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leisure opportunities Osborne announces The Living Wage
Chancellor George Osborne has unveiled plans for a new compulsory living wage in the first Conservative government Budget for almost 20 years. From April 2016, the Living
Wage will come into effect in place of the minimum wage, which is currently £6.50 per hour. The Living Wage – intended to cover significant cuts being made to tax cred- its for low income workers – will start at £7.20 per hour for over 25s, gradually rising to £9 per hour in 2020. The announcement will
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George Osborne’s Living Wage will have big implications for leisure
have big implications for the leisure industry – both in terms of revenue opportunities and staff costs – where the majority of entry level workers start their careers on minimum wage. For lifeguards, receptionists, junior per-
sonal trainers and a number of hospitality workers, the announcement heralds the prospect of a 38 per cent pay rise by 2020. Operators meanwhile, must contemplate how to cover a rapidly inflating wage bill. “Increased costs for operators who rely on
minimum wage staff, will have to be bud- geted for, but the industry must embrace this
increase with a positive attitude, to ensure we continue to build our reputation as a credi- ble sector which creates good jobs and offers solid employment prospects,” said Leisure Media CEO Liz Terry. “Te increase in mini- mum wage is good news for the industry, as it gives people more disposable income to enjoy their leisure time.” Terry also criticised the “further undermining of student grants,” which she flagged as being at odds with the government’s stated aim of creating a com- petitive economy based on increased skills. Details:
http://lei.sr?a=5S7q2_O
Fitness First eyes offload of 10 sites
Continued from front cover A well-placed source told Leisure Opportunities that the gym chain is looking to offload 10 sites outside of London, in areas where “con- sumers are sensitive to price and budget gyms have gained a strong foothold.” Te clubs in question, which span the south
west, Midlands region and “a few outliers,” are being marketed “through the usual chan- nels” and are expected to be sold separately rather than to a single suitor. Although several are profitable, the gyms are understood to be “not exceptional enough to hold on to” as Fitness First looks to finalise its shift towards offering premium clubs in major urban centres. “We can confirm we are considering
options for other gym operators to take on the operation of a small number of Fitness First clubs,” said a Fitness First spokesperson. “Tese clubs are situated in locations that are
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Te gym chain is looking to offload 10 sites
better suited to other types of operator and do not fit with our strategic plan going forward, which is to invest heavily in our people, our service and our facilities to grow our business in the right locations across the UK.” Details:
http://lei.sr?a=Q9c5u_O
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Twitter: @leisureopps © CYBERTREK 2015
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