Following protests from the hospitality industry UK chancellor, Rachel Reeves, is looking set to make a U-turn on proposed changes to business rates for pubs, however, this change has not yet been extended to health clubs, which are still facing higher bills from April.

In the November 2025 budget, Reeves scaled back the business rate discounts that have been in force since the pandemic from 75 per cent to 40 per cent and said there would be no discount at all from April. 

The government offered some relief by reducing the multiplier used to calculate business rates, but this still meant businesses would see huge rises, which would cause some to cease trading.

Alongside this, the rateable values of commercial property have been readjusted by the Treasury meaning higher bills for some businesses.

CEO of UK Active, Huw Edwards, has welcomed the fact that the government is taking another look at business rates and argues the health and fitness industry should also be given more support, saying: "Gyms, pools, and leisure centres are the driving force of physical activity in the UK, with over 600 million visits in the last year – taking pressure off the NHS and fuelling consumer spend, employment and high street renewal.  

“Instead of supporting this industry success story, the government has done the opposite and made these essential community facilities absorb two regressive budgets which have piled on operational costs and suffocated employment opportunities. 

 “The government has now recognised the reforms to business rates do not go far enough and is looking to make amends, but new support must extend to all impacted businesses, including fitness and leisure.  

“Fitness and leisure operators are telling us that without protection their business rates will rise by as much as 60 per cent, forcing many to increase prices for consumers at a time of growing health inequalities. 

"Failure to provide a business rates support package to gyms, pools and leisure centres will lead to higher prices, reduced services, redundancies and in some cases the loss of gyms from our communities.”