Agenda item

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 that there was no alternative plan if, following the six month review, data revealed a significant reduction in the use of One Leisure facilities.

Matters that were discussed by the Cabinet included the reasons why an alternative plan was not being proposed at the present time, whether or not the proposals would impact upon Huntingdonshire’s most vulnerable residents, the 2019 One Leisure Business Plan, the extent to which One Leisure operated as a commercial gym operator and its current position of operating the facilities at zero cost to the Council. Following debate on the matter, the Cabinet

RESOLVED

to agree to launch with Option 2 price proposal to take effect from 1st January 2023.