COVID-19 LEISURE CONTRACTS RECOVERY
REPORT OF THE SERVICE DIRECTOR – PLACE
To consider financial assistance support for Stevenage Leisure Ltd.
Decision:
NB: This item was not audio recorded or filmed
NB This Item was considered prior to the Part 1 Item of the same name (Minute 77 refers)
The Committee, Member and Scrutiny Manager undertook a roll call to ensure that all present could hear and be heard.
Prior to the item being discussed Councillor Claire Strong advised that she was a member of Archers Gym and would therefore not take part in the debate or vote.
Prior to the item being discussed Councillor Jim McNally advised that he regularly attended North Herts Leisure Centre and would therefore not take part in the debate and vote.
RESOLVED:
(1) That financial support is provided on an open-book basis to SLL to enable the leisure facilities to be open when Covid-19 restrictions allow. The support provided will reimburse any losses. The support to SLL in 2020/21 is forecast to be £2.45m (assuming the leisure facilities will now remain closed until the 31 March 2021). Future levels of support will depend on any further restrictions and the speed of recovery. It is assumed to be an additional £2m in 2021/22, but realistic scenarios show that it could be as low as £1.3m in 2021/22 (no further restrictions), or as much as £4.4m across 2021/22 (£3.1m) and 2022/23 (£1.3m).
(2) That Council notes that the cost of not supporting SLL and closing the facilities could be as high as the cost of providing support.
(3) That (following an initial payment to cover losses to date) payments to SLL are made on a monthly basis following submission of management accounts showing the extent of any losses. These accounts will be reviewed by the Service Director: Place in consultation with the Service Director: Resources, Executive Member for Environment and Leisure and Executive Member for Finance and IT. The affordability of payments will be kept under constant review by the Service Director: Resources, in consultation with the Executive Member for Finance and IT.
(4) That Council notes that, in the event of higher levels of support being provided, budget savings in future years (2022/23 onwards) will need to be delivered more quickly than currently forecast.
REASON FOR DECISIONS: To seek approval to provide financial support on an open-book basis to SLL to enable the leisure facilities to be open when Covid-19 restrictions allow.
Minutes:
NB: This item was not audio recorded or filmed
NB This Item was considered prior to the Part 1 Item of the same name (Minute 77 refers)
The Committee, Member and Scrutiny Manager undertook a roll call to ensure that all present could hear and be heard.
Prior to the item being discussed Councillor Claire Strong advised that she was a member of Archers Gym and would therefore not take part in the debate or vote.
Prior to the item being discussed Councillor Jim McNally advised that he regularly attended North Herts Leisure Centre and would therefore not take part in the debate and vote.
The Executive Member for Environment and Leisure presented the Part 2 report entitled Covid Leisure Contracts Recovery and the Part 2 referral from the Cabinet meeting held on 15 December 2020 (9c)
The following Members took part in the detailed debate and asked questions:
· Councillor Simon Harwood;
· Councillor John Bishop;
· Councillor Sam North;
· Councillor Martin Stears-Handscomb;
· Councillor Sam Collins;
· Councillor Helen Oliver;
· Councillor Judi Billing;
· Councillor David Levett;
· Councillor Ian Albert;
· Councillor Steve Jarvis.
Questions were responded to by the Service Director – Legal and Community
Councillor Steve Jarvis proposed, Councillor Ian Albert seconded and it was:
RESOLVED:
(1) That financial support is provided on an open-book basis to SLL to enable the leisure facilities to be open when Covid-19 restrictions allow. The support provided will reimburse any losses. The support to SLL in 2020/21 is forecast to be £2.45m (assuming the leisure facilities will now remain closed until the 31 March 2021). Future levels of support will depend on any further restrictions and the speed of recovery. It is assumed to be an additional £2m in 2021/22, but realistic scenarios show that it could be as low as £1.3m in 2021/22 (no further restrictions), or as much as £4.4m across 2021/22 (£3.1m) and 2022/23 (£1.3m).
(2) That Council notes that the cost of not supporting SLL and closing the facilities could be as high as the cost of providing support.
(3) That (following an initial payment to cover losses to date) payments to SLL are made on a monthly basis following submission of management accounts showing the extent of any losses. These accounts will be reviewed by the Service Director: Place in consultation with the Service Director: Resources, Executive Member for Environment and Leisure and Executive Member for Finance and IT. The affordability of payments will be kept under constant review by the Service Director: Resources, in consultation with the Executive Member for Finance and IT.
(4) That Council notes that, in the event of higher levels of support being provided, budget savings in future years (2022/23 onwards) will need to be delivered more quickly than currently forecast.
REASON FOR DECISIONS: To seek approval to provide financial support on an open-book basis to SLL to enable the leisure facilities to be open when Covid-19 restrictions allow.