Southwark Council will become the first London borough to bring leisure centres back in-house after its contract with Everyone Active expires in two years’ time.
It is the second major service to return to being directly run by the local authority, after Tooley Street pledged to bring repairs back into its remit in 2018; both in an effort to drive up standards after years of outsourcing, contractors and subcontractors, but also to create employment opportunities for Southwark residents.
The council’s contract with operator Everyone Active ends in June 2023. Since the pandemic the council has increasingly explored other options after lockdown left the operator with a financial black hole the public purse had to fill.
In June 2020 we reported that Everyone Active received £1.2 million bailout from the council due to four months of closure. At the time, then-council leader Peter John warned Tooley Street’s “pockets are not bottomless”.
A report submitted to cabinet this week details that even “prior to the outbreak of the COVID-19 pandemic, the leisure contract was performing well operationally but was not achieving the expected income levels
“[Everyone Active] had cited the proliferation of low-cost ‘budget’ gyms in Southwark and the significant success of the council’s pioneering free swim and gym scheme as being major factors causing the financial underperformance.
“Both the council and [Everyone Active] were in discussion at that time about the best way to address this.”
The report also notes this could be the first in a wave of local authorities jettisoning their operators and moving fitness and leisure service back into their own management. Southwark Council is understood to be in discussions with two unnamed boroughs considering similar approaches.
A statement issued by Southwark Council last week, ahead of Tuesday’s cabinet meeting, explained: “Whilst Everyone Active has provided a good service for residents, the financial pressures faced by the leisure sector, both because of the increased competition from budget gyms, and the impact of COVID-19, have resulted in Southwark Council funding the borough’s leisure provision until the end of its contract with Everyone Active.”
The council is now planning a “seamless transition’ and “transfer of staff”, with the entire take-over process expected to cost £2.4m.
Alongside taking control of all existing centres by June 2023, Southwark Council also intends to open a new athletics centre in Southwark Park by ‘the end of the year’ and a new leisure centre in Canada Water by 2025.
Councillor Alice Macdonald, cabinet member for equalities, neighbourhoods and leisure, added: “We are excited by the opportunities that our new, in-house leisure service will provide. This decision will enable us to continue supporting many more people to live healthier lives.
“We will put residents and staff front and centre of the decisions we take so that we provide the high quality facilities and services needed to make a real difference to people’s lives.
“I’d like to thank Everyone Active’s Southwark staff for their hard work and commitment throughout the pandemic. We hope that in 2023 many will choose to stay on with us.
“We are committed to investing in sport and leisure and have many exciting plans in the pipeline. We are working hard to expand our offer of accessible, high quality facilities, for people across the borough.
“We believe that nature, arts and sports can all help to break down barriers that prevent people from thriving.”
The decision is likely a done deal, but is subject to a five-day ‘call-in period’ until early next week.
Mark Basker, Everyone Active’s Regional Contract Manager, said: “We are obviously disappointed by this news as it is a pleasure working in partnership with the council, however we respect any decision they make.
“We are incredibly proud of what we’ve achieved in Southwark over the past five years, including the redesign and refurbishment of the fitness provisions at both Peckham and Camberwell Leisure Centres in 2017.
“A number of leisure centres in Southwark were the first local authority-owned facilities in the country to have successfully achieved the ‘Fit for Business’ accreditation in 2020.
“The certificate recognises the high-quality services provided to ensure COVID-19 risk management and prevention and was awarded by nationwide Quest auditors, Right Directions.
“Prior to this latest achievement, Everyone Active has previously received recognition for its outstanding services by Sport England’s leading national quality scheme, Quest.
“Despite the recent challenges, we have remained innovative and forward thinking throughout and have introduced a wide range of digital solutions to keep people active during lockdown.
“Encouraging healthier and more active lifestyles in the borough will continue to be our focus.
“The operation of the centres will remain the same until the end of our partnership and we will of course keep our customers and colleagues informed of further details regarding the management of the centres thereafter.”