Cash-strapped council awards new leisure contract

The bankrupt council says maintenance will fall on a new management company

A new management contract for leisure centres in Woking, which had been under threat of closure due to the borough council's bankruptcy, has been agreed.

Woking Borough Council (WBC) said the deal to run Woking Leisure Centre, Pool in the Park, Woking Sportsbox and Eastwood Leisure Centre in Surrey would last 10 years, with two potential five-year extensions.

The contract raised questions at a council meeting on Wednesday as WBC cannot enter new agreements for voluntary services unless they make money in light of its £2bn debts, according to the Local Democracy Reporting Service.

Councillor Ellen Nicholson, deputy leader of WBC, said: "We have much to be proud of with our sports facilities."

WBC's current leisure centre budget is £1.06m, made up of approximately £2.51m in running costs and £1.45m in fees.

The new contract is set to bring an estimated net saving of about £1.13m and will not offer any borrowing or investment options, according to WBC.

It says maintenance will fall on the new management company.

"I think that's an amazing achievement and it really is a testament to the tenacity, the resilience and seeking out the best for our residents in difficult times," Ms Nicholson said.

'Scary procedure'

Of the three bids, one stood out as being cheaper than the rest, raising questions over whether the deal had been significantly scrutinised, according to the Local Democracy Reporting Service.

Councillor Stephen Oades said: "What struck me as strange is that a third company is expecting to make 49% higher returns from operating the same assets.

"I've never seen such a result. There is no information about how they are going to achieve this miracle."

Ms Nicholson added: "I understand the hesitancy of my colleagues.

"We have been in a difficult financial position and awarding new contracts is always a scary procedure bearing in mind where we've come from."

The council meeting heard there would be a 10-day standstill period ahead of a formal announcement of the deal.