Issue - decisions

Leisure Management Contract Extension

30/06/2023 - Leisure Management Contract Extension

Having agreed to note the confidential appendices and background papers to the officer report, Cabinet

 

RESOLVED:  That

 

(1)            the extension of the Council’s current Tri-Borough leisure contract (with the London Boroughs of Brent and Ealing) with Everyone Active (Sports and Leisure Management) (SLM) Ltd (EA) for 1 year commencing 1 September 2024 until 31 August 2025, be approved;

 

(2)            authority be delegated to the Corporate Director of Place, following consultation with the Director of Finance and Assurance, and the Portfolio Holders for Community and Culture and Finance and Human Resources, to complete all the required actions to extend the Council’s current Tri-Borough leisure contract (with the London Boroughs of Brent and Ealing) with Everyone Active (SLM) Ltd (EA) for 1 year until 31 August 2025, including entering into the contract extension.

 

Reason for Decision:  The tri-borough contract was due to end 31st August 2024. Across the sector leisure centres are still experiencing a slow and stagnating rate of recovery following the Covid-19 pandemic and the subsequent cost of living crisis.  The impact of the latter is particularly affecting older leisure sites.  Due to the financial impact of the above, leisure operators are currently more risk adverse in terms of their own investment into facilities, and there is likely to be limited interest from non-incumbent operators.  An extension of the contract would allow the leisure market to recover further from the pandemic and enable a leisure investment strategy to be completed.  Without a plan for investment in the Council’s leisure facilities it is likely that interest from the market was likely to be limited and the financial returns for the Council would be worse.