Issue - meetings

To consider an exempt report on a request for funding from Sports and Leisure Management to enable the re-opening of Spelthorne and Sunbury Leisure Centres.

Reason for Exemption

The report may be exempt from publication in accordance with Paragraph 3

of Part 1 of Schedule 12A to the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985 and by the Local Government (Access to information) (Variation) Order 2006.

Paragraph 3: Information relating to the financial or business affairs of any particular person (including the authority holding that information).  

The public interest in being transparent in transactions is outweighed by the financial affairs of the leisure operator being disclosed in discussions; this being financial information which is not publicly accessible. If the Council made this available to the public then it could impact the financial position of the operator as their competitors would have access to such information which in turn might affect the viability of the centres moving forward.

The Cabinet considered an exempt report on a request for funding to enable the re-opening of Spelthorne Leisure Centres.

The Cabinet noted that the Council’s two leisure centres in Sunbury-on-Thames and Staines-upon-Thames play a very important role in supporting the health and wellbeing of many of the borough’s residents. Both centres are popular with users and catered for a wide range of needs.

Sports and Leisure Management Limited (SLM), one of the biggest leisure centre operators in the UK, had a contract with the Council to operate these two sites. The exempt report outlined some of the background leading up to a request from SLM for financial assistance from Spelthorne.

Following extensive discussions with SLM on the level of support needed to reopen the Council’s Leisure Centres from 12 April (or the date allowed by the Government’s COVID-19 route map), and analysis of their forecast figures, Council officers had formulated all the options available in the report before Cabinet.

Alternative options considered and rejected by the Cabinet:

1.    Provide no financial support to SLM and enforce the requirements of the contract.

2.    Agree to forgo the monthly Management Fee payable to the Council under the current contract for a specified period of time of three months.

3.    Agree to provide additional funding to open just one leisure centre.

4.    Agree to provide additional funding to keep both leisure centres open.

5.    Agree a proposal based on a combination of Options 2-4 above.         

6.    Not to accept any of the above options and undertake further negotiations with SLM to seek an alternative agreement

Resolved to:

1.    approve the proposed financial support package with Sports and Leisure Management Ltd. as outlined in the report, to enable the reopening of the Council’s Leisure Centres from 12 April 2021;

2.    note that at the end of the three month period a review will be undertaken to determine what, if any, further funding will be provided and if so at what level, and;

3.    note the update on the works to Sunbury Leisure Centre swimming pools.

Reason for Decision

Sports and Leisure Management have indicated that without financial support from the Council they will not be able to reopen the leisure centres and that they may have to remain closed indefinitely due to the limitations placed on them by the Government’s guidance to prevent the spread of COVID-19.