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.

Read more:

• Community vows to fight any closure threat to Starbeck Baths


• How much it costs taxpayers to run leisure in Harrogate District


• Nearly half disagree with Harrogate council's leisure overhaul

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.