Agenda item

LED has been severely impacted by the Covid-19 pandemic with interruptions to business and as a consequence a significant fall in income. The leisure industry has suffered due to enforced closure of premises under government restrictions and the complexities of reintroducing Covid-19 secure facilities and activities.

The Service Lead Countryside & Leisure welcomed Peter Gilpin, CEO LED Leisure and Bridgette Jones, Head of Finance and Support Services LED Leisure. He explained that LED had been severely impacted by the Covid-19 pandemic with interruptions to business and as a consequence a significant fall in income. The leisure industry had suffered due to enforced closure of premises under government restrictions and the complexities of reintroducing Covid19 secure facilities and activities.

Discussions included the following:

·        Why was the subsidy so high and would the operator’s model be fit for purpose after 31 March 2021 for sustainable long-term growth?

·        That the new forum had independent strategic advice appropriate for this level of business partnership

·        Was it appropriate to cover all the financial loss due to the pandemic when other business were not in this position to receive such support?

·        If LED were not reimbursed they may have to consider not trading

·        LED needed to be kept in business for the health and well-being of the council’s residents

·        Not to underestimate the value for money LED had for people of the district especially the use of swimming pools for all age groups

·        LED was fundamentally important for the outreach programmes it offered

·        The need for EDDC and LED to make profits from a sustainable partnership for both parties to benefit

·        The council was to make a bid to Government to reclaim such financial support

·        All members needed to lobby MPs as to date there had been no response from Government on the matter leaving finances for councils and leisure facilities in a critical position

The Chair stated LED was not at fault and this situation was totally due to the Covid-19 pandemic. LED had a social purpose with referrals from GPs and other public health benefits and was not in position to compete with high-end private gyms/facilities. Other local authorities who operated their leisure provision in-house were able to access government funding to cover any loses, unfortunately this did not apply to charitable trusts. LED had immense overheads just through running its swimming pools.

Peter Gilpin, CEO LED Leisure explained LED was a community benefit society and registered charity so could not be compared to other private leisure providers. As a charitable trust revenues go back into the business to provide further facilities and equipment. There were 9 sites in East Devon with approximately12000 members most of which were for swimming membership. There had been no revenue for 3 months of this year, April to June, to which financial reserves were used heavily to cover these loses. He reiterated how LED was vital to the health and well-being of the wider community.

RECOMMENDED that Cabinet recommend to Council;

1.               That the Council pays an additional subsidy to LED of £732,275 to reimburse their actual net losses incurred to September 2020 resulting from Covid-19 and that from October 2020 a monthly review and payment is then made until 31 March 2021 to cover further net losses incurred. Cumulatively the total of any additional subsidy payment in the current financial year shall not exceed £1,339,000.  This approach follows LGA guidance.  Additional subsidy was being paid to ensure the continued operation of LED enabling the continuation of Leisure facilities in the District. Details of individual site/facility costs to be considered by the LED Monitoring Forum to determine if changes to service provision should be introduced to reduce this sum with recommendations back to Cabinet and Council.

2.               That the arrangements for the provision of revenue support funding was as detailed in paragraph 2.14 and that delegated authority was given to the Strategic Lead (Housing, Health and Environment) in consultation with the Portfolio Holder – Coast, Country & Environment and Strategic Lead (Governance and Licensing) to ensure appropriate documentation was put in place to formalise arrangements as detailed in paragraph 2.15.

3.               That the Council and LED make a bid to Government for funding announced of £100m to support leisure centres to offset the sum being requested of the Council from LED.  If the bid proves not to cover the full costs then the Council with LED continues to lobby government for financial assistance to support our leisure provider to maintain essential health & wellbeing activities to assist them through the loss of income caused by an enforced lockdown for public health reasons.

4.               That local district MPs as a matter of urgency, are all asked whether they are willing to lobby Ministers to ensure that Leisure Trusts, such as LED, receive Covid related support funding in an equitable way to non-Trust leisure providers to ensure a level financial playing field across the leisure sector. Cabinet will also ask all the district's MPs to use their influence, as members of the governing party, to set up an urgent meeting with the relevant Minister or preferably Secretary of State, where they, alongside representatives of this Council and representatives of this Council's leisure provider LED, can explain the difficulties facing both organisations of government's failure to provide LED and other Leisure Trusts with Covid related support funding and to demand that such funding is immediately forthcoming.

5.               Cabinet agrees that subject to the Council obtaining agreement from LED to the proposals, including EDDC ceasing to have any representatives on the LED Board, that the LED Monitoring Forum be established for the purposes set out in the report and the on basis of the membership detailed in paragraph 3.6, with the Portfolio Holder for Sustainable Homes and Communities replaced with the Portfolio Holder for Corporate Services and COVID 19 Response and Recovery, and that delegated authority be given to the Monitoring Officer to agree the 4 non-administration members with relevant Group Leaders.

REASON:

To ensure that LED remain a viable leisure provider and were able to manage the financial impacts of the pandemic, continuing to provide leisure activities and contributing towards the health & wellbeing ambitions of the Council.