Agenda item

LED Management Fee 2022-23

Minutes:

The LED CEO ran through the content of the LED Management Fee 2022-23 report which had been circulated to Forum Members in advance of the meeting, which included:

·        Background information in respect to the Service Fee.

·        The 2022-23 Service Fee and effect on service.

·        The impact on LED of the pandemic, the significant increase in inflation and rising utility and wage costs, together with a summary of the mitigations that have been implemented.

·        The financial forecast for the EDDC Leisure Management Contract for the coming financial year, assuming no further Covid lockdowns or restrictions after 1 April 2022, and the effect of the forecast financial position on development of the service and investment in the facilities.

 

In view of the effect on the contract of the significant increase in energy costs, the LED CEO asked the Forum to consider allocating the £50-£100K contingency fund that was written into the Council’s budget as additional support, subject to LED evidencing the impact of energy costs, in arrears.

 

The Strategic Lead – Finance suggested that, with Cabinet approval, the Council could support LED to meet the additional energy costs up to £87,500 in the financial year, by means of a quarterly reconciliation of utility costs and associated quarterly monitoring reports to the Forum.

 

In discussion, the following points were made:

·        One Member commented that going forward, it would be helpful to have this report as a bar chart, to better make sense of the data.

·        Views were expressed that it was appropriate to support LED with utility costs as proposed, and that quarterly monitoring would be helpful.

·        A Member observed that energy costs cannot be controlled and, with the Russian invasion of Ukraine, the outlook was gloomy, and the £100K contingency for LED was likely to be inadequate.  He expressed that there were difficult decisions for Members, given that LED was one of a number of groups who were arguably in need of support with rising utility costs.  He urged caution and suggested it would be sensible to consider monthly monitoring rather than quarterly, to ensure tighter controls. 

·        Another Member expressed every sympathy with everyone facing higher costs but cautioned against ‘comparing apples with pears’ given the specific situation of how the contract is arranged with LED, and noting the work that was ongoing to support other groups e.g. the work of the Poverty Working Panel, and grants available for social housing tenants.  He added that some solutions were outside the control of the Council and were a matter for central government.  

·        Members would continue to lobby the local MPs concerning financial support from the National Leisure Recovery Fund for East Devon’s leisure provision, and would discuss outside of the meeting how best to do so.

 

Following the discussion, Cllr Paul Millar proposed, seconded by Cllr Alan Dent, to recommend to Cabinet the process for allocating the £100k contingency in the 2022/23 budget be specifically aimed at coping with the increased utility costs with the applications made in arrears by LED to be agreed by the Portfolio Holder for Leisure, Culture, Sport and Tourism, the Chair of the LED Monitoring Forum and the Strategic Lead – Finance. 

 

RECOMMENDED to Cabinet:

That the process for allocating the £100k contingency in the 2022/23 budget be specifically aimed at coping with the increased utility costs, with the applications made in arrears by LED to be agreed by the Portfolio Holder for Leisure, Culture, Sport and Tourism, the Chair of the LED Monitoring Forum and the Strategic Lead – Finance. 

Supporting documents: