Rates raid on council gyms ‘could damage nation’s health’

SCOTS’ ‘physical and mental health’ could be significantly damaged by proposals to force council leisure centres to pay millions of pounds in business rates, critics warn.

Sporta Scotland, which represents cultural and leisure trusts, claimed stripping facilities of the right to use charitable status to claim rates relief would lead to closures, staff cuts and fee hikes.

Arm’s Length External Organisations (ALEOs), such as council-run sports facilities, can claim relief on soaring rates bills.

But this week’s Barclay Review of Business Rates said this gives them an ‘unfair advantage compared to private sector businesses offering the same or very similar services’.

The report has been met with fury from a number of sectors, including independent schools.

It had been hoped that chairman Ken Barclay would recommend an overhaul of the system, but this was rejected – and thousands of firms now fear rate rises of up to 400 per cent.

Sporta Scotland warned that making leisure centres pay rates could push up prices, limiting access to those who need services most.

They also warned that should ALEOs have to pay business rates councils may have to close museums, parks and community halls to save cash.

Chairman Robin Strang said he was ‘concerned that if the Scottish Government acts on the recommendation to remove charitable tax relief from trusts, thousands of people will lose

‘Only option may be closures’

their only connection to physical and social inclusion’.

Scotland has one of the highest obesity rates in the world and a recent report found only 11 per cent of 10 and 11 yearolds get enough exercise.

Mr Strang said services had been under huge pressure due to rising costs while budgets have been falling – and business rates could be the last straw.

He added: ‘If councils become liable for seven-figure tax bills, the only option may be to close leisure centres, pools, parks... The impact on the physical and mental health of people, and the Government’s attempts to improve health and well-being, would be significant.’

Charitable trusts fund more than 80 per cent of public-owned sport and leisure groups.

Scottish Tory health spokesman Miles Briggs said: ‘The Scottish Government claims it is committed to improving physical health, and indeed mental health. If that’s the case, it should rule out such increases for sporting facilities.’

Gail Macgregor, of councils’ umbrella body Cosla, said councils must save cash or it ‘will have a big impact on delivery of much-needed services’.

Meanwhile, Scotland’s hydro industry said the review offers ‘too little, too late’, with renewables firms facing rate rises of up to 600 per cent. The British Hydropower Association’s Adrian Loening said: ‘All it offers are minor amendments.’

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