Issue - meetings

To receive a report outlining the different pricing options for One Leisure during 2022/23 and 2023/24.

Executive Councillor: S Taylor.

The Cabinet has agreed to launch with Option 2 price proposal which will take effect from 1st January 2023.

Councillor J Kerr, Chair of the Overview and Scrutiny Panel (Customers & Partnerships) was in attendance for consideration of this item.

With the aid of a report prepared by the Interim Head of Leisure (a copy of which is appended in the Minute Book) the Cabinet were acquainted with the different pricing options available to One Leisure to mitigate and offset rising costs seen in utilities, staffing and other general operational expenditure during 2022-23 and leading into 2023-24.

The Executive Councillor for Leisure, Waste and Street Scene reported that projected increases totalling £760,000 was anticipated for 2023-24 as a result of increased expenditure relating to utilities, staffing and other general operating costs. The Interim Head of Leisure then presented the three options which had been considered which included no price increase and increasing One Leisure pricing by an average of 8.7% or 12.8%. All pricing options had been reviewed and analysed with consideration also being given to a number of risks and issues which included cost of living, competition, operational costs, customer behaviour and implementation. Members were informed that the absence of a price increase would result in One Leisure operating at a £274,907 deficit in 2023-24 which would increase further in future years, impacting upon the Council’s Medium Term Programme. A significant factor in the proposal to increase prices by 8.7% related to the offsetting of utility costs which were expected to increase by £530,000. In his concluding remarks, the Interim Head of Leisure assured the Cabinet that when considering pricing opportunities, a number of concessions continued to remain available, with no increases or costs being removed for some areas.  If approved by Cabinet, the new pricing structure would take effect from 1st January 2023.

Having received responses to questions of clarification relating to the deficit experienced at One Leisure since the transfer of the Active Lifestyles Team to the One Leisure service and the categories available for various concessions offered by the service, the Chair then invited Councillor J Kerr, Chair of the Overview and Scrutiny Panel (Customers & Partnerships) to deliver the views of the Panel on the proposals.

In addressing the Cabinet, Councillor J Kerr reported that a majority of the Panel were in agreement with Option 2 as this was perceived to be the most sustainable option for Huntingdonshire residents and that there had been no price increases under the previous administration for the last 5 years. Referring to the current economic climate, it was noted that all One Leisure concessions had been more proactively advertised on the One Leisure website and that a new business strategy was being developed. The Panel received assurances that the projections for increased energy costs would remain under review together with the level of footfall and income at each of the Centres. The Panel had expressed some concerns over the loss of the swimming pool facility available at Sawtry however this facility was now under the control of another provider. In her concluding remarks, Councillor J Kerr conveyed the Panel’s concerns  ...  view the full minutes text for item 46

The Panel is to comment on the One Leisure Pricing Proposal 2023-2024 Report.

By means of a report by the Interim Head of Leisure (a copy of which is appended in the Minute Book), the One Leisure Pricing Proposal 2023-24 was presented to the Panel.

The Panel heard from Councillor Welton, who stated that he broadly agreed with the proposed option 2 price increase, remaining mindful that One Leisure needed to remain sustainable whilst staying within financial reach of residents. Councillor Welton continued that he was sure all would agree the importance and connection between physical and mental wellbeing especially after the testing nature of the previous few years. Reassurance was sought that the attendance, customer retention and new membership would be monitored  across One Leisure sites and reported back on a quarterly basis, the Panel heard that this is already covered in the quarterly reports which are seen at the Overview and Scrutiny Performance and Growth Panel. In response to a further question asking if there would be scope for centres to negotiate with local groups to secure regular bookings ensuring long term use of the facilities, the Panel were further advised that following new appointments within One Leisure, links would be established with local fitness groups to ensure that fitness remains accessible with the importance of fitness to improve mental wellbeing being noted.

Councillor Bywater stated that he felt it was important to note that in order to make leisure affordable and achievable to residents of the district, the previous administration had made no increase to pricing over the previous 4 years. This was noted to be especially important to those who were in financial difficulty and there were fears that increasing prices would potentially make leisure unaffordable for some with concerns that residents would be forced to choose between heating and food, therefore it was felt to be wrong to assume that households would have spare income to take up physical activities such as weightlifting. Further concern was expressed that the proposed model relied on consistent footfall maintained at current rates, which may not be the case if prices were to be increased and may in fact have a detrimental effect on the services and facilities provided. Councillor Bywater questioned the Portfolio holder to clarify what had been done to increase footfall and customer retention in relation to this paper. Councillor Bywater further questioned the figures shown in the Appendix to the report and requested more clarity on the comparison between the current income versus potential income. In response to both questions, the Panel heard that detailed work had been undertaken to ensure the needs of residents and accessibility were taken into account alongside benchmarking and competitor analysis.

Councillor Lowe enquired what work had been done by One Leisure on generating alternative revenue streams through use of the pools by other providers such as aqua clubs or physiotherapy services, the Panel heard that this was something which would be picked up under the One Leisure Active Lifestyles umbrella as well as continuing to work with local fitness groups to maximise  ...  view the full minutes text for item 15