Decision details

The Deputy Leader and Cabinet Member (Health and Wellbeing), Councillor Michael Titherington, presented the confidential report of the Director of Communities which requested additional funding from South Ribble Borough Council due to extraordinary and unbudgeted increases in energy and salary costs at South Ribble Leisure Limited.

Members debated the proposals, including Councillors Karen Walton and Phil Smith. 

It was proposed by the Deputy Leader of the Council, Councillor Mick Titherington, seconded by the Leader of the Council, Councillor Paul Foster and subsequently

Resolved (unanimously)

1.     To note the current forecast financial position of South Ribble Leisure Limited and the requirement for additional funding.

2.     To approve the request for additional resources of £154k on a recurring basis as part of the cost of the Leisure Contract payment, and £500k on a non-recurring basis in 2022/23. These requests are to cover the financial impact of:

a.         The estimated increase in the cost of utilities of £500k – assumed to be a non-recurring cost at this point but to be reviewed for 2023/24 as part of the budget setting process;

b.         The increase in the cost of the pay award estimated to be approximately £100k – recurring increase in the cost of the Leisure Contract;

c.         The increase in the costs of the SLA provision of £54k – a recurring cost to the Leisure company from the Council in respect of services provided which were understated in the original budget.