Is Inactivity Draining £20 Billion from the UK Economy?

Sport England's recent findings highlight that increasing participation in sport and physical activity could significantly alleviate a £20 billion shortfall in public finances. By addressing inequalities in access to exercise, particularly among disadvantaged groups, the report suggests that substantial economic benefits could be realised, including healthcare savings and enhanced productivity.

Last updated: 18 October 2023 (BST)

What’s happening now

As the UK approaches the upcoming Budget, Sport England has released new research emphasising the critical importance of physical activity in bolstering public finances and economic stability. The agency warns that inactivity is costing the public sector an astonishing £20 billion annually, which could be mitigated through increased investment in sports and physical activity initiatives. This insight comes at a time when the government has indicated that addressing inactivity is a priority within its health agenda.

Key takeaways

• Inactivity is costing the UK public purse nearly £20 billion each year.
• Investment in grassroots sport could yield £4.38 for every £1 spent.
• 67% of adults are meeting physical activity guidelines, but significant inequalities persist.

Timeline: how we got here

Several developments have underscored the growing recognition of the importance of physical activity in the UK:

• April 2023: Sport England's report identifies that 67% of adults meet physical activity guidelines.
• June 2023: Sport leaders write to Prime Minister Sir Keir Starmer, urging prioritisation of sports funding.
• October 2023: Sport England releases research before the Budget, linking inactivity with a £20 billion economic burden.

What’s new vs what’s known

New today/this week

Sport England's latest report reveals the staggering £20 billion cost of inactivity, prompting calls for increased investment in sports to unlock economic benefits through improved health and productivity. The report also highlights significant disparities in activity levels among various demographics.

What was already established

Previous studies have indicated that a majority of the adult population meets physical activity recommendations, but persistent inequalities in access remain. The government's acknowledgment of inactivity as a focus area in its health strategy has been ongoing.

Impact for the UK

Consumers and households

The economic implications of increased physical activity extend to households, as better health outcomes can lead to lower healthcare costs and improved quality of life. Families may benefit from enhanced community facilities and opportunities for engagement in sports.

Businesses and jobs

Grassroots sports play a vital role in the economy, generating £36 billion annually through employment and volunteering. Increased investment could lead to job creation in the sports sector, benefiting the economy as a whole.

Policy and regulation

As the Budget approaches, the government's funding decisions will significantly impact the future of sports and physical activity initiatives. The urgent call from sports leaders for prioritised funding may influence policy directions, potentially leading to new investment strategies.

Numbers that matter

• £20 billion: Estimated annual cost of inactivity to the public purse.
• £36 billion: Annual economic contribution of grassroots sports through jobs and volunteering.
• £4.38: Return on investment for every £1 spent on grassroots sports.
• 67%: Percentage of adults meeting recommended physical activity levels.
• £14 billion: Tax revenue generated annually from grassroots sports and exercise.

Definitions and jargon buster

• Grassroots sport: Local sports initiatives that promote community engagement and participation.
• Physical activity guidelines: Recommendations set by health authorities regarding the amount and type of physical activity individuals should aim for weekly.
• Public purse: The collective financial resources of the government used for public services and welfare.

How to think about the next steps

Near term (0–4 weeks)

In the immediate future, stakeholders should advocate for prioritised funding in the Budget, highlighting the economic benefits of increased sports participation.

Medium term (1–6 months)

Monitoring the government's response to the calls for investment and assessing the impact of new funding on grassroots sports initiatives will be crucial.

Signals to watch

• Government announcements regarding sports funding in the upcoming Budget.
• Responses from sports organisations and community groups on investment changes.
• Trends in physical activity levels post-investment initiatives.

Practical guidance

Do

• Engage with local sports organisations to support community initiatives.
• Advocate for equitable access to sports for disadvantaged groups.
• Track government spending announcements related to sports funding.

Don’t

• Ignore the disparities in access to sports and physical activity.
• Assume that current participation levels are sufficient without addressing inequalities.
• Overlook the potential economic benefits of investing in grassroots sports.

Checklist

• Review local sports facilities and their accessibility.
• Identify community groups that support physical activity initiatives.
• Stay informed about government funding announcements and their implications.
• Consider participating in or promoting local sports events.
• Engage with policymakers to advocate for sports funding.

Risks, caveats, and uncertainties

While the economic benefits of increased physical activity are clear, the pathway to achieving these improvements may be fraught with challenges. Disparities in access to sports facilities and programmes may not be resolved without targeted efforts. Additionally, the government's willingness to invest in these initiatives remains uncertain, especially in light of competing budgetary pressures.

Bottom line

The findings from Sport England underscore the urgent need for increased investment in physical activity to mitigate the £20 billion cost of inactivity to the public purse. By addressing inequalities and promoting grassroots sports, the UK could realise significant health, economic, and social benefits in the coming years.

FAQs

How can increased physical activity benefit the economy?

Increased physical activity can lead to better health outcomes, reducing healthcare costs and enhancing workforce productivity, ultimately benefiting the economy.

What is the role of grassroots sports in this context?

Grassroots sports play a critical role by generating economic activity, creating jobs, and fostering community engagement, making them essential for overall public health and economic well-being.

What are the challenges in promoting physical activity in disadvantaged groups?

Challenges include access to facilities, financial constraints, and social barriers, necessitating targeted interventions to ensure equitable participation in physical activities.