Content

Decision made:
 
The Executive Member
(Resources) is recommended to approve a change to the Leisure
Operating Contract between Chorley Council and Chorley Leisure Ltd
such that the company becomes an ‘Agent’ of the council
in the delivery of leisure services, and the council becomes the
‘Principal’.
 
Reasons for decision:
 
Changing the Leisure Operating
Contract to reflect the above would enable the group (Chorley (CBC)
and Chorley Leisure Ltd (CLL)) to avail themselves of the recent
VAT changes made by HMRC and as such eliminate the amount of
irrecoverable VAT within the leisure company.
 
Other
options considered and rejected:
 
To continue with the existing
Leisure Operating Contract; in doing so however, the leisure
company, and therefore the group, would continue to incur
irrecoverable VAT which a revised contract would
eliminate.