South Kesteven District Council saves leisure centres in Stamford, Bourne and Grantham from closure by handing over £273,000 to LeisureSK

A council has provided an emergency bail out fund to save its leisure centres from immediate closure as it’s revealed their management company is losing £2,000 a day.

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

Cabinet members yesterday afternoon (Thursday, January 18) approved handing over £150,000 which will go towards paying staff salaries at the end of the month. It is a forward payment of £273,000 which was requested by the company.

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

Cabinet member for finance Coun Ashley Baxter (Ind - Market and West Deeping) said: “Of course as an individual and as a cabinet we are wholly committed to keep leisure facilities available to people across the district.

“We have no intention of allowing leisure centres to close across the district.

“We would like to send a message of reassurance to staff at the centres.”

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

Cabinet also agreed that urgent independent assessments of LeisureSK’s business plan, profit and loss account, and governance model need to be taken to ensure they are fit for purpose and effective.

Using other leisure providers or insourcing in the future will also be considered.

“We can’t carry on with an organisation which loses £2,000 a day without looking at alternatives to running that service.

“This has been a wake up call.”

He added: “We are fully committed to doing something about it and trying to improve the situation to ensure we have value for money, efficient, effective, economic facilities across the district.”

At a governance and audit committee next Wednesday (January 24) councillors will consider a vote of no confidence in the board of LeisureSK.

Last week, district councillors approved an £850,000 grant for those trying to save Deepings Leisure Centre.

Stamford’s leisure pool was closed this week due to a broken boiler.

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