The Overview and Scrutiny Committee of Haringey Council met on Wednesday 03 January 2024 to discuss the decision to bring leisure services in-house. The committee resolved to note the call-in of the Cabinet's decision and to recommend that the Cabinet decision be affirmed.

Leisure Management

The committee discussed the Cabinet's decision to bring Haringey Council's leisure services in-house, a decision that was called in by councillors. The Cabinet had previously resolved on 11 July 2023 to end the leisure management contract with Fusion Lifestyle and to review future options for running the service. The report presented to the Cabinet recommended insourcing the service, citing benefits such as greater control over service delivery, improved health and wellbeing outcomes, and the ability to design services tailored to community needs.

During the meeting, a deputation from the Park Road Lido User Group expressed concerns about the future of the Lido, particularly its closure during winter. They argued that the leisure services report lacked vision and clarity, with no specific mention of swimming. The group also raised concerns about the reputational risk to the Council if it contracted with another failing leisure provider, suggesting that the Council itself could fail due to a lack of expertise or financial backing. They believed that an external provider might have more experience in running a lido as a business, citing London Fields Lido as a successful example.

The Cabinet Member for Culture, Communities & Leisure responded to these concerns, reaffirming the Council's commitment to carefully considering how leisure services are run and listening to residents' views. She assured the deputation that both indoor and outdoor swimming would be a consideration in the long-term vision for leisure provision. The cost of keeping the Lido open year-round had been included in budget estimates, along with energy-saving measures, with the aim of reducing running costs and increasing income. The Council stated it possessed the in-house knowledge to manage the service effectively, addressing concerns about Fusion being understaffed and lacking financial resources. A commitment was made to carry out a consultation exercise to ensure the service reflected residents' lives and values.

The Cabinet's decision to insource leisure services was based on a review of various options, including procuring a new provider, closing the centres, leasing them, or selling/redeveloping the sites. Insourcing was favoured as it offered the Council full control, the potential to achieve broader health and wellbeing outcomes, and the ability to design services responsive to diverse community needs. The report highlighted the success of bringing New River Sport & Fitness in-house in August 2021, which has since delivered improved and more inclusive services.

The committee noted that the insourcing of leisure services would commence no later than 2nd October 2024, following the termination notice served on Fusion Lifestyle. The revenue budget and capital programme implications of this decision will be included in the draft Medium Term Financial Strategy for 2024/25. The Director of Environment and Resident Experience has been delegated authority to novate any related contracts from the existing service provider to the Council.

The committee resolved to note the call-in of the Cabinet's decision and to recommend that the Cabinet decision be affirmed. This means that the Cabinet's original decision to bring leisure services in-house will stand. The committee also noted that the Council would be consulting with residents on the future leisure provision. The report indicated that during the sensitive contractual termination process with Fusion, public consultation activities could not realistically have taken place. Independent leisure specialists, FMG Sport and Leisure Consultancy, were engaged to design and cost various options, including insourcing and awarding a new contract. Their modelling indicated a requirement for investment in leisure services, regardless of whether provision was insourced or outsourced, due to current inflation and energy costs. The scoring methodology for the five options considered was not available due to commercial sensitivity.

The Leader of the Council emphasised the commitment to co-production and collaboration, stating that the development of the leisure service would be undertaken with users and residents over the next year. This was described as a pivotal moment in Council decision-making.

The committee also received a report from the Director responding to the call-in, which provided further detail on the decision-making process and addressed concerns raised. The call-in procedure rules, as outlined in the London Borough of Haringey Constitution, were followed.