Issue - meetings

Freedom Leisure - Energy Crisis Support (with confidential schedule)

Meeting: 16/03/2023 - Cabinet (Item 80)

80 Freedom Leisure - Energy Crisis Support pdf icon PDF 479 KB

Freedom Leisure has asked the Council to consider providing financial support and continued changes in service provision to fund the increase in energy costs to run the four leisure facilities. This report asks Cabinet to consider continued approaches to mitigating some of the excessive energy costs currently being placed on Freedom Leisure and to consider financial options to support Freedom with such costs.

 

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.”

 

Additional documents:

Minutes:

Members considered the Freedom Leisure Energy Crisis Support report presented by Councillor Sam Clark.

 

Members made comments as follows:

·       Councillor Boden expressed the view that the announcement in the recent Budget was welcomed but the details and implications for the Council are not yet known, however, it is hoped that the detail will be favourable to the Council’s particular situation. He added that it is very much welcomed as this did not happen for part of the Covid period, and the monies are to be made available to local swimming pools which are under third party control as well as being directly controlled by councils. Councillor Boden stated that given that Freedom Leisure has charitable status, the Government announcement is such that the Council will be able to apply for money from the fund. He stated that given that the finer detail is not known he suggested that the recommendations should be amended to reflect the point that offering to make a repayable loan up to a maximum of £250,000 for the six month period commencing on 1 April 2023 which represents 86% of the expected maximum excess energy costs with the sum anticipated to be reduced by the continuing implementation of the mitigation measures put in place to reduce operating costs and energy consumption which is referred to in section 12 of the report. Councillor Boden added that the suggested wording that he is proposing to include is ‘together with any additional government support for Leisure Centres energy costs’, so that it can be considered when any potential loan is looked at on an open book basis.

·       Councillor Mrs French stated that she welcomes and fully supports the proposal, but she would not like to see any reduction in opening hours at the leisure centres going forward.

 

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

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

·       note the continued good operational performance of the Fenland group of leisure centres managed by Freedom;

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

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

·       agree to maintain the reduction in opening hours agreed in 2022 in order to continue to mitigate some energy costs in the leisure centres;

·       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 sum of £250,000 for the period 1 April 2023 to 30 September 2023. This represents 86% of the expected maximum excess energy cost, with the sum anticipated to be reduced by  ...  view the full minutes text for item 80