Agenda item

Consideration was given to a report of the Strategic Director, Communities and reform which presented options for the future of the Council Leisure Contract.

Cabinet approved the recommendation to appoint Oldham Community Leisure (OCL) in December 2012 to operate and manage the Council’s leisure facilities. The contract became operational in April 2013. The current contract, without the 5-year optional extension, was due to end on 31^st March 2023.

Under normal circumstances, pre Covid 19, the Leisure contract was performing well. The level of subsidy provided by the Council was low in comparison to other GM authorities and many nationally. The outcome and outputs stipulated in the contract were also being met.  In addition, memberships were high, the external inspections of the centres were all very good or excellent, and customer feedback was also good.  Overall financial performance was also positive.

The Covid-19 situation had presented a number of significant issues to all Leisure providers across the country, not just OCL, and sport generally due to the two forced closures and a restriction on activity in our Leisure Centres when they have been open.  In addition, strict guidance on all team sport activity and cancellations of all National Governing Body of sport has further impacted, resulting in cancellation of block bookings, a reduction in the use of facilitates and an impact on income.

The Leisure contract extension, which was a 10 plus 5 years, was due for consideration this next financial year. Initial discussion had already taken place prior to Covid to look at extending this but with some changes to the contract and additional social value activity and measures added.  If an additional 5-year extension was agreed the contract would finish at the end of March 2028.

During the lockdowns and through the pandemic OCL, as a social enterprise, had been a key partner in the Oldham community response to support our most vulnerable residents and have repeatedly demonstrated their commitment to be a provider that delivers social value.  This included offering Oldham Sports Centre as a venue to operate the foodbank from and a mass testing site with staff to support this. 

Ongoing conversations had taken place with OCL to understand the financial impact of Covid 19 and several mitigations have been put in place to reduce the running costs.  The Council would need to financially support OCL’s recovery into 2021/2022. OCL have also proposed several mitigations to reduce the expenditure during the next period. Further detail is included in Part B of the Cabinet report.

The Government had confirmed that £100 million would be made available to support public leisure facilities during this financial year.  The period is from December 2020 to the end of March 2021. Local authorities would be able to bid for money from the £100m fund.  Along with already agreed support given this will ease the financial ask on the Local Authority and ensure OCL are financially stable until the year end. 

Oldham had been successful in a bid of £530k. In addition, national discussions are also taking place with further support for next financial year and early indication is this will be a national figure of £200m to £300m which again will be a bid process but also linked to deprivation and inactivity levels and subsequently again reduce the ask financially from the Local Authority.

Option/alternatives considered – To be considered at Item 15 of the agenda.

REOLVED – That the Cabinet would consider the commercially sensitive information contained at Item 15 of the agenda before making a decision.