Fareham Borough Council will see ‘significant financial gain’ after change to leisure centre contract
Changes to the operation of leisure centres in Fareham will provide “significant financial gain”, a council meeting heard.
Councillors at Fareham Borough Council this week approved plans to change how the council pays for and runs its leisure centre contract with Everyone Active.
Speaking at the council’s executive meeting on Monday, March 23, Cllr Connie Hockley explained that Everyone Active runs leisure centres in the borough. Under the new plan, the operator would instead act on behalf of the council.
The executive member for leisure said: “Under this revised arrangement, leisure services would be delivered by Everyone Active on behalf of the council and in the council’s name, allowing both the council and Everyone Active to benefit directly from the new VAT treatment.
“The council would retain its guaranteed income from the original tender awarded in November 2019, and receive an additional fixed annual payment, reflecting the VAT savings generated. I think it’s a win-win as far as I am concerned, and I look forward to it being set up.”
The existing leases for both Fareham and Holly Hill Leisure Centres would be replaced with an occupational licence.
This means Everyone Active would be licensed to use the leisure centres, rather than renting the space.
The cost of the change was not disclosed in the meeting due to an exclusion that cited “financial or business affairs”.
Cllr Fred Birkett, Conservative for Fareham Park, said: “The one cautious problem I had with this was to make sure the change of regulations was going to benefit this council.
“I can confirm that I am happy that this money has not gone into Everyone Active’s pocket. I wanted to make sure it was this council that was going to benefit, and I am satisfied by that.”
Council leader Cllr Simon Martin added: “I think this is another example of a prudent local authority making a significant financial gain through purely legal means. It is a significant amount of money that will help us with fuel increases that we will all be facing in the coming year.”
The decision comes after a rule change in March 2023 by the government concerning VAT. The new rule means councils can treat leisure services as not subject to VAT in the usual way, which in turn will save money.