Eden councillors will be asked next week to approve a payment of £325,000 to help keep the lights on at Appleby and Penrith leisure centres due to soaring energy costs.
Greenwich Leisure Limited, which manages both Appleby and Penrith leisure centres on behalf Eden Council, is seeking financial support from the district council for the additional costs of energy for 2022-23 caused by the current inflationary impacts in the market.
A report due to go before councillors ahead of a full meeting on Thursday states: “The impact of not supporting would result in GLL seeking to mitigate through measures such as reducing centre opening times and above inflationary increases in fees and charges.”
It would be an additional one off payment to support GLL given the significant additional energy costs they have borne due the current economic circumstances, the report says.
It adds: “The council has worked closely with its leisure services provider GLL throughout the COVID-19 pandemic where it provided significant support to cover their contract losses due to centre closures.
“The council recognises that prior to COVID the contract was loss making, but GLL had made significant inroads into the size of the deficit, which was at that point around £200,000.
“As part of the 2022-23 budget process the council set aside £200,000 in an earmarked reserve recognising the pressure that GLL were under at the time, which was prior to the economic effects currently being faced.
“We have worked with GLL to consider a number of potential mitigations, however many and certainly those that save the most money would also result in service reductions.
“The council and GLL are committed to maintaining and where possible improving the services provided. This is particularly important at this time when access to services that support health and wellbeing is critical.
“Whilst the longer term future of the contract will fall to Westmorland and Furness Council it is imperative that EDC passes on a contract that is functioning as well as it possibly can.”
