Purpose

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.
The report highlights information from a third-party assessment of
leisure centre energy use and also covers submissions to the Sport
England Swimming Pool Support Fund.

Content

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.