Harrogate Council approves leisure services overhaul

Harrogate Borough Council will set up a new company to run leisure in the district as part of a shake-up of the service and press ahead with borrowing £26 million to invest in facilities.

Senior councillors on the authority’s cabinet last night voted to create the company, called Brimham’s Active, to run services such as the Harrogate Hydro.

The authority will also look to approach the government’s Public Works Loans Board to borrow £26 million to fund two capital projects, which include a refurbishment of the Hydro and a new leisure centre in Knaresborough.

It follows a council consultation which saw nearly half of respondents disagree with the move and residents in Starbeck vowing to fight any future threat to the area’s 150-year-old baths.

Councillors said the investment strategy and the new company go “hand in hand” and will help to reduce costs on maintenances and running leisure and sport.

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Stan Lumley, cabinet member for culture, tourism and sport at the authority, described the decision to set up the company as a “major decision” for the council.

He said: “It is the biggest financial decision for the council for many years and the investment strategy is crucial to enhance services.

“The company does what it says on the tin. It is not a privatised company, It is something I have been pushing for these past two years to make clear that it is administered by the council.”

Harrogate Hydro is among the facilities which will be run by the new leisure company.

Among the facilities that will be run by Brimham’s Active will be the Harrogate Hydro, Ripon Leisure Centre and Nidderdale Leisure Centre.

Leisure services in the district currently run at a loss of £3.5 million a year and some facilities have increased in cost year on year.

The council will spend £300,000 to set up the company through project start up costs and it is expected to operate from August 2021.

The decision will now go to a full council meeting to be rubber stamped.

Nearly half disagree with council’s leisure service shake-up

As senior Harrogate councillors decide on setting up a new leisure company to run services across the district, the responses from the public have not all been positive.

Nearly half of the 433 respondents to the council’s consultation on the future of leisure and sport said they either strongly disagreed or disagreed with the plan to set up an arms length company.

The authority is to vote tonight on whether or not to set up the company owned by the council, called Brimham’s Active, to run services such as the Harrogate Hydro and Ripon Leisure Centre.

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Within the consultation document there are a number of reasons why people don’t agree with the proposal.

One person said they were concerned that the move was the first step toward higher prices.

“Although it will be a Local Authority Controlled Company, I see this as the first step to handing over the company to a private company for profit and this would lead to higher charges in the long run.”

Another said the authority should retain control of the service.

“Given the anticipated savings are not proportionally huge, I would rather the council stayed in full control.”

Others said it should serve the interest of the wider public.

Giving over control of our wonderful leisure services to a private company (even a LACC), whose primary aim will be to generate a profit rather than serve the best interests of the society, seems a very bad idea.

Around 27% neither agreed or disagreed with the proposal, 19% agreed and 8% strongly agreed.

If given the go-ahead, the company would run services in Harrogate, Ripon, Knaresborough and Nidderdale.

The council said the company and future investment would help to save money on leisure services which currently operate at a £3.5 million loss.

But the plans have been met by opposition from both residents in Starbeck, where the local baths future would be considered by the council, and unions which expressed concern at the consultation process.

Harrogate Council to borrow £26 million to fund leisure overhaul projects

Harrogate Borough Council is expected to borrow money to fund two projects worth an estimated £26 million as part of its overhaul of leisure services in the district.

The council has linked the investment plan and the part privatisation of the service saying to two come “hand in hand” in order to save money.  However, the reality is that the two don’t necessarily have to be connected and the investment in leisure could happen without the partial privatisation if councillors chose to do this.

Two projects are lined up as part of the proposal, including refurbishing the Harrogate Hydro at a cost of £13.5 million and building a new leisure centre at Conyngham Hall in Knaresborough to replace the current site which is estimated to be £13 million.

The schemes would see an investment in current and new leisure facilities which the council said will help to reduce maintenance costs of the Hydro.

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According to a council report due before cabinet, the authority said borrowing for the projects would help to free up funds for its coronavirus financial recovery plan.

It said: “Given the unfunded nature of the capital strategy, beyond the existing five year programme (2020 to 2025), it would be prudent to fund the two schemes by external borrowing (given the council’s heavily under-borrowed position), though there may be potential to finance the design development from internal borrowing.”

When asked whether the council could invest in its facilities without a company, Councillor Stan Lumley, cabinet member for culture, tourism and sport at the authority, said the two go “hand in hand”.

He said: “The two decisions are separate but they go hand in hand.

“We need to invest in our stock to give us the best chance to save on the service. We looked at every option, compared them with each other and decided that this was the best option not just for the council but for the public.

“In order to free up our ability to provide a service, it has to be a commercial service.”

It comes as the authority’s cabinet will vote on handing over services to an arms-length company called Brimham’s Active on Wednesday in order to save money.

If given the go-ahead, it would mean facilities such as Harrogate Hydro, the Turkish Baths and Ripon Leisure Centre would be run by the new company.

The Turkish Baths, Harrogate, is among the facilities earmarked to be handed over to the council-owned company

The council’s services are currently running at a loss of £3.5 million and some centres and swimming pools in the district have increased in cost year on year.

But the leisure plan has been met with opposition from the community in Starbeck over the future of the 150-year-old swimming pool in the area and union’s raised concern over the authority’s consultation process.

Pat Marsh, leader of the Liberal Democrats group, said the authority needed to arrive at the right decision over the plan.

She said: “We have not been properly briefed on the proposal, so we have questions about it.

“Whatever decision the council makes it has to be right, because this is not a statutory service and the council does not have to run it.”

The Stray Ferret asked Andrew Jones, MP for Harrogate and Knaresborough, for a comment on the proposal but has not received a response at the time of publication.

Harrogate District leisure services cost taxpayers £3.5 million a year

Swimming pools, leisure and community centres in the Harrogate District are operating at a loss of more than £3.5 million a year.

According to a Freedom of Information request by The Stray Ferret, services run by Harrogate Borough Council are expected to cost the taxpayer £3,585,980 in 2019/20 and some facilities have increased in cost year on year.

Most facilities which are set to be handed over to a new council-owned company as part of proposals by the borough council are expected to make a loss.

The figures show that the Harrogate Hydro is the most expensive facility and is expected to cost £1,014,960 for the last year.

The total expenditure for the Hydro is estimated to be £2,168,140 in 2019/20 with an income of £1,153,180. The majority of the cost comes from staffing and additional expenses which accounts for £817,660 and £1.25 million of the bill.

Among the facilities and their cost were:

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Meanwhile, attendances at both facilities fell over the course of 12 months. The Hydro saw its attendances drop from 341,886 in 2018/19 to 322,889 last year.

The expenditure for the Harrogate Hydro as set out by Harrogate Borough Council.

It comes as the authority’s cabinet will vote on handing over services to an arms-length company called Brimham’s Active on Wednesday in order to save money.

If given the go-ahead, it would mean facilities such as Harrogate Hydro, the Turkish Baths and Ripon Leisure Centre would be run by the new company.

But the plan has been met with opposition by the community in Starbeck and was criticised by unions last week over its consultation response.

How will Brimham’s Active save money?

The total cost of running leisure services will beg the question as to whether or not the new company can make a dent in its overall loss every year.

According to a council report due before senior councillors, the company would save money through VAT benefits, business rates relief and investment in new and existing pools.

The council estimates that the company, which has a target set up date of August 2021, will save the authority around £284,000 a year which would potentially rise to £585,000 after investment in facilities.

The authority said around £222,000 a year would be saved in rate relief and £76,000 in VAT benefits as a result of handing services over to the company.

Meanwhile, the new company would have project start up costs of £300,000 which would be funded from the council’s investment reserves.