South Kesteven District Council funds could stop leisure centres in Stamford, Bourne and Grantham closing

A council is being asked to provide an emergency bail out or risk the immediate closure of its leisure centres.

LeisureSK, which runs South Kesteven District Council’s leisure centres in Stamford, Grantham and Bourne, has run out of money to pay its staff, leaving all three sites at risk of closure.

A formal written request has been made by the chairperson of LeisureSK for an additional £273,000 to satisfy the company’s financial commitments until the end of the current financial year.

But due to cash flow issues £150,000 of this has been identified as an ‘urgent requirement’ so the council-run company can pay staff in January.

Leisure SK has 34 full-time staff and a further 72 people working part-time. Also on its books are 100 casual staff members.

South Kesteven District Council’s cabinet is being urged to approve the funding at a meeting on Thursday next week (January 18).

“The council could choose not to approve the increased management fee request,” a report for the meeting states.

“However, this would mean LeisureSK Ltd would not be able to meet its cash flow requirements, which would result in centres facing immediate closure.”

According to the report, the shortfall of money is due to the impact of utility costs, the amount of irrecoverable VAT, and minimum wage increases.

South Kesteven District Council could use money from the Swimming Pool Fund which was given by the Government in November to support facilities in response to increased operating costs.

The council is this afternoon (Thursday, January 11) being asked to provide funding of £850,000 to save the Deepings Leisure Centre.

The council-run facility closed in 2021 due to serious safety concerns caused by a leaky roof and has stood empty ever since.