Decision Maker: Cabinet

Outcome: Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: August 19, 2025

Purpose: The Council’s leisure contract was recently re-procured on a ‘contract for services’ basis. A recent HMRC VAT ruling identifies that leisure services for local authorities can now be considered ‘non business’. The ruling means that local authorities do not have to charge output VAT on services (e.g. gym memberships) and they can also recover all input VAT on revenue or capital costs incurred in relation to the services. The Cabinet will be asked to approve a change to the contract to an Agency model arrangement, which would result in significant income for the Council.

Content: Cabinet resolved to:   (i)  Agree that the Council proceeds with the variation to the leisure contract with SLM Ltd (Company no. 02204085) to move to an Agency Model arrangement on the terms set out in the report; and   (ii)  Delegate authority to the Strategic Director, Inclusive Growth and Place, in consultation with the Leader, the Strategic Director, Resources, and the Head of Legal, to vary the existing contract to an Agency Model arrangement and agree and enter into all necessary and/or ancillary agreements to fully implement and effect the proposals.