New Forest leisure centres at risk without government support, says Freedom Leisure, as NFDC withdraws £750,000 support

THE organisation which runs the New Forest’s five public leisure centres has warned they could be at risk without more government support amid the recent surge in energy costs.

The alarm was raised by not-for-profit Freedom Leisure, which manages the facilities on behalf of New Forest District Council in New Milton, Lymington, Applemore, Ringwood and Totton.

The warning followed NFDC withdrawing a £750,000 bailout it had agreed earlier this year after “external advice” concluded the payment would have been outside the terms of the management contract, which began only last year.

Instead, NFDC could offer up to £350,000 by the end of the second year of the contract, via a mechanism based on the leisure centres’ income and expenditure.

A spokesperson for Freedom Leisure, a national group, told the A&T: “We will continue to have an open dialogue with New Forest District Council as without further government support there is a real risk to the public leisure provision that leisure trusts like ours support and operate.”

They added: “At Freedom Leisure, one of the UK’s largest not-for-profit leisure trusts, we have seen our [national] annual energy bill move from £8m to £20m, and this is despite the recent government announcement outlining the support available for businesses of a temporary cap.

“In the New Forest alone the increased energy costs amount to over £500,000 this financial year and £1.2m next financial year which we cannot just absorb.”

NFDC had initially considered the £750,000 bailout after Freedom Leisure said it was experiencing “extreme pressures in utility expenditure and projected shortfalls in income” due to a slower return of customers post-Covid.

Financial pressures faced by households across the country also impacted customer usage, it said.

The bailout would have comprised up to £400,000 for utilities and grant a two-year rent waiver of £354,000.

Freedom Leisure said it has introduced measures for customers and staff to make them more aware of energy use, such as reducing pool temperatures, switching off lights and air-conditioning units when not in use, and reducing the time spent in showers.

Speaking at a recent meeting of NFDC’s ruling cabinet, leader Cllr Edward Heron asked officers to draft a letter to government highlighting the support needed for not-for-profit organisations.

He said: “Freedom Leisure is not for profit and it is well run and well sustained, but none of these are bottomless pits and we have to be aware, if this is prolonged, I suspect the commercial ones will fall first but none of us can continue if the situation doesn’t improve.”

A spokesperson for NFDC confirmed to the A&T that neither amount previously discussed would be paid to Freedom Leisure.

It will, however, still pay a financial contribution to Freedom Leisure’s net income adjustment as per its contract.

The NFDC spokesperson added: “The variation at the end of year two, in both income and expenditure, as against the original business plan, will be shared between Freedom Leisure and the council using a mechanism embedded within the contract.

“We anticipate this will result in a council share of between £300,000-£350,000.”