The Head of Environment and Leisure introduced the report which set out the discussions of the cross-party Members Leisure Working Group (MWG) regarding the issue of capital investment in the new leisure contract from April 2027, and the recommendation from the Housing, Health and Communities Committee on 3 July 2025 to make an investment of £2 million from the capital budget.

The Chair invited Members to make comments and these included:

·      Sought reassurance from the officer that a share of the £2 million capital investment would go to Faversham Pools as well as the other leisure centres in the borough?;

·      pleased to the see environmental considerations that were being made with the long term cost and energy saving;

·      how had the £2 million capital figure been decided and was it enough?;

·      had the specification documents included information on the matching investment from the successful company of the leisure contract?;

·      were officers aware of the investment figure the Council could receive from a company?; and

·      if more money could be invested from the capital budget, then it should be invested as it would demonstrate to companies that the Council was committed to improving leisure facilities within the borough.

The Head of Environment and Leisure said that he could not guarantee which leisure centres would receive the capital investment and what it would be spent on at this stage as officers needed to conduct assessments of each leisure centre and create proposals on the best way to invest the capital ensuring the facilities remained open, sustainable and costs for operating reduced. The timing of works was also a key debating point. 

With regard to the decision on £2 million capital investment, the Head of Environment and Leisure said that the Housing, Health and Communities Committee were given a number of different proposals with the cost of borrowing the different amounts. Investing in the centres would add a burden to the revenue budget which would increase if the capital amount was increased. The Housing, Health and Communities Committee made the decision that £2 million capital investment was sufficient to show bidders that the Council was investing in the facilities. He added that in the specification documents officers had included a request that the successful company should also make an upfront capital investment on the leisure centres, but there was no requirement for them to make a matching financial commitment.

The Director of Resources added that the £2 million capital investment was an estimate of the works and that if the Council received other forms of investment funds for the leisure centre, then she had the appropriate delegations to alter the amount invested as long as it was in the best interests of the Council.

Councillor James Hunt proposed that up to £3million capital investment be allocated from the capital budget. This was seconded by Councillor Mike Baldock and on being put to the vote, the amendment was lost.

Resolved:

(1)   That £2 million be added to the capital budget allocation and the revenue allocation for the capital financing to the Medium-Term Financial Plan from 2026/27 for leisure centre contract investment.

(2)   That delegated authority be given to the Director of Resources on the most appropriate sources of capital financing.

(3)   That delegated authority be given to officers to work up a robust investment plan, in liaison with the Members Working Group, to deliver the improvements based on the criteria to reduce running costs, and help meet carbon reduction challenges selecting the most appropriate time to undertake the works.