Takeover blamed for £2m council overspend

The authority spent more than £7.2 million on leisure services between 2012/13 – exceeding its budget of £5.2 million.

Council bosses say the real overspend is only £304,000 with the other £1.7 million the result of factors such as building depreciation costs.

They say the money has been clawed back though cuts to other parts of the budget.

Councillor Gwilym Butler, cabinet member for leisure, said: "The controllable overspend concerning leisure services in 2012/13 was £304,000.

"The additional £1.769 million relates to capital charges against the leisure centres which are reversed elsewhere in the council's accounts and so have no impact on the council taxpayer."

A council report blames part of the overspend on the outsourcing of five leisure centres to a private firm last year.

Market Drayton Swimming Centre, Oswestry Leisure Centre, Shrewsbury Sports Village and Indoor Bowls Hall, Whitchurch Swimming Centre and the Quarry Swimming and Fitness Centre were all taken over by Serco last August.

The report said: "The majority of the overspend relates to a £232,000 pressure on the five centres being outsourced.

"This includes £89,000 associated costs for external legal advice for the outsourcing project and £116,000 for capital works at the centres."

But Councillor Butler said the overspend would not impact on leisure services this year.

He said: "We are extremely passionate about providing excellent public services to our residents and the appointment of the Shropshire Community Leisure Trust offers better value for money for local people in the long term, new capital investment in the council's leisure facilities, and guarantees the ongoing provision of excellent leisure services within some of our main market towns."

The report added bad weather earlier this year had affected council leisure services income.

Mr Butler, said: "Circumstances including Meole Brace Golf Course losing 57 days of play during the wettest year on record and long periods of freezing conditions are contributing factors."

A spokesman for Telford and Wrekin Council said it was reducing the cost of its leisure service.

He said: "All our services remain in-house and the council and the base budget for leisure centres was approved as part of wider budget strategy.

"Leisure is a service area where the cost of the service can actually be reduced by improving the offer and thereby increasing use and income."