New sport centres funding plan raises concerns

Plans for new leisure centres in Chester-le-Street and Seaham were revealed in 2020

Plans to pay for new leisure centres with money generated from a development marred by issues and delays have raised concerns.

New facilities in Chester-le-Street and Seaham could be funded by the Durham County Council's proposed purchase of Milburngate - a leisure and hospitality development in Durham City, a council meeting heard.

Labour Councillor Alison Batey said she was pleased there was a commitment to leisure facilities but that there were "huge risks" with the funding proposal.

The local authority said it "remains committed" to new facilities when the "financial capacity exists to fund these investments".

The Milburngate complex, which includes flats and a cinema, was scheduled to open in 2022, but was delayed by the construction company entering administration and fire safety worries.

Batey, councillor for Pelton near Chester-le-Street, said: "The money that will potentially be generated from Milburngate is dependant on occupancy and everything else that comes with it.

"It seems like a sweetener but the reality is there are huge risks."

The council had proposed the new leisure centres in 2020, and said it remained committed to the £109m project, despite admitting its delivery was not affordable.

'Exceptional circumstances'

A council report presented to its corporate overview and scrutiny management board meeting, said using capital investment to fund the leisure centres would "not be financially prudent" and would "invariably result in additional cuts to front-line services".

Labour leader Carl Marshall criticised the council's potential funding model, the Local Democracy Reporting service reported.

Marshall told the meeting: "Why on earth have we got a report that tries to link potential investment in leisure centres that we were promised years ago and are now being rowed back on, on the profit from Milburngate?

The council said it could not predict how much money would be made from the Milburngate development.

Rob Davisworth, head of corporate finance and commercial services, said the council included the proposal because it recognised the issues around the promised leisure centres.

"We have not forgotten about them and there have been a number of exceptional circumstances which have driven us to this point," he said.