Shropshire Star

Shrewsbury fitness club boss facing £100k energy bill increase says more action needed to rescue sector

A fitness club boss says his business is facing a £100,000 increase in energy bills from April and fears some leisure facilities face the risk of closure.

Published
Dave Courteen, from The Shrewsbury Club

Dave Courteen, managing director of Mosaic Spa & Health Clubs, who own The Shrewsbury Club, is one of around 200 signatories from the world of health, sport, recreation, and leisure who has signed a letter sent to Prime Minister Rishi Sunak calling for greater support for grassroots facilities and clubs amid the ongoing energy crisis.

He says urgent action is needed by the government to intervene as some businesses face the ‘final straw’ once energy-costs relief for the swimming pools, leisure centres, community facilities and gyms finishes at the end of March.

Mr Courteen said The Shrewsbury Club's utility bills have doubled and said:"We have been rocked with a fuel bill that will see an increase that adds up to £100,000 in a year.

"It's challenge for us. We are fortunate that, right now, we are at our most successful point in terms of membership.

"But all of that success is eaten away by the increase in utility bills and that's off the back of funding our way through the best part of a year being close down because of the pandemic.

"We can just about cope although it will inevitably delay any future investments or developments we may want at the club as it's a load of extra money going out of the door.

"We will be sustainable and survive but the government need to step in a provide help because there are others in sector who won't. Facilities which have swimming pools see a huge drain on utilities, it's as simple as that.

"Pools are a huge body of water you have to try to keep warm. It's a real problem and I am a passionate believer that all health and leisure clubs in Shropshire need to be successful.

"It's the whole sector and we want other centres to be sustainable and it's a worry for many right now."

Mr Courteen said the government should see the benefits of supporting the health and fitness sector.

"Clubs like ours are a valuable part of the solution to many of the current crises that the government faces," he said.

"The funding for greater funding in the NHS and problems caused in health are largely caused by inactive lifestyles.

"Encouraging people to lead a more active lifestyle, whether it be here or a local authority-funded facility can only help reduce the burden on the NHS.

"It would be investment in a sector that has a positive impact on so many other areas of government spending so it seems to be a no-brainer to be honest.

"The sector has been left to fend for itself. We have had Eat Out To Help Out for the hospitality industry, but nothing for health and leisure clubs and that's incredibly frustrating.

"Now we have these huge utility bills to come on the top of the pandemic and its add to the pressure on the survival of a lot of clubs."

He added that, as well as physical health, the need to support people's mental health should be firmly on the government's agenda.

"Comments we got from members when we reopened after lockdown were that people missed the club for their mental well-being," he added.

"Of course, there are the physical benefits from being active but it helps with mental health in terms of a sense of purpose and a sense of community. That social side is critical especially after being isolated for so long in lockdowns. I think that's been a key thing in our increase in membership.

"We need facilities to survive and swimming pools and leisure need to be included within the energy relief scheme.

"It seems farcical that libraries and museums have been described as high use of energy and they, therefore, will continue to get relief but our sector won't. We are in the wrong column on the spreadsheet. That mistake must be rectified.

"And, beyond that, many European countries don't charge VAT on leisure services and I don't see why we should be any different over here. To reduce VAT on health club memberships and people using swimming pools would make a massive difference to the operators.

"It would encourage people to be more active and improve the sustainability and viability of health clubs across the country.

"Any loss in VAT income for the government would be more than replaced by savings they would make through less investment in the NHS because people are leading a more active lifestyle."