Agenda item

To receive a report from the Head of Leisure and Health updating Cabinet on the performance of One Leisure to date and of the strategic direction One Leisure is taking.

That the update report and its contents be noted.

That a further report be presented to Cabinet in six months.

By way of a report from the Head of Leisure and Health (a copy of which is appended to the Minute Book) Cabinet received an update on the performance of One Leisure which informed of the strategic direction One Leisure is taking in order to address the financial deficit.  The report explained how One Leisure is being restructured and how it intended to achieve realistic growth objectives with a reduced cost base without significant reduction to service levels. 

Councillor Harrison entered the room at this point of the meeting, at 7.50pm.

A net deficit of up to £125k is estimated for this financial year and Cabinet acknowledged that the operating loss is an improvement of £250-£300k over the previous financial year.

To assist in meeting the budget deficit the Cabinet were informed that Managers at the One Leisure sites have been informally notified of an impending management restructure and the formal consultation process would commence late March/early April.  The review is required to create an effective and focussed management structure, designed to take the One Leisure business forward and will also contribute to the £81k savings identified within the 2015/16 budget.

Cabinet were advised that as of 1st April 2015 the ‘Advantage’ membership would cease, which had been in existence for 13 years.  Instead four different membership packages had been created so that new members only paid for what they used at a fairer and more competitive price.

A question was asked regarding the expansion of One Leisure Huntingdon.  The Head of Leisure and Health explained that, subject to a full business case, the fitness studio was to be expanded into the fun zone room.  This was as a result of customer feedback that memberships were not being re-newed as the fitness studio was too busy.

During discussions Councillor Sanderson declared a non-statutory disclosable interest by virtue of his membership of Huntingdon Town Council who owns the land where One Leisure Huntingdon is sited.

In response to a question the Head of Leisure and Health explained that 9½ months was currently the average length that a person continued membership with One Leisure, which was satisfactory as it was above the national average.  However, with the introduction of the new membership packages it was expected that this would increase.

In considering future improvements it was requested that customer input be sought in addition to relying on statistics.

The Cabinet recognised that the 2015/16 budget will be challenging and there were risks attached to achieving the financial objectives.  However, there were already signs of positive improvement and growth in the district which would assist in achieving the targets.

The Cabinet expressed appreciation to officers and Members for the improvements that had already been made.

The report was not accompanied by a recommendation, which the Cabinet amended.  The Cabinet noted the update report and its contents and requested that a further report be presented in six months.  The Cabinet also requested that the report be presented to the Overview and Scrutiny Panel (Social Well-Being).

RESOLVED:

That the update report and its contents be noted.

That a further report be presented to the Cabinet in six months.