Agenda item

Freedom Leisure has asked the Council to consider providing financial support to cover the increase in excess energy costs to run the four leisure facilities. 

Appendix C Schedule 17 to this report comprises exempt information – to exclude the public (including the press) from a meeting of a committee it is necessary for the following proposition to be moved and adopted: “that the public be excluded from the meeting for Items which would involve the likely disclosure of exempt information as defined in the paragraphs 5 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended) as indicated.”

Members considered providing financial support to Freedom Leisure to cover the increase in excess energy costs to run Fenland’s four leisure centres presented by Councillor Miscandlon.

Councillor Miscandlon stated that from meetings with Freedom Leisure they are quite surprised that they are doing better than they anticipated, which is to the Council’s advantage because the cost analysis that they require from the Council diminishes and the managers are very upbeat about going forward and are grateful for the support from the Council. He acknowledged that there is work to be carried out on the centres, some of this is being investigated currently, which will enhance the centres for the public.

Members made comments, asked questions and received responses as follows:

·       Councillor Tierney stated that he is glad that Freedom Leisure appreciate the support the Council has given them as it was comprehensive and he wants to make it clear that the Council did this as it was supporting the people of Fenland as those services are valued and did not want to see Covid and other things put an end to this so it was investment for the people of Fenland and not for the company although it had a knock on effect.

·       Councillor Boden referred to Councillor Miscandlon saying that Freedom Leisure were surprised that they were doing as well as they are and he is also surprised but it is to the benefit of everyone. He agreed with the comments of Councillor Tierney, with there being councils around the country where the leisure provision that is available, particularly swimming pools, have been reduced and in some cases eliminated entirely and this Council has taken a deliberate decision to protect those facilities for residents in Fenland to the extent that it has. Councillor Boden made the point that there are 4 leisure centres across the area which is a lot more than most councils of Fenland’s size would have due to the very unusual set up of having 4 towns within its area, with many authorities the size of Fenland having one centre, and as a result this Council faces a much larger challenge to provide services at locations where people will find them as convenient as possible and the decision has been taken, where the Council can, to continue to support that operation and it intends to do so in the future subject to external factors, which cannot be predicted. He stated he is pleased with the information in the report but the Council needs to continue to be rigorous in the financial implications of it and he knows a great deal of hard work goes on behind the scenes between officers and Freedom Leisure and he is grateful for this.

·       Councillor Miscandlon agreed with the comments of Councillor Tierney that this support is not for the benefit of Freedom Leisure but is for the benefit of the residents of Fenland and this needs to be kept within the forefront of people’s minds as Freedom Leisure are a bi-product from the commitment of this Council to the residents of Fenland and he would fully support anything that enhances this.

Proposed by Councillor Miscandlon, seconded by Councillor Boden and AGREED to:

·       note the impact that the energy crisis continues to have on the leisure sector;

·       note the continued good operational performance of the Fenland group of leisure centres managed by Freedom and note the Sport England and Government funded energy assessment report regarding the facilities in Fenland;

·       recognise the £4 return on investment that every £1 invested in sport and physical activity generates in England and as part of that return recognise the essential role that the Council’s leisure facilities play in helping to maintain the physical and mental health of our community as highlighted in the attached Appendix I;

·       recognise the significant financial challenges that the Council itself is facing;

·       consider and delegate to the Section 151 Officer, working in consultation with the Portfolio Holders for Finance and Leisure, to offer direct financial support to Freedom Leisure in the form of a repayable loan, on an open book basis, up to a maximum of £100,000 for the period 1 October 2023 to 31 March 2024. This represents 85% of the expected maximum excess energy cost, with the sum anticipated to be reduced by the continuing implementation of the mitigating measures put in place to reduce operating costs and energy consumption. Any repayable loan shall become payable through an annual deduction of any profit generated in excess of the levels predicted in the Leisure Operators Base Trading Account. This is a change from the current 50/50 profit share and will be subject to the performance of the business over the remaining contract period. The past three years have been particularly difficult for businesses across the country. Whilst the operational business has recovered well, there remains no certainty that excess profits will be made in the future;

·       note the swimming pool support fund (revenue) bid information; and

·       note the anticipated bid to the swimming pool support fund (capital) for energy mitigating measures.

This item comprised EXEMPT INFORMATION within Appendix C which is not for publication by virtue of Paragraph 5 of Part 1 of Schedule 12A of the Local Government Act, 1972 (as amended) but it was not necessary to go into confidential session.