More on KentOnline
More on KentOnline
Negotiations are underway which could see Maidstone Borough Council (MBC) cover the losses incurred by the town’s leisure centre during the pandemic.
Serco Leisure runs the site but the management is overseen by a leisure trust and MBC. Serco Leisure is now asking MBC for financial support, although it is not yet clear how much.
The news was revealed in a report presented to the policy and resources (P and R) committee on November 25 and comes as MBC faces a budget gap of more than £2million for next year, with cuts to services predicted.
The report reads: “Serco Leisure have indicated that they propose to take advantage of their contractual position and recover their losses from MBC, less £5,000 which would be payable by the leisure trust. Details remain subject to negotiation.”
The difference between the centre’s actual and budgeted income and expenditure “may be mitigated” if the council is successful in bidding against the £100 million Covid-19 fund from the government to compensate leisure providers.
Cllr Fay Gooch, a P&R committee member couldnt’t comment on specific negotiations, but said: “In general terms and in an ideal world it would be wonderful if the council could just carry on paying subsidies to any kind of business, not just The Hazlitt or Serco, in this terrible situation we are in.
“Unfortunately in the real world the money just isn’t there. Our priority is helping the vulnerable and the homeless.”
“The leisure centre plays such a key role in our residents health and wellbeing. It isn’t an easy decision.
“Should we be subsidising big companies? Generally speaking no we shouldn’t, but these are difficult times.”
She added: "What I hope is we can do as much as we can to enable companies, whatever the size, to survive through the pandemic.”
Clive Bradburn, chairman of the Maidstone Leisure Trust said: “We are in discussions with MBC around securing support to mitigate the financial losses our facilities are suffering.
"Since the lockdown back in March, we have done everything we can as leisure trust to mitigate these losses such as use of the furlough scheme as well as various operational efficiencies all focused on cutting costs across our sites. Efficiency savings are ongoing and will continue now the lockdown has eased.
“As restrictions ease, we will be looking to rebuild demand, get people back into our centres, providing safe exercise options for all, and looking to once again bring revenue to our client, MBC.”
An MBC spokesman said: "MBC works with Maidstone Leisure Trust and Serco Leisure to deliver leisure services at Maidstone Leisure Centre.
"We are working together to manage the impact Covid-19 has had on the leisure centre and its 2020 budgets. The government has announced a £100m fund to help cover some of the Covid-related costs and the three parties will be working together to submit a bid when the fund is open for applications.
“Maidstone Leisure Centre and Mote Park Outdoor Adventure have been open, when permitted by government restrictions, and have provided sport and leisure opportunities in a Covid-secure way when possible.
“As we are currently working with Maidstone Leisure Trust and Serco Leisure to reach a common position we are unable to comment any further at this stage.”
The leisure centre opened on Wednesday.
