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16
Jun 2020
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:
- Starbeck Baths set to cost £239,370 for 2019/20, an increase on the £234,193 loss for last year.
- Ripon Leisure Centre is estimated to cost £437,000 for last year, a decrease of £10,000 on last year
- Knaresborough Swimming Pool is estimated to make a loss of £398,530.
- Ripon Spa Baths is set to increase its cost on 2018/19 by more than £4,000 to £330,850
Read more:
- Community vows to fight any closure threat to Starbeck Baths
- Leisure centres, community centres and day nursery could be run by a local authority controlled company
- Council holds discussions with unions over leisure plan
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.
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.
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