Leisure savings which could exceed £1m won't go towards hydrotherapy pool, council confirms

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The council plans to create a cost-saving company to run services such as the Lido and Regional Pool

Peterborough City Council (PCC) plans to establish a new subsidiary company to manage services such as the Lido and Regional Pool.

The not-for-profit would be part of Peterborough Ltd, the council-owned company set up in 2019 that currently runs those services.

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The benefit of this, PCC says, is that it could potentially receive VAT exemption and National Non-Domestic Rates (NNDR) relief, reducing operation costs by more than £1.3 million per year.

The hydrotherapy pool shut down in 2022The hydrotherapy pool shut down in 2022
The hydrotherapy pool shut down in 2022

While it’s too early to say exactly where any money saved will go, PCC has confirmed it’s not considering putting it towards re-opening St George’s Community Hydrotherapy Pool which closed down last year due to rising costs.

A spokesperson said: “These are estimated savings at present; however, the intention is that they will offset the cost of providing leisure services and support our drive to become a financially sustainable council in the long-term.

“For that reason, we can confirm that any savings will not be used to provide hydrotherapy provision.”

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Creating the new subsidiary company is part of a longer-term change in the way council leisure services are delivered.

In 2020, services that were being managed by the Vivacity Leisure Trust were transferred to Peterborough Ltd (although the branding was retained).

As well as the Lido and Regional Pool, these included the Jack Hunt Pool, Swim Academy, Vivacity Premier Fitness and the Hampton, Bushfield and Werrington leisure centres.

It also included the hydrotherapy pool, primarily used by people with physical and learning disabilities.

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At the time, an agreement was drawn up between PCC and Peterborough Ltd that it would deliver these services with a financial subsidiary from the council until 31 March 2024.

The need for this subsidiary to be paid would be removed by the establishment of the new company, PCC says.

Beyond that, more change could be on the way.

In a council report on the new company’s creation, officers note that PCC is undertaking a formal review of leisure services “which seeks to identify a long-term operator”.

The council's cabinet, led by leader Cllr Wayne Fitzgerald (Conservatives), agreed to setting up the new company this week.

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But the council must first seek legal, financial, procurement and taxation advice before it can proceed.

It has confirmed that it will seek this advice externally.

More details around potential savings are expected in future.

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