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Leisure Management - Relief Measures

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Relief Measures

Sports and physical activity industry bodies call for special measures to keep leisure facilities afloat

Huw Edwards, CEO, ukactive
All grassroots sport has ground to a halt due to the unprecedented lockdown measures
The UK's leisure centres, swimming pools and gyms were ordered to close on 23 March
Professional sports clubs are counting the cost of postponed and cancelled games
There are concerns over the future of the "vital infrastructure" provided by grassroots sport facilities
The leaders say financial help would allow companies bounce back quicker following the lockdown

Leading trade bodies representing the physical activity sector have called on the government to introduce "urgent additional measures" in order to keep leisure facilities afloat during the COVID-19 (coronavirus) pandemic.

The heads of ukactive, the Chartered Institute for the Management of Sport and Physical Activity (CIMSPA), and Community Leisure UK have written to chancellor Rishi Sunak, offering to work with the Treasury on the priorities for financial support designed to protect thousands of jobs, businesses and charities.

Gyms, leisure centres and other activity facilities were closed as part of a UK-wide lockdown on 23 March. PM Boris Johnson did, however, say people could continue to go out to exercise once a day – as long as they adhere to physical distancing measures in order to remain safe, in line with guidance from Public Health England.

In the letter to the Chancellor, the sector leaders highlighted the unique position and value of the physical activity sector – and its ability to contribute to the nation’s health.

"We want to work with you and your team to ensure the physical activity sector has the tools it needs to survive in this rapidly changing climate," the letter reads.

"Our gyms, leisure facilities and sports providers are on the frontline of the prevention agenda, contributing hugely to both our national wellbeing and productivity.

"We cannot allow the facilities at the heart of our communities to disappear.
"Figures show that public leisure alone is worth £3.3bn annually, having a huge impact on wellbeing (£2.4bn) and health (£715m), but findings also demonstrate benefits for wider social issues such as education and crime, shaping the future of children and young people, ensuring a productive workforce, tackling loneliness, supporting an ageing society, and providing deeper connections within communities. Throughout the coronavirus crisis our members have been working tirelessly to support the public to maintain active lives, supporting the nation through increasing pressures on both our physical and mental health, as our routines are disrupted.

"The significance of maintaining our physical and mental health cannot be underplayed in these circumstances, and the physical activity sector finds itself uniquely placed to offer support to people.

"If physical activity organisations are not supported to survive, it will be difficult for this vital infrastructure to be restored once the crisis is over – and a lengthy restoration process would have dire consequences for our society.”

The measures proposed by the sector bodies are:

  • Comprehensive salary payment support, as instituted in other European countries.

  • Rental/management fees reduction support, to reduce/cease rental payments.

  • For public sector operators, clarification on the responsibility of local authority clients and the non-payment of management fees as well as additional support with cash flow.

  • Making gym memberships tax deductible for a stipulated period. This would make it easier to regain memberships after the unsettled period, as well as possibly allowing facilities to hold on to current members.
    • In addition to this, the sector is looking for clarification on the processes for the following:

      • Clarity on the terms of loan provision, as six months is not feasible for the repayment of interest, given the low margins within the sector. It requests that the window is extended to 12 months.

      • Clarity on Business Interruption Insurance and the grounds for pay-outs, in addition to confirming the parameters in the new business interruption loan scheme.

      • Clarity on non-payment of VAT, National Insurance, pension and payroll contributions during the period of disruption.

      • Clarity on tailored financial support for self-employed physical activity professionals.

Originally published in Sports Management 2020 issue 4
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06 Apr 2020 issue 153

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