URL: https://www.fenland.gov.uk/localgov/ieDecisionDetails.aspx?ID=1128

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: The existing contractual arrangement with Freedom Leisure for the management of the four leisure centres in Fenland is based on the Sport England template leisure operating contract. Freedom operates the facilities as “principal” meaning that Freedom is the entity that provides leisure services to the public.   Following a legal ruling this approach can be adjusted to an Agency agreement whereby Freedom delivers services as an agent of the Council, with the Council being the principal to provide a more VAT efficient way of managing the leisure facilities.   The expected savings for both parties by switching this approach is in the region of £219,000. Approximately £2,000 each per week, using a 50:50 split of the total savings value.   This report covers why a switch is possible and the benefits of such a change.  

Content: The existing contractual arrangement with Freedom Leisure for the management of the four leisure centres in Fenland is based on the Sport England template leisure operating contract. Freedom operates the facilities as “principal” meaning that Freedom is the entity that provides leisure services to the public.   Following a legal ruling this approach can be adjusted to an Agency agreement whereby Freedom delivers services as an agent of the Council, with the Council being the principal to provide a more VAT efficient way of managing the leisure facilities.   The expected savings for both parties by switching this approach is in the region of £219,000. Approximately £2,000 each per week, using a 50:50 split of the total savings value.   This report covers why a switch is possible and the benefits of such a change.   Members considered the Change in Freedom Leisure contractual arrangements to an Agency approach report presented by Councillor Boden.   ·         Councillor Christy said he fully supports anything that helps deliver best value for the taxpayer, and this is one of those arrangements. ·         Councillor Count asked if there was any chance that the Council could claim a refund on VAT paid previously. Councillor Boden said unfortunately legal advice had confirmed the answer to be no, but he was pleased to see Councillor Count asking the same question. ·         Councillor Hoy said as the contract signed with Freedom Leisure ends on a given date she wondered if the agency agreement would change this. Councillor Boden responded that there is no proposal to change the date of completion of the agreement between FDC and Freedom Leisure.   Proposed by Councillor Boden, seconded by Councillor Mrs French and AGREED to: ·         Note the report and the financial benefits of switching to an Agency Agreement with Freedom Leisure. ·         Delegate authority to the Monitoring Officer, in consultation with the Portfolio Holder for Leisure, to vary the Leisure Management Contract between the Council and Freedom Leisure in order that Freedom will run the leisure centres as an agent rather than a principal for the remainder of the contract. ·         Authorise the Monitoring Officer to execute and complete all requisite legal documentation in relation to the matters outlined above.

Date of Decision: April 27, 2026