Issue - meetings

 To consider a report of the Cabinet Member for Finance & Resources.

This report seeks Cabinet approval for the Council to provide a loan facility for Life Leisure (the trading name of Stockport Active CIC) to fund the replacement of equipment, general capital improvements to centres and initiatives to make leisure centres more energy efficient. 

The proposed loan facility is of a maximum of £5m to be requested as and when deemed necessary by the Board and Executive of Life Leisure during the current services contract between the Council and Life Leisure which runs until 31st March 2027.

The Cabinet is recommended to:-

(1) Approve a loan facility for Life Leisure to fund the replacement of equipment, general capital improvements to centres and initiatives to make leisure centres more energy efficient.  The proposed loan facility is of a maximum of £5m to be requested as and when deemed necessary by the Board and Executive of Life Leisure during the current services contract between the Council and Life Leisure which runs until 31st March 2027.

(2) Delegate authority to the Deputy Chief Executive in consultation with the Cabinet Member for Finance & Resources to approve specific borrowing requests from Life Leisure under the terms of the overall loan facility, following consideration of appropriate business cases supplied.

Officer Contact: Peter Ashworth on Tel: 0161 474 2392 or email: peter.ashworth@stockport.gov.uk

The Cabinet Member for Finance & Resources (Councillor Malcolm Allan) submitted a report (copies of which had been circulated) seeking Cabinet approval for the Council to provide a loan facility for Life Leisure (the trading name of Stockport Active CIC) to fund the replacement of equipment, general capital improvements to centres and initiatives to make leisure centres more energy efficient.

The proposed loan facility was of a maximum of £5m to be requested as and when deemed necessary by the Board and Executive of Life Leisure during the current services contract between the Council and Life Leisure which runs until 31 March 2027.

RESOLVED - (1) That approval be given to the loan facility for Life Leisure to fund the replacement of equipment, general capital improvements to centres and initiatives to make leisure centres more energy efficient; the loan facility being of a maximum of £5m to be requested as and when deemed necessary by the Board and Executive of Life Leisure during the current services contract between the Council and Life Leisure which runs until 31st March 2027.

(2) That authority be delegated to the Deputy Chief Executive in consultation with the Cabinet Member for Finance & Resources to approve specific borrowing requests from Life Leisure under the terms of the overall loan facility, following consideration of appropriate business cases supplied.

To consider a report of the Deputy Chief Executive.

The report provides details relating to the Council providing a loan facility for Life Leisure (the trading name of Stockport Active CIC), to fund the replacement of equipment, general capital improvements to centres and initiatives to make leisure centres more energy efficient. 

The Scrutiny Committee is asked to comment on and note the report.

Officer contact: Peter Ashworth on 07891 949473 or by email on peter.ashworth@stockport.gov.uk

The Deputy Chief Executive submitted a report (copies of which had been circulated) providing details relating to the Council providing a loan facility for Life Leisure (the trading name of Stockport Active CIC), to fund the replacement of equipment, general capital improvements to centres and initiatives to make leisure centres more energy efficient.

The Cabinet Member for Finance and Resources (Councillor Malcolm Allan) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/ issues raised:-

·       Clarification was sought regarding how the loan facility will be repaid. In response, it was stated that it was a loan facility and no loan will be made until the structures are in place. If a loan were to be made then it will be repaid by Life Leisure and due diligence and assurances would be taken by the Council to ensure it is affordable, sustainable and repayable by Life Leisure.

·       It was commented that there would be risks, but the Council would try and mitigate those risks as much as possible to ensure that residents continue to get a provision with health benefits across the borough.

·       Members enquired about the loan facility and why that choice. In response, it was noted that the loan facility was the most transparent way forward.

RESOLVED – That the report be noted.