Latest findings could see 40% of councils lose leisure facilities by next year

Forty per cent of councils are at risk of losing their leisure centres and swimming pools within five months – or seeing services rationalised – due to the sector’s growing energy crisis, industry leaders have warned.

New figures from ukactive predict that without government intervention, large numbers of public sector leisure facilities are unlikely to make it through to next spring, with service restrictions and facility closures already growing across the UK. ukactive’s survey was sent to all UK public sector leisure operators within ukactive’s membership, with the number of respondents representing more than a third of all UK leisure centres and swimming pools.

A new consultation with national public leisure operators asked ukactive members to risk assess the current threat to their facilities.

The findings show:

• 40% of council areas are at risk of losing their leisure centre(s) or seeing reduced services at their leisure centre(s) before 31 March 2023.
• Three quarters (74%) of council areas are classified as ‘unsecure’, meaning there is risk of the closure of leisure centres and/or reduced services before 31 March 2024.

Industry leaders are calling for immediate support to avoid significant closures – support that cannot wait until the outcome of the Energy Bill Relief Scheme review from the Department for Business, Energy and Industrial Strategy (BEIS), which will not be implemented until April 2023.

They are calling on the government to intervene straight away and work with local authorities and facility operators to find a short-term solution that supports discussions on the long-term future of the services provided to communities by public leisure facilities.

This would complement the wider support needed from the BEIS review for the whole sector (both public and private operators), including an extended energy price guarantee, VAT relief, business rates holiday and local government grants.

Gyms, swimming pools and leisure centres are disproportionately affected by rising energy costs, given their high energy intensiveness, and therefore remain highly vulnerable despite the broad support provided for all businesses.

ukactive’s evidence shows that operators face bills up to 200% higher this year compared to 2019 (the last normal operating year), with costs set to grow by up to 240% next year.

While most public leisure operators say they are working constructively with their local authorities to find solutions, the reality is council budgets are under growing pressure and urgent, targeted support will be required from central government.

Huw Edwards, ukactive CEO, said: “We are now seeing daily announcements of public sector leisure facilities either restricting services, at threat of closure, or closing permanently due to the energy crisis.
"The Energy Price Guarantee – in place until March 2023 – has avoided catastrophic energy prices across all sectors for the moment, but it was never a silver bullet, and this is now being seen in parts of our sector, especially in facilities that run swimming pools.

“The UK cannot afford our new projections on restrictions and closures to happen, hence the need for urgent action now.”

ukactive has also conducted consumer polling with Savanta ComRes, which found the cost-of-living crisis is causing concern among consumers about their physical activity levels.

The polling shows:

• 43% of respondents said the rising cost of living will have a negative impact on their ability to participate in sport and exercise.
• One in five (20%) said this would be a ‘large negative impact’, which will reduce their physical activity a lot.

The combination of energy bills and threat to consumer spending mean that many essential frontline community health services could disappear from cities, towns and villages across the nation.

Councillor Gerald Vernon-Jackson, chair of the LGA’s Culture, Tourism and Sport Board, said: “This research reveals the precarious future of our leisure services, which have a critical role to play in helping our communities recover from Covid-19, both physically and mentally, and tackle issues like obesity, heart disease and diabetes, reducing the burden on the NHS and social care.

“Councils are working incredibly hard to prevent community facilities from closing and understand that many people are facing rising individual costs, so have no desire to increase prices or adjust opening hours if it can be avoided. But rising energy costs pose a very real and significant issue for the sector.

“The government must use the upcoming Autumn Budget to stabilise local government funding and invest directly in supporting the leisure sector, as was done during the pandemic through the £100m National Leisure Recovery Fund. Without sufficient support, councils will be forced to make difficult decisions about whether new facilities open, and whether existing centres are forced to close.”

Jane Nickerson, Swim England CEO, said: “Pools and leisure centres are vital parts of the community, improving the health and wellbeing of people of all ages.

“They help reduce pressure on the NHS and social care system, saving more than £350m a year – as well as being a place where people of all ages can learn a skill that could one day save their life. However, they are particularly vulnerable to the rising energy prices as we are seeing now with increased closures and service reductions.

“Our fear is that more than 100 pools are under threat in the next six months. That would be a devastating blow for the millions who rely on being active in the water for their physical and mental health. Without additional support, the situation will only deteriorate further which would be an absolute tragedy.”

Case study

Freedom Leisure says bills for just three of its sites alone have soared by more than £1m a year since 2019. Even under the Energy Bill Relief Scheme, one Freedom Leisure pool has seen its bill go from £180,000 per year to more than £600,000 per year.

Freedom Leisure is not alone and has now taken the tough decision to temporarily close sites in Milton Keynes, Bucks, and Rye in Kent, warning further closures will be inevitable unless more support is given.

Statistics for leisure professionals to share

• Fitness and leisure facilities represent the engine room of physical activity levels in the UK, with fitness and swimming ranked only behind walking for helping people to achieve the recommended levels of activity, which are 150 minutes of moderate-to-vigorous activity a week, according to Sport England.
• Evidence from Sheffield Hallam University and Sport England shows that physical activity and sport contributes an estimated £72bn in social value and is worth £13bn to the economy annually, bringing growth to high streets and providing 585,000 jobs, including about 300,000 in gyms and leisure centres.
• Two million children learn to swim using leisure centres every year, according to Swim England, and 66% of cancer prehab and rehab services are provided in leisure centres, says Liverpool John Moores University – just two examples of the essential role played by the sector in supporting community health, safety and wellbeing.
• Physical inactivity is the fourth largest cause of death and disability in the UK (PHE) and it is estimated that the sector’s services generate £450m in savings for the NHS by preventing 30m GP visits, according to data and research firm 4Global.
• More than 17m people use the sector’s facilities to support their physical and mental health, with services including bespoke programmes for older citizens and those with health conditions, ethnically diverse communities, disabled people, and pregnant people, according to Sport England.

To support the sector, please email or write to your MP with your concerns.

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