The Cabinet Procurement and Insourcing Committee approved a variation to the Leisure Management Contract with Greenwich Leisure Limited (GLL) that allows GLL to run leisure centres as an agent of the council, extends the contract by five years to 31 March 2034, and includes updates to maintenance classifications and the formal inclusion of Clissold Park Splash Pad in the contract. The committee delegated authority to the Group Director - Climate, Homes & Economy, in consultation with other directors, to finalise the legal documentation.

Hackney Leisure Management Contract

The committee discussed and approved recommendations regarding the Hackney Leisure Management Contract with Greenwich Leisure Limited (GLL). The council has partnered with GLL since 2005 to operate seven sports and leisure facilities in the borough:

• Britannia Leisure Centre
• Clissold Leisure Centre (including Clissold Park Splash Pad)
• Hackney Marshes Centre (including Gainsborough Playing Fields, Mabley Green, North Marsh Pavilion)
• Kings Hall Leisure Centre
• London Fields Lido
• Queensbridge Sports and Community Centre
• West Reservoir Centre.

The original contract with GLL began on 1 April 2009 and was extended in 2016 to run until 31 March 2029. At a meeting on 6 January 2025, the committee approved a variation to allow GLL to run the leisure centres as an agent rather than a principal, which would reduce costs for both parties.

This report sought approval for the terms of this variation, as they differ from those outlined in the January meeting.

The recommendations approved by the committee were:

• Contract Extension and Agency Model: GLL will run the leisure centres as an agent rather than a principal for the remainder of the contract term, extending the contract by five years to 31 March 2034. This was based on Options 2A or 2B.
• Clissold Park Splash Pad: The operation of Clissold Park Splash Pad is formally included in the contract.
• Maintenance Classification: Updates to the classification of maintenance to reflect recent changes to the facilities.
• Delegated Authority: The Group Director - Climate, Homes & Economy, in consultation with the Group Director - Finance and Resources and the Director - Legal, Democratic & Electoral Services, has the authority to agree the terms and enter into all necessary legal documentation.

The report noted that a change to HMRC VAT policy in 2023 provided an opportunity to implement the 'Agency Model', benefiting both the council and GLL through reduced costs.

The report presented four options, with options 2A and 2B being preferred. These options involve extending the contract by five years to 31 March 2034, with GLL guaranteeing annual payments to the council. These options also consider the temporary closure of Kings Hall Leisure Centre for refurbishment.

The committee was told that the proposed options transfer most of the financial risk of generating surpluses to GLL, while still allowing the council to benefit from significant surpluses through the existing surplus share mechanism.

During the discussion, a committee member asked about the impact of the change in relationship with GLL from principal to agent on the council's influence over GLL. Ian Holland, Head of Leisure, Parks and Green Spaces, confirmed that the existing contractual commitments would remain unchanged and that the council would continue to retain its influence over GLL's operations, particularly in employee relations and social activities.

The committee welcomed the report, noting the long-standing relationship with GLL and its alignment with the council's objectives as a social enterprise company. They also acknowledged the social value outcomes and the work undertaken to support residents in active lifestyles and careers.

Councillor Sarah Young, Cabinet Member for Climate Change, Environment and Transport, declared a non-pecuniary interest as her child worked as a lifeguard for GLL.