Running cost of Scarborough and Whitby's leisure facilities set to rise due to energy bills

At a meeting of the audit committee on Thursday January 26, councillors were updated on the financial standing of the council’s “key partners” including Scarborough Museums, Culture and Creative Trust, YORhub, and Sports and Leisure Management Ltd.

The committee heard that most of the authority’s partners are in “good financial standing” although the leisure operations were “flagged” due to the impacts of Covid-19 and rising energy bills

Kerry Metcalfe, Scarborough Council’s corporate finance manager said: “The progress that those organisations are making in terms of post-Covid recovery is reassuring and financially things are going back to pre-Covid levels.”

Scarborough Council outsourced the running of its indoor leisure sites to Sports and Leisure Management Ltd (SLM) – operating under the Everyone Active brand – in 2015.

The organisation operates Scarborough Sports Village and the Whitby and Pindar leisure centres under a 10-year contract.

Rising utility costs nationwide were also highlighted as a risk, with the committee told that a £114,000 increase in associated utility bills was expected next year due to “extraordinary fluctuations in the energy market”.

However, a council report notes that if the price increase does occur, the resulting budget shortfall will be managed by the new North Yorkshire Council, which is set to replace Scarborough Council on April 1.

“We have a benchmarking clause within our operating agreement with SLM that allows utility costs to be benchmarked,” Ms Metcalfe added.

“When utility prices increase, the benefit of the additional costs is passed on to SLM, so it is a risk that is picked up by the council in its entirety.

“Next year, we are looking at just over £100,000 uplift in utility costs against our leisure services. We have picked that up with North Yorkshire Council and they have incorporated it into their budget.

“Overall, we are comfortable with the financial standing of our organisations.”

At the meeting, Cllr Rich Maw said that the use of solar panels should be explored to cut down on energy costs and protect the environment.

Meanwhile, Cllr Heather Phillips raised the issue of funding that has been “ringfenced for maintenance and repairs” at the Rotunda Museum.

She urged the council to “insist” that works are carried out before the obligation passes to the new North Yorkshire Council on April 1.