Broxbourne Borough Council runs its own sports provision through the Broxbourne Sport service. Over the last 10 years the service has gone from an operating loss to a trading budget surplus, which is used to improve the facilities and increase participation. This has already saved more than £700,000 from the council’s capital programme budget.
Background later. The financial benefits of outsourcing the delivery service were not perceived as significant, and there was a recognition that efficient inhouse performance would be beneficial for the council – both financially and in terms of achieving corporate priorities. The facilities include two leisure centres and a golf centre.
Back in 2006/07, the sports centres service was operating at a cost to the council of £386,000. By 2017/18, the trading budget surplus was £1.3 million. From that, Broxbourne Sport pays a management fee back to the council of £356,000 a year, rising to £506,000 in 2018/19. The council also receives a recharge payment for its central services of a similar value.
Broxbourne’s corporate priorities for 2017- 20 include ‘enhancing the quality of life’. The objectives for this priority include helping residents to have a healthy lifestyle and encouraging a sense of community through events, leisure activities and volunteering.
Impact and outcomes
Over the past 10 years, income from the sports centres has increased by £1.5 million (42 per cent) while usage has increased by 144,000 visits a year (34 per cent). Broxbourne Borough Council has set itself the target of being financially independent by 2020 while protecting internal back-office services, and is on track to achieve this. The financial performance of the sports centres, along with the management fee contribution, are helping towards this goal.
This improved financial performance is attributed to a range of issues, including:
- enhanced membership practices
- streamlined fees and charges
- enhanced ‘learn to swim’ practices
- more efficient staffing (staffing costs have reduced year-on-year).
In 2013/14 the council invested £4 million to re-develop the Laura Trott Leisure Centre. Since then, usage has increased by 76,000 visits year (18 per cent) and turnover has improved by £900,000 (29 per cent). The cost of the investment will be paid back in just over four years.
Surpluses generated are put into a sinking fund/reserve account and used to fund equipment replacement or facility refurbishments – costs that would have previously been funded by the council’s capital programme. To date (October 2017), this account has received £1.2 million and the improvement commitments from it total £715,000.
Broxbourne Sport represents the council at the borough’s Health and Wellbeing Strategic Group forum. It has been involved with a successful bid to Sport England to match-fund a three-year GP referral scheme managed by a local ‘get active’ specialist. This collaborative working has so far helped around 500 inactive residents to take up a more active lifestyle. The sports centres facilitate many of the scheme’s activities and have introduced a low cost gym membership package, which has been well received by residents. Partnership work is also underway with Herts Sports Partnership, Hertfordshire County Council’s public health team, Lea Valley Health and local schools.
In 2017, Broxbourne Borough Council won the Local Government Chronicle award for ‘entrepreneurial council of the year’ in recognition of its financial resilience, its ambition and its robust plans to bridge the funding gap.
Councillor Dee Hart, Cabinet Member for Leisure and Culture, said: “The council recognises the role that it plays in providing community leadership in matters of health and physical activity. We are proud of the services and facilities that we offer in-house that help to make a positive difference to people’s health and wellbeing, such as our leisure facilities, parks and open spaces and cultural facilities.
The quality and scope of our ‘offer’ has improved in recent years through a combination of sound management and investments made on the strength of robust business cases. We look forward to working with our community partners going forward to help tackle the key health issues, in collaboration and partnership.
Key learning points
- In-house sports service provision can provide an opportunity for councils to generate income which can be reinvested to improve the facilities and increase participation.
- It can also enable a closer alignment to the council’s corporate objectives, such as helping residents to have a healthy lifestyle and increasing community cohesion through events and leisure activities.
Contact
Wesley Hutchins
Head of Broxbourne Sport
Broxbourne Borough Council
[email protected]