“Fitness is big business. With potential preventative savings in the billions and an incoming government focused on”
As the dust starts to settle on the 2024 election, we hope you can put up with one last mention of politics as we take a look into what the rise of a new Labour government means for independent gym owners.
After the gauntlet of elections between 2015 and 2019 that prompted Brenda from Bristol to famously say ‘not another one’, the 2024 election results felt like an evening a long time in the making.
With the Conservative party at record low of 121 MPs, the Lib Dems shattering their previous record at 72 and Labour polling at a respectable (but not record breaking) 412 MPs, it is safe to say the parliamentary make-up of the United Kingdom shifted massively overnight.
But what does this mean for the gym owners? And what does this political landslide hold for the fitness industry at large?
We are no strangers to covering the effects of political machinations on our industry, from Brexit through to Covid-19 and beyond, we have been here providing the 101 on what the UKs political situation means for all business owners, facility managers and staff within the fitness industry.
“Super-Majority”, a new Mandate and renewed political capital….But what does any of it mean for the Fitness Industry?
We think it is safe to say that regardless of your political stance, the Conservative government felt tired. 14 years of government would be enough to tire any party, but to many the Covid-19 pandemic and lockdown, followed by the feeling of apathy and inertia in the cost of living crisis compounded a feeling amongst gym owners that the Conservative government had fallen asleep at the helm. Either unwilling or even unable to assist the fitness industry in any meaningful way.
In turn, this inaction created a sense of fatalism in the fitness industry. Many industry spokespeople, including politicians who have championed the fitness industry such as Kim Leadbeater, seemed to change their tone in the post-Covid years, accepting that help was desperately needed but unlikely to arrive.
The Labour government changes all of that. We heard the term ‘super-majority’ thrown around and while no such term exists within the actual structure of British politics (it, like so many things, is an American import), it is undeniable that Keir Starmer enjoys a majority of 174.
With that majority and a fresh election victory comes a certain degree of freedom. A freedom certainly not enjoyed by the last two predecessors.
It is fascinating that even as the usually pro-business Conservative party is removed, there is a sense of optimism about what is to come. The sense of agency and enthusiasm coming from the new government is something that has been sorely missing from UK politics for at least two years now.
Positive remarks, support and cooperation from within the Fitness Industry has already started to pour in
The transfer of power democratically is a strange and wonderful process. Often it feels like the old adage ‘Nothing happens for years, then everything happens at once’.
This has felt even more the case with the current government. After the removal of Boris Johnson and the disaster of Liz Truss, the Conservative government had a sense of inertia and inevitability about them.
Few people we have spoken to, whether they are in the fitness industry or otherwise can point to many policy achievements in the last few years. This became especially clear in 2022, where the invasion of Ukraine caused a cost of living and energy crisis that the government was very reluctant to aid businesses during.
Our defining memory of that year will always be ‘why aren’t they doing more’, a sentiment we heard echoed countless times.
Which is why, to many in the fitness industry, the incoming Government has been met with enthusiasm from across the industry already. Political persuasion irrespective, there is a feeling that ‘something’ will be better than the relative ‘nothing’ we have seen recently.
Many fitness industry organisations have wasted no time in reacting to the new Labour government. Fitness industry authorities, advocacy groups and alliances such as:
- Active Partnerships
- Chartered Institute for the Management of Sport and Physical Activity (CIMSPA)
- Sport for Development Coalition
- Sport and Recreation Alliance
- ukactive
- Youth Sport Trust
These organisations and many more have already made positive overtures towards the new government and highlighted not only the inaction of the previous government
Ukactive’s Huw Edwards speaks out with a warning and an opportunity for the incoming Government
Speaking of ukactive, a not-for-profit industry association that has come up on our blogs before. Their work advocating for fitness facilities and leisure clubs across the UK has been both tireless and effective, with the backing of public figures and industry experts.
One such public figure, Huw Edwards, the CEO of ukactive had the following to say about the incoming Labour government and the potential effect it could have on independent gyms and the fitness industry at large:
“The challenges facing the UK today mean the new Government has an incredible opportunity to deploy our sector to transform public health and stimulate economic growth.
