Agenda item

The Chief Executive of Hyndburn Leisure Trust to present a progress report highlighting in-year challenges, opportunities and future plans.

Recommendations              -   That the comments and recommendations of the Resources Overview & Scrutiny Committee be noted and actioned, as required.

The Chief Executive of Hyndburn Leisure (HL), Lyndsey Sims, presented the Resources Overview & Scrutiny Committee with a progress report for Hyndburn Leisure, highlighting in-year challenges, opportunities and future plans. 

She reported on the Trust’s financial position including: 

·         Reducing grant funding paid to the Trust by Hyndburn Borough Council to zero since 2008-9.

·         The year-on-year reductions to the management fee providing cumulative savings to the Council of over £9 million (exclusive of VAT). 

·         External factors, over the last 3 years, had meant that the charity had required a subsidy from the Council to maintain the operation of all facilities and services.  A subsidy of £1 million had been agreed for 2024-25 which represented 17.5% of the overall turnover in 2024-25. 

·         In 2024-25 an overall operating profit of £15k was achieved. 

·         Over the next two years, the Trust aimed to move back towards a zero operating subsidy although the Charity had indicated to the Council that a subsidy of around £700k would be required for 2025-26. 

The Chief Executive of HL also referred to the work of the Charity and their achievements in respect of project work to improve health and wellbeing in the community.  She explained that they worked with other partners to deliver projects to support people’s needs and explained how this had had a beneficial impact on people’s lives, which the Charity was proud of. She reported that the Trust would continue work around improving healthy outcomes and reducing inequalities for the community by working closely with stakeholders across sectors such as public health, funders and service users.  In 2024-25 there had been 611,941 attendees at their facilitiesgenerating an estimated £19.5 million of social and economic benefit to Hyndburn. 

She informed the Committee of the launch of a new mobile app providing people with more flexibility when booking activities.  The Trust had also made efforts to reduce its carbon footprint and, in doing so, made their facilities more energy efficient and they had launched its most recent company strategy, updated annually, which had four major pillars: People, Provision, Partnerships and Performance. 

Prior to the meeting, the Committee had submitted a number of questions in advance which had been responded to.  The issues raised related to: 

-          The future plans of Hyndburn Leisure Trust, in respect of the Local Government Review

-          Plans and utilisation of Accrington Town Hall and its facilities

-          Accrington Town Hall revenue and its expenditure

-          Integration into town centre plans for Accrington Town Hall

-          Using Accrington Town Hall as a centre for performances?

-          Plans for separating the arts and entertainment side of the Trust from the sports side

-          The Trust working with neighbouring authorities to provide entertainment provision

-          Consideration of the Trust working with bodies such as IMEP to provide entertainment

-          Questions relating to running costs and subsidies.

Responses to the above questions were provided at the meeting.  The main points were summarised as below:

The Trust did not have any current plans to operate differently but would continue to work closely with Hyndburn Borough Council and other East Lancashire Leisure Trusts and Councils.  The Chief Executive of the Trust reported that future plans for Accrington Town Hall included being open to the idea of the facility moving back into Council control as part of the Council’s Culture & Heritage plans. 

In respect of concern that Accrington Town Hall was being underused, she referred to the number of visitors and type of activities that had taken place in the Town Hall during 2024-25.  She reported on the difficulty of booking performance events due to the size and shape of the stage not being suitable and that funding was not currently available to make the necessary changes.  She explained that it was not always possible to open the Town Hall during major events in the town centre due to operating costs and that there were no plans to separate the arts and entertainment side of the Trust from its sporting facilities.  The Trust was represented on the Town Centre Board and was committed to working with the Council and other stakeholders to ensure that the operating focus for the Town Hall complimented town centre plans.

The Chief Executive of HL reported that they were in the process of developing a proposal for Mercer Hall and Accrington Town Hall to help with entertainment provision and were working with partners, including Ossy Fest to identify potential opportunities for further collaboration in the future.

Revenue being brought into the Town Hall was generated at £179k income and she gave details of the main expenditure costs.  She reported that a subsidy control assessment had been completed by the Council and that any debt owed to the Council related to other financial years (not 2024-25).  The Trust’s 2025-26 draft budget included an assumption that the Trust would operate Wilson Sports Village from October 2025 and the lease approved would have no effect on the 2025-26 budget.

In respect of running costs of HL and the subsidy of £1m given to offset the outstanding debt, she responded that the subsidy was awarded to support the operating costs during 2024-25 and explained how, in the past the annual operating subsidy had been agreed in advance of the financial year commencing and was paid in monthly instalments.   She gave details of how the subsidy had been used.  She informed the Committee that the financial operating position for 2024-25 was a £15k profit. 

Further questions were raised by Members of the Committee including the following:

-          With reference to the swimming pool facility at the new Wilson Sports Village, she was asked how many users would be required to break even and if this would impact swimming facilities at other Trust venues.

-          What action was being taken to prevent future operating losses and less reliance on the Council providing subsidy.

-          Were there plans to upgrade the facilities at Accrington Town Hall and how could better use be made of this venue.  Reference was made to the cost of hiring the Town Hall, the Town Hall often being closed and the popularity of the Tourist Information Centre that had once been located in the Town Hall.

-          Could the provision of niche sports attract more people into the borough.

-          Could the Leisure Trust work with other partners to enhance facilities.

Responses:

-          It was estimated that the financial breakeven point for the new swimming facility at Wilson’s Sports Village should take place within the first 9 months with 1100 Members and 600 swimming lessons and that it wasn’t anticipated to have an impact on the Trust’s other swimming facilities.

-          It was explained that the subsidy and other grants were used to offset costs and to deliver activities.  Expenditures would have to be reduced if this funding was not available. 

-          It was likely that a report would be submitted to Cabinet in September 2025 updating the Council on the Leisure Trust’s position.

-          There had been funding applications for upgrading the Town Hall, which would cost in the region of £25k

-          Members were informed that the circumstances in running the Town Hall now were not comparable with that of the past.  She did, however, indicate that should Members want this, costs could be estimated.  She referred to the annual losses made on the Town Hall operating costs each year, including high energy and staffing costs. 

-          New ideas for sporting events and facilities were welcomed.

-          The Trust already worked closely with other partners and was open to further partnership working.

Resolved                           (1)   That a list of buildings, operated by Hyndburn Leisure Trust, be shared with Members of the Resources Overview & Scrutiny Committee; and

                                            (2)   That the report be noted.