Decision

Salford City Council - Record of Decision (Cabinet)

I Councillor Jack Youd, Deputy City Mayor, in exercise of the powers contained within the City Council Constitution do hereby approve:

1. A one off payment of £350,000 to Salford Community Leisure (SCL) as an additional management fee for 2024/25 taken from Place Reserves.
2. The delegation of working capital funding for SCL to the Chief Finance Officer.

The Reasons are:

A fiscal review of Salford Community Leisure shows that grants and contributions are growing but mainly cover staffing costs, with a reduced ability to recover indirect costs. Customer income is exceeding expectations, but future projections need investment. Reserves, which previously generated healthy returns (£157k in 2023/24), have been depleted from £3.4m in 2021/22 to £829k to support cashflow. Pay awards have now wiped out remaining reserves, impacting future years. Efforts to cut costs are often counterproductive, affecting income, and cashflow is now a critical focus.

Options considered and rejected were:

This was the only There are no other viable options.

Assessment of Risk:

Medium.

The source of funding is:

Place Directorate earmarked reserve.

Legal Advice obtained:

Not applicable.

Financial Advice obtained:

Provided by David R Mills – Strategic Head of Finance and as shown in the report.

Procurement Advice obtained:

Not applicable.

HR Advice obtained:

Not applicable.

Climate Change Advice obtained:

Not applicable.

The following documents have been used to assist the decision process:

·         Briefing to Deputy City Mayor and Lead Member for Finance, Support Services and Regeneration

·         Briefing to the Lead Member for Culture, Heritage, Equalities, Sports and Leisure.

Contact Officer:  David R Mills - Strategic Head of Finance.

Telephone number: 0161 793 2858

The appropriate scrutiny to call-in the decision is the Community and Neighbourhoods Scrutiny Panel.           

Signed:     Councillor Jack Youd              Dated: 25.02.25

                        Deputy City Mayor

For Democratic Services use only

This decision was published on  25.02.25                                           

This decision will come in force at 4.00 p.m. on 04.03.25 unless it is called-in in accordance with the Decision Making Process Rules.