Over the past few weeks, much of the conversation around VAT has focused on hospitality. Restaurants, cafés and pubs across the UK have been calling for a reduced rate of VAT, arguing that businesses that contribute to the social fabric of our communities need support if they are to survive and thrive.
We agree.
What has received less attention is another sector facing many of the same pressures: health and wellness.
At Mission, we sit at the intersection of both worlds. We run a café and terrace that bring people together over food and conversation, and also provide yoga, strength training, mobility, boxing and movement education to thousands of people every year. From where we stand, the links between community, movement and health is impossible to ignore.
Every day we see people grow stronger, recover from injury, reduce pain, improve mobility and build the physical capacity to remain independent as they age. We see movement helping people manage stress, improve their mental health and reconnect with themselves and others. These outcomes are not extraordinary; they are the predictable result of people moving regularly and being part of a supportive community.
This matters because the UK faces real challenges: rising healthcare costs, growing levels of chronic disease and an ageing population. Policymakers frequently talk about the importance of prevention, early intervention and helping people stay healthier for longer. Yet many of the activities that contribute to those goals continue to be treated, from a tax perspective, as discretionary consumption.
A yoga class, a strength programme or a gym membership attracts the same 20% rate of VAT as countless other consumer purchases. That feels at odds with the role these services play in supporting public health.
This is not an argument that movement studios should be treated as healthcare providers, nor is it a plea for special treatment. Rather, we seek recognition that businesses like ours occupy a unique position between the healthcare system and the leisure economy. We help people build healthy habits that support long-term physical and mental wellbeing, often before they ever need medical intervention.
The practical consequences of the current system are felt by both businesses and consumers. Independent studios operate within a challenging economic environment shaped by VAT, rising employment costs, rent, business rates, utilities and insurance. These are labour-intensive businesses built around skilled teachers and staff, not high-margin enterprises generating outsized profits.
More importantly, VAT directly affects accessibility. Every pound added to the cost of participation creates another barrier for someone considering whether they can afford to prioritise their health. At a time when governments are encouraging people to move more, exercise more and take greater responsibility for their long-term wellbeing, it is worth asking whether the tax system is helping or hindering that objective.
A reduced rate of VAT for health and wellness businesses would not simply provide relief to operators. It would recognise the wider contribution that movement, exercise and community make to society. It would support local businesses, help maintain access to high-quality instruction and lower the cost of participation for the people who stand to benefit most.
The debate about VAT should not be limited to hospitality alone. If we genuinely believe that healthier populations, stronger communities and reduced pressure on public services are goals worth pursuing, then it is reasonable to ask whether the current approach reflects those priorities.
The tax system is ultimately a statement of values. At present, it sends a contradictory message: we encourage people to invest in their health while overly taxing many of the activities that help them do so.
That feels less like joined-up policy and more like a missed opportunity.
If you are a gym or studio owner, a teacher, coach or physio working in this space, please support a review of VAT on health and wellness services by adding your name to our Open Letter to the Chancellor.
Read and sign the letter here.
Genny Wilkinson is the CEO and Co-Founder of Mission, Europe’s largest movement studio. She is also a former financial journalist with Reuters and Time Magazine, a yoga teacher and a mother of four.