing the size of the property, pubs are valued by comparing their turnover potential. Industry bodies have highlighted concerns with how costs are accounted for in this methodology, particularly during periods of high inflation. The Government agrees this needs to be looked at and is therefore launching a review which will explore how pubs are valued for business rates. In the meantime, pubs are being provided with additional support.

Independent gyms and fitness centres will continue to benefit from the wider £4.3 billion support package announced at Budget, which protects against ratepayers seeing large overnight increases in bills.

The Government has also introduced new permanently lower multipliers for eligible retail, hospitality and leisure properties. These new multipliers are worth nearly £1 billion per year and benefit over 750,000 properties, including gyms and fitness centres.

As a result, over half of ratepayers see no bill increases this year, including 23 per cent whose bills go down. Most properties seeing increases have them capped at 15 per cent or less this year, or £800 for the smallest properties.