Bannatyne Group

The sad death of Her Majesty Queen Elizabeth II will lead to silence from the Government with announcements and political statements suspended during the period of official national mourning. Entrepreneur and philanthropist Duncan Bannatyne OBE has urged the Government to use the time constructively by working out and announcing a significant economic stimulus coupled with greater certainty about energy reductions for business.

Duncan Bannatyne OBE, said: “It is right the country suspends political debate and observes a period of mourning in respect of our beloved late Queen. The Government should use this time constructively by requiring officials to work out a major national economic stimulus and properly planned assistance to business with energy bills.

The hospitality sector and manufacturing sectors attract a great deal of attention with vocal advocates, but the leisure sector, which employs around a million people, needs help too. Since the pandemic my firm has been forced to close four health clubs with the loss of 120 jobs, now the energy crisis has already increased bills by more than £1m per year. Other firms will be in a similar position and urgent help is required.

In late September I expect the Government to deliver a mini-budget and it should learn from the lessons of history, in particular the 1970s energy crisis and the 2008 financial crisis.

In 2008 Gordon Brown’s Government reduced VAT across the board, VAT cuts should happen again. The previous cut of 2.5% boosted the economy by at least £9bn* a bigger cut of 5% should be brought in quickly. The energy cap for business should also be aligned with the cap for the general public, not restricted to a mere six months. Employers National Insurance cuts should happen too, they penalise the creation and maintenance of jobs.

There are 7,200 health and fitness clubs in the UK with around 10 million members**. In England alone, the sport, fitness and leisure sector generates £85bn of social and economic value every year***. Much of the leisure sector is once again being ignored. After the first lock down we were the last sector to be allowed to open, at a time when furlough payments were being reduced. We are just recovering from the Covid pandemic and now the energy price rise is another huge obstacle to the return to profitability.

The difference with COVID is that the Government can actually do something about this. A realistic energy price cap, a cut in VAT and reduced employers NI will go a long way to saving businesses and jobs. It’s time the Government got its act together, stopped fighting amongst themselves and did something positive.”

*Centre for Economics and Business research

**statista.com

*** UK active

ENDS

NEWS RELEASE: ISSUED ON BEHALF OF BANNATYNE GROUP

CONTACT: Caroline Walker on 01325 363436

Notes to editors:

The Bannatyne Group operates 70 health clubs, 47 spas and four hotels. The health clubs employ 2,500 members.

Bannatyne health clubs can be found in towns and cities throughout the UK, with a particularly strong presence near residential areas of large towns. They place a strong emphasis on wellbeing and exercise forming a central part of living a healthy lifestyle.

www.bannatyne.co.uk