Agenda item

Report from Martin Dyson

The Cabinet Portfolio Holder for Leisure Transformation, Councillor Noordad Aziz, presented a report on the work being undertaken on the Leisure Delivery Model Review.  He reported that the Council was reviewing the Leisure Delivery Model in the Borough against the backdrop of significant and unexpected energy price increases, increased employee costs and the impact of the pandemic, which had led to its current provider, Hyndburn Leisure (the Trust) requesting financial support from the Council over the last two financial years. 

The Executive Director of Resources outlined the background to the Hyndburn Leisure Trust being appointed to provide Leisure Services on the Council’s behalf.  He explained that the annual management grant from the Council to the Trust had been reduced year upon year with the Trust being able to operate with no Council grant fund in 2021/22.  However in 2022, a number of unforeseen factors had impacted the financial circumstances of the Trust and had, since, required grant funding from the Council in order to keep services running.  As such the Trust’s business model was revised and had to become much more commercial with a stronger emphasis on the delivery of community focused health and wellbeing services.  He reported that the Council considered the existing operating model to be efficient and expected energy prices to fall, however, as it had been over twenty years since the current delivery arrangements had been set up, a review of the arrangements had been agreed.  The Council invited three consultancy firms to quote for the work on the review, obtained two responses and selected Max Associates as its preferred consultant to lead on the review.  The review is expected to be conducted over a 12 month period with an expected final report to Cabinet in September 2024.  He reported that a Panel consisting of senior officers and cross party representatives had determined an evaluation criteria in selecting the consultancy firm to carry out the review.

A number of questions were submitted by Members of the Committee in advance of the meeting, responded to as follows:

-       Use of the building operated by the Leisure Trust

Each building was considered an asset and the aim was to ensure that all buildings were made more useable and this would be part of the review.

-       Provision of a list of public buildings and their uses

A list of public buildings could be provided to the Committee detailing the condition of the buildings.

-       Responsibility for external maintenance of the buildings and could all public building leases be standardised.

Terms and conditions of building leases were part of the original agreement but this issue would be part of the review.

-       Why are terms of condition for Hyndburn Leisure and Hyndburn Borough Council staff not aligned when they use the same payroll system?

They are two separate organisations with different terms and conditions of employment but this would form part of the review.

-       Eco schemes carried out on public buildings including the Leisure Centre in order to save energy and money.  Why has money not been saved and what could happen to increase savings through energy reduction.

Clarification was given that the 70% savings had been for C02 omissions and not energy costs and with decarbonisation and solar panels the adaptations would be worthwhile in the long term.

-       Consideration of a merger with another Trust – would this be beneficial financially?

An explanation around the challenges faced by the Leisure industry was referred to and that this would be an area the review would consider.

Further questions and comments were submitted by Members at the meeting in respect of the following issues:

-       To ensure that there was Council representation on the Trust Board and that communication of financial information was fed back to the Council after concern that Members of the Council had not been kept informed of the Trust’s progressive lack of financial dependence.

-       A request for all Members to be consulted on the review

-       Concern about the under-utilisation of public buildings operated by the Leisure Trust

-       That the review included consideration of the use of finances (including ensuring solvency), different delivery models and the standardisation and modernisation of lease terms for all public buildings to ensure better utilisation.

-       That the Leisure Review report could also be submitted to Full Council for whole member consideration, as well as to Cabinet for approval.

Having also received a question from a resident, Mr. Peter Shaw, the Chair permitted him to speak at the meeting in relation to the employment of Max Associates to write the Leisure Delivery Model Review.  He referred to reference being made to Section 3 of the Strategic Operations Planning Module in 2012 (which had provided information for the Leisure Transformation Project) and intimated that this had made the independence of Max Associates questionable and therefore suggested that there had been a conflict of interest.  The Cabinet Portfolio Holder for Transformation, Education and Skills agreed to take Mr. Shaw’s comments on board in respect of ensuring that any future recommendations made by Max Associates were given thorough consideration before being introduced. 

Resolved                               -   That the report and comments submitted by members of the Committee be noted.