Purpose

The Crawley Leisure Contract is managed by Sport and Leisure Management Ltd trading as Everyone Active until 13 November 2033. Following a change by HMRC into the VAT treatment of leisure services for local authorities a variation to the current leisure is being concluded to realise the financial benefit of this change. Cabinet held on 24 June 2026 agreed that under General Delegation 3 to delegate authority to the head of Corporate Finance, Head of Law and Governance and Head of Major Projects and Commercial Services to negotiate a variation of the Crawley Leisure Contract to an agency model as per the terms set out in report HPS/052. Further to the Cabinet agreement a variation to the leisure contract generates additional income to Crawley Borough Council over the remaining term. Detailed negotiations are concluding with Sport and Leisure Management Ltd with the agency agreement anticipated to be entered into from 1 August 2026. In the period leading up to that date, the necessary implementation arrangements will be undertaken to facilitate commencement of the agreement from 1 August 2026.

Decision

Complete the variation of the Crawley Leisure Contract to an agency model as per the terms set out in report HPS/052.

Alternative options considered

Option 1 - No change to the leisure contract No change to the leisure contract sees the financial compensation to Crawley Borough Council remaining at the same level as currently achieved.