Issue - meetings
LEISURE AND ACTIVE COMMUNITIES AGENCY MODEL - PART 1
Meeting: 14/01/2025 - Cabinet (Item 88)
88 LEISURE AND ACTIVE COMMUNITIES AGENCY MODEL - PART 1 
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REPORT OF THE SERVICE DIRECTOR – PLACE
To consider the benefits and risks of the Council changing its current contractual arrangements into an Agency Agreement with SLM (Everyone Active) for the operation of our leisure facilities.
Decision:
RESOLVED: That Cabinet:
(1) Agreed in principle to entering into an Agency Agreement with SLM (Everyone Active) for the operation of our leisure facilities and varying the Contract in accordance with the external Part 2 Appendix C legal advice and Part 2 legal implications.
(2) Delegated the final decision on entering into the Agency Agreement to the Service Director – Place, in consultation with the Executive Member for Leisure, Environment and Green Spaces and the Executive Member for Finance and IT and Service Directors – Resources and Legal & Community.
REASON FOR DECISION: To ensure the maximum financial sustainability of our leisure services, in line with our council priorities.
Minutes:
Audio recording – 21 minutes 14 seconds
Councillor Mick Debenham, as Executive Member for Environment and Leisure, presented the referral on this item from Overview and Scrutiny Committee and the report entitled ‘Leisure and Active Communities Agency Model – Part 1’ and advised that:
· There had been a discussion at Overview and Scrutiny around any potential risks involved.
· In March 2023 changes to VAT were announced by HMRC applicable to leisure services delivered by Councils which meant that VAT no longer had to be charged on the sale of leisure services, for example a gym membership.
· That Councils were also able to recover any VAT they incurred in providing leisure services.
· In September 2024 SLM (Everyone Active) sent a proposal to North Herts District Council whereby they would act as the agent of the Council and the Council would be the principal.
Councillor Mick Debenham proposed and Councillor Dave Winstanley seconded and, following a vote, it was:
RESOLVED: That Cabinet:
(1) Agreed in principle to entering into an Agency Agreement with SLM (Everyone Active) for the operation of our leisure facilities and varying the Contract in accordance with the external Part 2 Appendix C legal advice and Part 2 legal implications.
(2) Delegated the final decision on entering into the Agency Agreement to the Service Director – Place, in consultation with the Executive Member for Leisure, Environment and Green Spaces and the Executive Member for Finance and IT and Service Directors – Resources and Legal & Community.
REASON FOR DECISION: To ensure the maximum financial sustainability of our leisure services, in line with our council priorities.