“Our nation’s health challenges have never been starker, but we are fueled by hope because if we can unlock our sector’s potential and give more people the chance to be physically active, we can transform our nation’s future.
“Gyms, pools, and leisure centres form the fabric of our communities, providing a safe and supportive environment for people of all ages and backgrounds to be active together.
“Today they also represent frontline support for the NHS, as the home to rehabilitation and treatment for a growing range of health conditions, supporting people to get healthy and back into work.
“The new Government must work at pace to scale and integrate these services with the NHS, support the long-term sustainability of public leisure, and use the tax and regulatory levers at its disposal to expand our reach.
“There can be no growth without health and ukactive is committed to working with the new Government to ensure our sector can play its fullest role.”
It is a quote that gives words to frustrations a lot of independent gym owners have felt over the last five, ten or even fifteen years. Frustrations that their service, one that provides immense public benefit, has not been suitably recognised.
As well as hinting at the hope and possibility that members of the fitness industry know too well. This is an industry capable of transforming lives, on an individual and societal level. It is a reality that many Labour politicians championed while in opposition and it is a vision that fits well with existing Labour plans.
Small Business Section: Support for Independent Businesses to Increase under New Labour Government
Support for small business and the self-employed should mean good news for independent gym and fitness clubs
In both the economic and financial section of the 2024 Labour manifesto and within the King’s speech there was an acknowledgement that small businesses had been neglected and that a key goal of the incoming government was to rectify this.
Statements such as this:
“Labour’s plan for economic growth has been developed for all UK businesses. But small firms, entrepreneurs, and the self- employed face unique challenges. That is why, in partnership, Labour has developed a plan for small businesses – the lifeblood of communities and high streets across the country.”
That last sentence is worth noting. The lifeblood of communities and high streets. Sound familiar? It is clear that Starmer has been listening to his MPs, such as the champion for fitness Kim Leadbeater, about what is required to improve the life of everyday Britain.
Meanwhile, further down the business section of the Manifesto, there is a host of measures designed to bolster the prospects and support available to small businesses, many of which will invariably go someway to supporting independent gyms and fitness club owners.
Measures such as:
- Taking action on late payments to ensure small businesses and the self-employed are paid on time.
- Improving guidance and removing barriers to exporting for small businesses.
- Reforming the British Business Bank, including a stronger mandate to support growth in the regions and nations, will make it easier for small and medium sized enterprises to access capital.
- Reforming procurement rules to give them greater access to government contracts.
Having Issues Hiring? Labour Might have the solution
Another key issue that Ashbourne has heard from around the country is the issue of hiring and retaining staff members.
Whereas the outgoing Conservative government did not seem to have this very high up their priority list, it has been front and centre of not only the manifesto but also the King’s Speech, used to announce policy for the short term
“Too many people are out of work or not earning enough. Long waits for treatment of health conditions, particularly mental health, are contributing to the rise in economic inactivity. Labour will reform employment support so it drives growth and opportunity. Our system will be underpinned by rights and responsibilities – people who can work, should work – and there will be consequences for those who do not fulfil their obligations”.
“We will bring Jobcentre Plus and the National Careers Service together to provide a national jobs and careers service, focused on getting people into work and helping them get on at work. We will ensure the service is responsive to local employers, inclusive for all users, and works in partnership with other local services”.
It doesn’t take much to imagine how a comprehensive reform of not only the Job seeking pipeline but also the culture around unemployment could create a significant shift in what has become a stagnant and financially draining labour market both within and outside of the fitness industry.
The focus on mobilising local services and creating local partnerships will only serve to bolster independent gym and fitness club owners if implemented correctly.
“Labour will work with local areas to create plans to support more disabled people and those with health conditions into work. We will devolve funding so local areas can shape a joined-up work, health, and skills offer for local people”.
