Duncan Bannatyne: Rachel Reeves' National Insurance rise has cost my business £2m
Health club entrepreneur Duncan Bannatyne has criticised Labour as he said National Insurance increases have cost his business £2m.
National insurance for employers was increased from 13.8 per cent to 15 per cent in April 2025, with the threshold at which payments start on workers’ salaries dropping from £9,100 to £5,000.
The former Dragons’ Den star said Darlington-headquartered Bannatyne Group, which has six health clubs across Yorkshire, had delivered “impressive results against difficult economic headwinds brought about by Government policy from April 2025”.
The company delivered increased turnover and earnings in 2025, with revenues of £158m and EBITDA of £43.7m. This compared with £149.7m turnover and £43.6m earnings in 2024.
The business has almost 220,000 members across its 70 locations nationwide.
Mr Bannatyne said: “The business has delivered impressive results against difficult economic headwinds brought about by Government policy from April 2025. Nearly 3,000 staff throughout the UK have worked together to maintain a growing business, delivering popular services to a large cohort of loyal members.
“The company has been an active investor in the market.
"It has closed underperforming clubs in some areas and opened new clubs in areas where demand was stronger. It has also invested substantial sums in new products, including advanced, all weather Padel courts, which are also available to non-members. We will be announcing further investments in Padel throughout 2026 in Norwich, Livingston, Basingstoke, Chafford Hundred, Stratford on Avon, Colchester and Grove Park.
“The success has been achieved in the face of an increase in the rate of employer’s National Insurance, which added £2m to the company’s costs. Meanwhile, the Government’s energy policies have failed to deliver any control on spiralling business energy tariffs at a time when energy represents 11 per cent of the cost base of Bannatyne Group.”
Mr Bannatyne added: “Our investment in people has been focused on a sector leading apprenticeship programme, which facilitates progression within peoples’ roles.
"A long-term career is achievable at Bannatyne Group. Our business is led by people who have real expertise in the field of health and fitness and have introduced some ground-breaking programmes, which are popular with members.”
In 2025, the Bannatyne Group acquired the former Beechdown Leisure Club, a premium health and wellbeing facility in Basingstoke and opened its first padel courts in Ingleby Barwick, Teesside.
Bannatyne Group’s locations in Yorkshire are Barnsley, Cardigan Fields Leeds, Cookridge Hall Leeds, Rotherham, Wakefield and York.