More options on the cards for local leisure centres

Councillors are set to probe three different funding options to maintain Leisure Centres in Powys as the review of services is set to rumble on ahead of a new contract tendering process in 2030.

At a joint meeting of all three Powys County Council’s scrutiny committees on Wednesday, June 17, councillors will receive an update report on the Leisure Services review

This is ahead of the report going to the Liberal Democrat/Labour Cabinet meeting for a decision on July 14.

The report gives an updated timeline for reviewing leisure services and options for investment into existing leisure facilities across Powys.

It explains that a decision on the future of leisure centres is supposed to happen in the spring of 2028 – which would allow the new tender process to be for a “redesigned” leisure portfolio.

But with local elections set to take place in May 2027, a new administration could take over the council and decide to do something else.

Currently the leisure centres are operated on behalf of the council by Freedom Leisure.

The first part of the review concluded that “significant investment” across the leisure centre estate would be necessary to address the maintenance requirements and replace life-expiring mechanical and electrical installations.

This would require an investment of around £16.8 million over the next 10 years at 2023 prices, and a total of £84.3 million to make the leisure estate carbon-zero.

The report said: “The age and condition of the leisure centre buildings need to be considered, including the capital investment required to maintain, repair and invest to achieve operational Net Zero.”

“The council has an obligation under the contract with Freedom Leisure to undertake as landlord continuing repairing obligations for the premises.”

The report continued: “If urgent or essential health and safety-related capital works are not carried out in all leisure centres as per the current leisure contract and areas of current centres close, the council is required to give Freedom Leisure three months’ notice for termination.

“As the contract is over 10 years old, the council are not expected to pay Freedom Leisure loss of profit and would only need to pay any relevant redundancies of staff.”

The report explains the other knock on effects of any closure of a leisure centre of part of it, would have on the council.

These would include; loss of income, cancellation of direct debits, reduced participation, displacement of swimming lessons, increased travel for users, lack of capacity in other centres, impacts to health, wellbeing and reputation, while still needing to continue to operate the centres and fund the expenditure.

It would also affect the income generated by leisure centres for the council under the “surplus share arrangement” it has with Freedom Leisure which is currently in a: “positive position for both parties.”

The report sets out three interim funding options which would maintain leisure services up until the new leisure contract is finalised in 2030.

Option A

This would see £2.988 million spent on leisure centres in the “five core hubs only’ of Brecon, Llandrindod Wells, Newtown, Welshpool and Ystradgynlais.

But the report reminds councillors that this would “not meet” the council’s current obligations in the leisure contract

Option B 

Would see the council spend £5.426 million prioritising necessary/essential statutory compliance / health & safety works in all leisure centres.

This would meet the council’s obligations under the current contract.

Option C 

This is the recommended option and would see £6 million spent in necessary/essential statutory compliance / health & safety works in all leisure centres.

This goes further than Option B as it would include work which “aims” to support the sustainability and accessibility of the leisure centres.

This could see more people use these facilities which in turn could generate more income to the council under the “surplus share” part of the contract.,

Councillors would be expected to come up with advice and recommendations for the cabinet.

By Elgan Hearn, Local Deomcrary Reporting Service