“One in eight young people are not in education, employment, or training, with those lacking good qualifications and with poor mental health facing particular disadvantages. Drawing together existing funding and entitlements, Labour will establish a youth guarantee of access to training, an apprenticeship, or support to find work for all 18- to 21-year-olds, to bring down the number of young people who are not learning or earning. We will also guarantee two weeks’ worth of work experience for every young person, and improve careers advice in schools and colleges”.
This drive should not only result in the filling of much needed vacancies and the generational of additional capacity within the fitness industry, it will also ensure that more young people will have the additional income needed to re-engage in fitness.
As we covered during the 2022 cost of living crisis, one of the major fears was that many young people had been forced to give up their fitness activities, whether that was the gym, a sporting club or event training.
The support and policies proposed here might start to undo the damage caused by the cost of living crisis, getting younger people the capital they need to start living their lives again.
It is important to remember that as the main block of economic activity within the fitness industry, any measure designed to get younger people into work and earning additional income will always see a positive knock-on effect for independent gym owners and the fitness industry at large.
Backed By Business
While it belongs to a campaign long since concluded, the tagline of ‘Labour Means Business’ feels like it could apply as much to Starmer’s government. It is an incoming government that knows it has a lot of work to do. One that has been making plans for the government for over four years and one that has spent a lot of time thinking about the businesses of the UK.
In fact, one of the major cornerstones of Labour policy in the year running up to this election has been courting business interests and ‘showing’ that Labour means business.
To this end, they have objectively been very successful. With a slew of business leaders either withdrawing their Conservative party endorsement in favour of Labour or declaring allegiance for the first time.
One such figure has been Richard Walker OBE, Executive Chairman of Iceland. Richard Walker was a notable defection from the Conservative party for several reasons. The political weight that his business expertise carried was only half the story.
The other reason that Richard Walker’s endorsement made ripples amongst politicians and business owners alike was because up until even October of 2023, he had been an ardent Tory supporter. Even attempting to run as a candidate for them.
And indeed, his praise for Labour’s economic credentials is something that all business leaders, gym owners included, should pay heed to.
“Labour’s plan for the economy is good news for my customers and colleagues in high streets across the country. Labour will bring stability, good jobs and higher living standards. As a business leader, I am sick and tired of chaos under the Conservatives. I am absolutely convinced that Keir Starmer is the leader to deliver the change this country needs. Labour will end division, strengthen our communities and protect the environment. That’s why I’ll be voting Labour and I urge you to do the same.”
And what should the fitness industry and independent gym owners expect next?
It is still very early days, and we here at Ashbourne aren’t here to pick a side.
We don’t know what the Labour government will bring, we only know what they have said and done over the course of the election and their short time in office.
There is reason for optimism and there is reason to doubt.
Like the rest of the fitness industry, we will be watching the Labour policy announcements over the coming weeks, months and years.
Watching to see if the measures laid out in their manifesto and in the King’s Speech 2024 come to pass. Watching to see if their promises to put small, local businesses at the heart of their economic strategy has a positive effect on independent gym and fitness club owners.
Watching to see if they make governmental funds, local and national, easier for businesses to access and watching to see if they deliver the long promised greater integration between our health services and the fitness industry at large.
And of course, we will be ever-vigilant when it comes to any new measures or policies that are announced over the course of this parliament, whether good or bad.
We hope to be able to say that Labour have started to deliver the promises that we have outlined in this article and announced support that will ensure that the fitness industry has a record breaking five years with the help of the government, rather than in spite of it!
More to Read...
Get your club in shape.
Want to discover how? Let us show you.
Simply select your preferred timeslot and we’ll be in touch to have a chat about your health club,
the goals you want to achieve, and how our system can help you.
the goals you want to achieve, and how our system can help you.
Get your club in shape.
Want to discover how? Let us show you.
Simply select your preferred timeslot and we’ll be in touch to have a chat about your health club, the goals you want to achieve, and how our system can help you.
Get your club in shape.
Want to discover how? Let us show you.
Simply select your preferred timeslot and we’ll be in touch to have a chat about your health club, the goals you want to achieve, and how our system can help you.
