Agenda item

The Cabinet considered a report of the Corporate Director of Regeneration, Economy and Growth which provided a summary of the leisure transformation programme, and an update on current and planned works and completed project delivery to date.

The report noted the due diligence work undertaken on site options for Seaham and development and cost appraisals work across all sites, following the report to Cabinet in September 2021.

The report also outlined the challenging financial environment facing the council in its overall operation and regarding the delivery and operation of leisure facilities and also highlighted the overall costs of the programme. Within that context it outlined the proposed approach to the facilities that have not yet commenced in the programme.

The report then outlined an update relating to the £10 million Medium Term Financial Plan (MTFP) commitment for Seaham and Chester-Le-Street Leisure Centres (for copy of report, see file of minutes).

Councillor J Rowlandson, Cabinet Portfolio Holder for Resources, Investments and Assets said that global and local challenges had impacted on the programme since the original leisure transformation aspirations were developed. The aspiration to bring forward and deliver on the full programme in due course would remain. However, the cost of delivering the programme as set out in January 2020 would be in excess of £109m. This was the result of extraordinary inflationary pressures. Like all local authorities, the Council was in a far worse financial position than it was in 2020 and in this context the commitment of an additional £46m to bring the total investment of over £109 million on what was an important but ultimately, a discretionary service was too high a financial risk for the Council to take. The Leisure Transformation Programme maximised the available budget and included an investment of £2m from Sport England who recognised that the plans contributed to national priorities. The Council had been supported through the government's public sector decarbonization scheme, which had brought innovative green solutions to the leisure estate and contributed to carbon reduction commitments. In February 2024, the council committed a sum of £10 million to support customer focused improvements at leisure centres in Chester-le-Street and Seaham. When officers undertook the initial development work to establish a suitable programme, it became clear that the work carried out to improve the experience of the facilities could be abortive in terms of future new build developments and would not offer the best value for the Council or for the users. The £10 million would be ringfenced for the work that safeguards the operational capability at this time. A £62.2 million investment in the health and well-being agenda through commitments to the current leisure centres in the capital programme remained exceptional in the current climate. Along with the work of the Children's and Young People and Adult and Health Services. The Sports and Leisure transformation contribution was immeasurable to the continued health and wellbeing of the residents of County Durham. Councillor Rowlandson hoped that the financial position would improve to the extent that the opportunity to see through the original aspirations.

Councillor E Scott, Cabinet Portfolio Holder for Economy and Partnerships explained the importance of recognising the importance of the investment for the health and wellbeing of our communities. The provision of affordable facilities for residents resulting in health, well-being, economic and social benefits they created for communities were substantial. Councillor Scott placed on record her thanks to the staff team for everything they had done in this regard. Customer feedback from the transform sites had been extremely positive, with increased use by families and young people in soft play and tag active zones and by older people and those needing more introductory level, or rehabilitation gym offer in the move hub. These two user groups were particularly key in terms of increasing activity levels across the county and addressing health inequalities. The report outlined that the income generated hadn’t yet met the targets envisaged, however, work was underway to drive usage further.

Resolved:

That the recommendations in the report be approved.