Gyms plead for government aid as fitness firms feel weight of Omicron
Gym bosses have pleaded for government help after Omicron has caused attendance numbers at exercise classes to plummet in recent weeks.
A work from home directive and scientists’ messaging to avoid socialising in the weeks before Christmas has caused people to shun fitness firms, one boss told CityA.M.
While pubs and restaurants are eligible for a £6,000 grant to help them through the festive period, the gym sector feels neglected and has called for inclusion in support measures including VAT reductions.
The government said it had announced £100m in additional grants funding for councils to distribute to businesses that needed it.
Sandy Macaskill, co-founder of Barry’s UK, said he has been forced to temporarily close two exercise studios, in St Paul’s and Canary Wharf, after decreasing attendance levels.
At a site in Shoreditch there have been just under 100 people coming to classes each day, compared to 500 at the same point last year, Macaskill said. This marked a 60 per cent drop on 2019 levels.
He told CityA.M.: “I don’t think the government has really thought this through. It’s just insane, the amount of businesses going to the wall and they are helping people stay fit and healthy at the time of a national health crisis.”
Macaskill wants to see a VAT reduction for his sector introduced and said it was “inexplicable” that gyms had been excluded while hospitality received a five per cent rate for most of the pandemic.
January concerns
Reports of additional Covid restrictions being introduced after Christmas were “very concerning”, Macaskill said.
“January is traditionally the time when everyone starts getting fit again, they start a journey from January to the summer. It’s a launchpad for our industry.”
His warnings come as Huw Edwards, CEO of sector organisation ukactive, urged the Chancellor to reconsider support measures for leisure firms.
“The decision, following hours of confusion, by the Government to omit gyms, pools, and leisure centres from access to new grant support within this financial package is shameful,” Edwards said.
“This is a health crisis, so to dismiss calls for support from these essential organisations that improve people’s health is inexcusable and will lead to our nation’s physical activity levels – which are already in a lamentable state – becoming even worse.”
The trade body called for additional support including, VAT relief in line with other sectors, furlough support, and extensions to business rates relief and the National Leisure Recovery Fund.
A HM Treasury spokesperson said: “We understand gyms and sports centres may be impacted by Omicron, which is why we announced £100m in additional grants funding yesterday for councils to distribute to businesses most in need in their areas.
“This takes the total amount of available unspent grants funding to £350m, and comes on top of 75 per cent business rates relief over the year, the recovery loan scheme, Time to Pay and the reintroduced Statutory Sick Pay Rebate Scheme.”