Purpose

Cabinet will consider an extension to the
current leisure contract to ensure future provision of leisure
services.

Decision

Cabinet approved the
following recommendations:

·      
Approved the principle of the variation to the Leisure Management
Contract between the Council and Sports and Leisure Management
Limited trading as Everyone Active (SLM) for SLM to run the leisure
centres as an agent rather than as principal for the purposes of
collecting income of services to the public as set out in the
report.

·      
Approved the extension of the term by 3 years to 30 June 2029 with
an upward adjustment of the minimum income guarantee paid by SLM to
the Council as further set out in the report.

·      
Delegated authority to the Cabinet Member for Communities to agree
the terms of and to approve the adoption of the agency model,
subject to satisfactory completion of necessary due diligence.
 
Reasons for Decision: Everyone Active
(SLM) has proposed a contract extension option with an Agency Model
which allows local authorities to treat income from leisure
services as ‘non-business’ for VAT purposes. The
transition to an Agency Model will have minimal impact on
customers, while passing significant income to the Council
following its adoption. Additional income generated will be put
towards reinvestment in the facilities and efforts to reduce health
inequalities.