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UK Budget delivers good news on rates, but fails to set an ambitious agenda for the sector

UK Chancellor, Rachel Reeves, unveils the Autumn Budget
UK Active has applauded changes to business rates, but laments the lack of pro-growth measures for the sector
The sector’s potential to support the NHS was also ignored
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On unveiling the Autumn Budget, Chancellor Rachel Reeves said there would be no return to austerity and that she would cut NHS waiting lists, debt and the cost of living.

Headlines included prescription costs staying below £10, rail fares being freezed and increases to the national minimum wage and national living wage by £1,500 and £900 respectively.

Investment for 250 neighbourhood health centres was confirmed as a part of the commitment to cut NHS waiting lists and end the postcode lottery of healthcare access.

In response to the budget, Huw Edwards, CEO of UK Active, said: “Today the Chancellor repeated the government’s ambitions to take pressure off the NHS and grow the economy, but to achieve these it must go further in supporting the physical activity sector to play its fullest role.

“This budget falls short of backing our sector and recognising its important role in achieving the Government’s stated ambitions of cutting NHS waiting lists and growing the economy," said Edwards.

"We welcome plans to reform business rates with a permanently lower multiplier for leisure, retail and hospitality, as well as the decision not to introduce other major tax rises", he said.

UK Active has been lobbying on rates since at least 2019, so this move is welcome.

“Ahead of the budget, UK Active urged the Chancellor not to pile further pressure on our sector and damage its growth by increasing taxes on our members. We therefore welcome the response to reform business rates with a permanently lower multiplier for leisure, retail and hospitality, as well as the decision not to introduce other major tax rises," Edwards continued. “The cost increases announced across employment, pensions and smaller taxes will be detrimental for many organisations that are already enduring high operating costs in an increasingly complex tax system.

"This is particularly concerning given the high number of young people employed by our sector and the role our services play in reducing health inequalities," he said.

“Given the importance of physical activity for our national health and economic renewal, the budget represents a missed opportunity to provide a clear plan with pro-growth measures that leverage the expertise and influence of our members to help deliver results," said Edwards.

“The government must now work with UK Active and our members to co-create the sector plan for investment, growth and renewal that our nation deserves,” concluded Edwards.

Jonathan Carr-West, chief executive of the Local Government Information Unit said: “There was little in this budget to address the real risks facing local government: SEND, temporary accommodation, adult social care.

“Pots of money handed out to individual areas will, of course, be welcome – and we know that councils will use every pound to great effect. But these one-off allocations are no substitute for a fair, sustainable funding system that genuinely empowers local government.

“Most telling of all is the introduction of an additional levy on council tax – money that won’t support cash-strapped councils but will instead go straight back to Whitehall not the town hall. This budget treats councils as tax collectors for Whitehall: taking all of the political heat but getting none of the benefit.”

sugar tax

In other news, the government has announced that the soft drinks levy would be extended to cover more drinks, including sugary, milk-based drinks. Companies now have until 2028 to remove sugar or face a new charge.

Changes will apply the charge to pre-packaged milk-based and milk-alternative drinks with added sugar such as supermarket milkshakes, flavoured milks, sweetened yoghurt drinks, chocolate milk drinks and ready-to-drink coffees, many of which contain as much sugar as fizzy drinks, a move raised by chef and lobbyist, Jamie Oliver, in 2018.

The threshold is being lowered from 5g to 4.5g of sugar per 100ml. It is believed this could prevent almost 14,000 cases of adult obesity and 1,000 cases of childhood obesity and deliver almost £1 billion in health and economic benefits.

Between 2015 and 2024, the levy has cut sugar levels in affected products by almost half. Health and Social Care Secretary, Wes Streeting, says: “The levy has already shown that when industry cuts sugar levels, children’s health improves. So we’re going further.”

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On unveiling the Autumn Budget, Chancellor Rachel Reeves said there would be no return to austerity and that she would cut NHS waiting lists, debt and the cost of living.
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