THE town’s leisure centres could be forced to close if “urgent” support is not provided to cover the cost of rocketing energy bills, the council has revealed.
Malvern Hills District Council (MHDC) is looking to slash the fee it receives from crisis-hit leisure centre provider Freedom Leisure by £287,000 as part of “urgent measures” so the struggling firm can pay its electric bills in the next two years.
Freedom Leisure, which runs Malvern Splash and Dyson Perrins and Martley leisure centres on behalf of Malvern Hills District Council, has warned it is facing “serious jeopardy” and could go under in the next six-to-nine months unless the council helps out.
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The leisure centre provider, which is also receiving support from taxpayers in Worcester to deal with ever-growing costs, said it expects bills to rise at its Malvern sites to almost £420,000 – leaving a gap of £270,000 that the council has said it needs to fill.
MHDC said it will cut the £707,000 fee it expected to receive from Freedom Leisure, as part of a 15-year contract expected to bring in £5.5 million for the council, in the next two years by £287,000 to free up some money to cover the rising cost of gas and electric.
A report, which will be discussed by MHDC's executive committee on October 25, admits that while it is ultimately Freedom Leisure’s responsibility for rising costs, the council is burdened with all the risk because opening hours and classes could be cut to save money or the leisure centres could be closed altogether.
Freedom Leisure could also terminate its contract and only give a month’s notice leaving the council in a mess and picking up a huge bill if it decided to bring leisure facilities back under its own control.
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Visitor numbers and income had increased thanks to the newly-refurbished Malvern Splash – which was completed last year at a cost of £2 million – but despite the success there, other facilities are still struggling.
Covid-19 hit leisure centres hard with two years of on-and-off closures during lockdown and as the country recovers from the pandemic, leisure centres are being hit again with many tightening their belts due to the cost-of-living crisis and either exercising outdoors or staying away altogether.
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