On Wednesday 30 October, Chancellor of the Exchequer Rachel Reeves MP delivered her first Budget statement to the House of Commons. Whilst the Budget’s core focus was on a number of key tax rises to fund increased spending on health and education, we look below at some of the measures which will be of interest for Alliance members and the sport and recreation sector.
Investment in sport and physical activity
Government has confirmed an extra £9m per year for UK Sport to support athletes ahead of the 2028 Olympic and Paralympic Games is Los Angeles, an increase of 10% on the current settlement, meaning a total investment of £344m over the cycle. In addition, there was a reiteration of a commitment to invest in multi-use grassroots facilities and support for the UK’s hosting of the 2028 UEFA European Football Championship.
An additional £100m investment in cycling and walking infrastructure has also been confirmed for 2025-26.
Business Rates
Since the pandemic, Retail, Hospitality and Leisure (RHL) businesses have received relief on their business rates bills, which has benefited many in the sector. For 2025-26 this relief will be reduced to 40%, from 75% in the current financial year. The relief applies on top of any mandatory relief a premises receives, such as Community Amateur Sports Club (CASC) or charitable relief.
From 2026-27, government intends to change the way RHL business are supported by moving away from an annual relief to a permanently lower multiplier for RHL businesses – paid for by an increase in the multiplier for those properties with a Rateable Value over £500,000. Alongside the Budget, Government has published a business rates discussion paper and HM Treasury will be holding an engagement period seeking views on these proposed changes. The Alliance will be feeding into this process and will keep members updated. The new multipliers will be confirmed at Autumn Budget 2025.
Soft Drinks Industry Levy
The Soft Drinks Industry Levy (SDIL) will be increased over the next five years to account for inflationary rises since 2018. Annual rate increases will start from 1 April 2025 and will reflect future yearly CPI increases. Revenues from the SDIL are used to fund the PE and sport premium – it’s important therefore, that the additional revenue raised through the increased rates continue to be ringfenced for this purpose.
Government has also committed to reviewing the current sugar content thresholds and the exemptions for milk-based and milk-substitute drinks.
Employment Costs
The Budget included a number of measures which will impact those organisations who directly employ people:
Get Britain Working Trailblazers
Government will create eight trailblazer areas across England and Wales to support those who are economically inactive due to ill health, as part of a £240m investment. In addition, eight Youth Guarantee Trailblazer areas will also be created to test new ways of supporting young people into employment or training.
There is clearly a role for the sport and recreation sector to play in addressing and preventing long-term ill health and supporting people back into work. The Get Britain Working White Paper, due to be published later in the autumn, is an important opportunity for this role to recognised.
Reaction
Despite the Budget’s focus on revitalising the NHS and other public services, there remains a notable absence of the role sport, recreation and physical activity can play in tackling the nation’s key policy priorities.
In the week that new research found that exercising just once or twice a week can reduce the risk of dementia in older age, increasing activity levels must be seen as a priority from a preventative health perspective, as well as the other social and economic benefits this would unlock.
Research by the Alliance shows that if the UK were to become as physically active as some of our European neighbours, we could benefit from an additional £1bn of healthcare savings and a GDP uplift of £3.6bn per year.
Next spring represents an important opportunity with Phase 2 of the Spending Review setting future departmental budgets and the publication of the 10 Year Health Plan for the NHS. The Alliance will be engaging with policymakers and Parliamentarians ahead of this to further exemplify the role the sector could, and must, play.
The full Autumn Budget 2024 is available here.
The National Sector Partners Group (NSPG) has issued the following response to the Chancellor’s Autumn Budget 2024.
Read moreAs Black History Month (BHM) comes to a close, the Alliance is proud to have celebrated this with our members and sector leaders who – like us – are seeking to make sport, recreation and physical activity more accessible and equitable for everyone.
Read moreThe National Sector Partners Group (NSPG) has issued the following statement, welcoming the findings of Sport England’s new social value report, published today (22 October).
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