‘Devastated’ trust which runs Peterborough festivals, gyms and libraries ‘hands back’ contract to city council

Vivacity employs around 500 people in the city - who now face an uncertain future - and was set up a decade ago as a not for profit trust to run Peterborough’s leisure facilities.

In a statement today (June 18) Vivacity said the move is a direct result of the financial impact of Covid-19,

Peterborough’s charity for culture, leisure and heritage, said it will terminate its contract with the City Council.

This has triggered a 90-day transition period during which Vivacity will work with the council to transfer back services as the council makes decisions on future delivery models including 10 libraries, the Key Theatre, museum, Lido, Flag Fen, Regional Pool and the health and leisure facilities at Bretton, Dogsthorpe, Hampton, Netherton, Orton and Werrington.

Since the announcement of the national lockdown on 20 March, Vivacity’s facilities and services have been closed and 98 per cent of its 500 employees placed on furlough.

This has had a devastating impact on the charity’s revenue with an estimated £8 million loss of annualised income.

In addition,Vivacity is expecting a slow return to previous volumes of gym usage which drives the bulk of the income to support its full range of services.

The leisure/fitness sector is widely predicting customer volume and revenue will be down by as much as 50 per cent with recovery taking up to 18 months from the

lifting of lockdown restrictions.

Stewart Francis, chair of Vivacity trustees, said: “This has been an extremely difficult and painful decision to make. We are devastated.

“Vivacity has been caught in a perfect financial storm. Covid-19 has switched off our revenues for 13 weeks already. There would be significant costs of re-opening and we are predicting a major loss of income as we implement social distancing and reduce capacities. This immediate shock comes alongside the well-publicised budget pressures of the Council that have resulted in continued reductions in its contributions to Vivacity.

“Regrettably, given this combination of financial pressures, the Trustees cannot see a viable future that allows Vivacity to continue to deliver its charitable objectives to promote health and well-being and arts and culture in the city.

“We have concluded that the only option for Peterborough and for the charity’s employees is to give notice to terminate the contract with the Council as of 18 June

2020.

“The Trustees recognise how vital culture and leisure services are to the people of Peterborough. This decision has been made with enormous regret and only after we have made exhaustive efforts to find a way forward that could have guaranteed a sustainable future for the charity and the services it provides. We are proud of what Vivacity has achieved over the last ten years and of the immense efforts of our people, including our hundreds of passionate volunteers.

“We will now work closely with the Council to support our employees as far as possible. I am acutely aware of how difficult this situation will be for them.

“It is their efforts and the fantastic support of our 116,000 customers that has enabled Vivacity to help put Peterborough on the cultural map and make such a difference to the lives of those who live here.”

Since its creation in 2010 Vivacity has worked with many partners to deliver a greatly enhanced leisure and cultural offer for Peterborough. A recent independent study calculated that the charity contributes £60 million of social value to the city every year. Over that time, it has also increased its revenues by 177% and enabled a 70% reduction in Council funding. Vivacity’s services attract over 1.8 million visits a year. Peterborough has also benefitted that while others have seen library closures,

Vivacity has been opening more of them, including the book bus. Vivacity is not insolvent and has sufficient financial reserves to manage the transfer of the contract back to the Council and to honour all outstanding financial commitments.

Mr Francis added: “I fervently believe that culture and leisure are essential to the fabric of any flourishing, modern city. They make a place vibrant. They help people to live healthy, fulfilled

lives.

“But like any other service they need a secure financial future if they are to thrive. The financial impacts of Covid-19 could be existential for many of these essential services. I fear that without significant Government financial support we will see services such as theatres, museums and libraries closing across the country.”

North West Cambridgeshire MP Shailesh Vara said; “This is a sad day for Peterborough and the surrounding area. Vivacity has been a central part of the local community for many years and its contribution, in so many ways, has been immense.

“I have spoken with Vivacity’s chairman, Stewart Francis, and I know this has been an incredibly difficult and sad decision for him and his trustees to make.

“I want to thank Stewart and his fellow trustees, along with Peter Appleton, chief executive officer, for all they have done in recent weeks to try to find a solution in these difficult times.”

Peterborough MP Paul Bristow said: “This morning I have spoke with the chair of Vivacity and the city council chief executive who have both reassured me that they will work together on an orderly handover to ensure the strong leisure and culture scene in Peterborough thrives when lockdown lifts. Vivacity have been part of the Peterborough story for quite a few years and it’s sad to see them go.

“I can understand their decision as COVID-19 has meant no one has been visiting gyms, libraries and other facilities. I thank Stewart and his team for their service to our city.

““We now need to look forward so the public, service users and of course Vivacity staff are all reassured about the future.

“I am confident the best is yet to come for our City and this means thriving leisure and cultural services. When lockdown is lifted we need to support and use these services.”

City council says it plans to ‘build on’ Vivacity services as Peterborough leisure charity collapses