Decision

To vary the Leisure Management Contract between the Council and Freedom Leisure in order that Freedom will run the leisure centres as an Agent rather than a principal for the remainder of the contract as per the Cabinet decision of 27/4/2026.

Reasons for the decision

See Cabinet report and publicly available appendices attached.

In summary:

1.1         The existing contractual arrangement with Freedom Leisure for the management of the four leisure centres in Fenland is based on the Sport England template leisure operating contract. Freedom operates the facilities as "principal", meaning that Freedom is the entity that provides leisure services to the public.

1.2         Following a legal ruling this approach can be adjusted to an Agency agreement whereby Freedom delivers services as an Agent of the Council, with the Council being the Principal to provide a more VAT efficient way of managing the leisure facilities.

1.3         The expected saving for both parties by switching to this approach is in the region of £219,000.  Approximately £2,000 each per week, using a 50:50 split of the total savings value.

Alternative options considered

None – Cabinet have decided to vary our current arrangement.