For the UK’s grounds management workforce, spanning local authorities, education providers, sports clubs, contractors and volunteer-led community facilities, the measures outlined land at a pivotal moment. With rising operational costs and workforce shortages, any shift in public funding, wages or business taxation carries real consequences for organisations of every size.

The Grounds Management Association (GMA) exists to support and represent the UK’s grounds management sector. In this summary, we highlight the Budget measures that we believe will have the greatest impact on the workforce and wider sector over the coming year, and outline where challenges and opportunities may emerge as organisations plan ahead.

Rising wages and employment costs

The National Living Wage will increase to £12.71 an hour from April 2026, with apprentice wages rising 6%. While this is good for low earners, it will increase payroll costs for employers across the sector and runs the risk of pay compression in the sector. Unless employers review and adjust pay structures for experienced staff alongside these raises, it will reduce differentials between new and experienced staff. This may undermine progression incentives, morale and retention.

Tax changes will impact employees, self-employed and small businesses

Dividend tax rates will rise by 2 percentage points from April 2026, and the Lower Earnings Limit and Small Profits Threshold will increase from 2026–27. This will directly raise costs for many self-employed grounds managers and small businesses operating as limited companies. Freezes to both National Insurance and Income Tax thresholds will increase fiscal drag and reduce the take-home pay for many staff over the longer term. Pension contributions made via salary sacrifice above £2,000 per employee per year will in the future become subject to both employer and employee National Insurance. All of these changes may increase the desirability of flexible benefits packages as employees look for ways to minimise their tax liabilities.

Investment in Apprenticeships and youth employment

The government will provide more than £1.5bn for employment and skills support, which will fund the Youth Guarantee, guaranteeing six-month paid work placements for every eligible 18-21 year old and includes £725m to fully fund SME apprenticeships for under-25s. This will occur alongside reforms to simplify the apprenticeship system. This offers an exciting opportunity to encourage skills development and recruitment into the sector. 

Increased local authority and education budgets

Funding reforms for councils, Mayoral authorities (worth at least £13 billion between 2026–30), and an increase in the education capital budget for 2026–27 to £8.3 billion, including dedicated funding for playgrounds, may result in additional investment in green-spaces, pitches and grounds maintenance.

Business rates are likely to increase for many clubs

Business rates revaluation, lower business-rates multipliers for smaller Retail, Leisure and Hospitality (RHL) businesses, combined with a new high-value business-rates multiplier will be applicable from April 2026. There will be transitional relief arrangements to help those businesses most impacted by increases in their bills. While lower multipliers may help to reduce business rates in some smaller community clubs, many sports facilities, clubs and stadia will face an increase in costs at a time when budgets are already stretched.

Overall outlook

The Budget 2025 delivers a mixed picture: tighter margins for grounds teams and contractors, increased costs to larger sports facilities, alongside the potential for a major expansion of funded entry routes into the sector. For many grounds sector employers, 2026 will require balancing rising wage and business rate costs, improving employee rewards packages, while leveraging strategic opportunities to access additional funding and attract and develop new talent.