The health industry has become the latest sector to call for a cut in VAT to ensure that people are not put off using its services because of the cost, with one of the largest gym chains arguing that cutting VAT on gym membership would lower the obesity burden on the NHS.
The head of one of the UK’s largest gym chains argues that removing VAT on fitness club membership would boost numbers at a time when obesity is costing the UK billions of pounds in the treatment of conditions related to weight gain.
As he points out, only 13 per cent of people in the UK regularly attend a gym and making membership cheaper could cause this to rise by more than seven per cent. He argues that doctors could help the obesity epidemic by prescribing exercise rather than pills and highlights the difference between the UK and Germany and Scandinavia, where gym membership can be as high as 30 per cent.
His comments tally with the frustration felt by pub and hotel owners, as VAT is charged at 20 per cent in the hospitality and tourism sectors too. In fact, calls for cuts in VAT for these industries have resulted in a number of influential campaigns led by industry leaders.
As pub owners point out, it seems unfair that VAT is charged on food sales in pubs but not on food sold by supermarkets. They argue that the tax saving allows retailers to sell cut-price alcohol, leaving pubs struggling to compete.
Meanwhile, the cut tourism VAT campaign leaders maintain that levying VAT at 20 per cent on tourist attractions and hotels puts the UK at a disadvantage with other destinations in Europe where the tax is much lower.
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