Financial support to keep Wave-run leisure centres open is agreed

At a cabinet meeting on Thursday (September 24), council leaders signed off on proposals to loan up to £500,000 to the Wave Leisure Trust, in an effort to help the business weather the impacts of Covid-19. 

Like others in the sector, Wave was told to close its leisure centres between March 20 and July 25 as part of the coronavirus lockdown, having a major impact on its main source of income.

Cllr Ruth O’Keeffe, cabinet member for Tourism and Devolution, said: “Significantly, Wave has previously demonstrated to us that it has increased participation and reduced health inequality across our district, as well as improving accessibility and social inclusion.

“It is important that we support the continuation of this excellent work.” 

While its leisure centres are now open in a limited way, council papers say Wave will face a “non-recoverable deficit” of £1.5m by the end of March 2021, largely as a result of lost income.

According to council papers, Wave is in a particularly difficult position because it falls through the gaps of many of the government’s business support packages.

For example, its status as a trust prevents it from gaining assistance under the Business Interruption Scheme, while its high value buildings (i.e. the leisure centres) makes it ineligible for business support grants.

Prior to coming to cabinet, the loan proposals were considered by the council’s policy and performance advisory committee.

Conservative councillor Liz Boorman – a member of that committee – put forward their views. She said: “There are a couple of recommendations which came from the committee.

“One was that cabinet write to the government and ask that their financial support be provided for leisure centres such as Wave. Those that are a charity and haven’t been able to receive the founding streams that have already been put out.

“We also discussed how, if Wave did go, the council would still have obligations to the buildings. So rather than being a loan, could it be a grant? Or if it was decided it had to be a loan, whether that could be an interest-free loan?

“It would just be to show our support for Wave. They are a benefit to all in the district.”

Cabinet accepted the recommendation to write to the government, although deputy council leader Zoe Nicholson said she suspected it would “fall on deaf ears”.

She also described the situation Wave is in as a “desperate unfairness”

Cllr Nicholson said: “Ten years ago the statutory for local authorities to provide leisure centres ended. As a consequence, this council actually had the foresight to create a charitable, not-for-profit trust using assets which are partly owned by us and also partly owned by East Sussex County Council.

“The absolute unfairness of the situation we now find ourselves in  is had we not done that then we would be eligible for compensation. 

“The fact is we’ve done something over the last 10 years  -[and] we as an administration can’t take credit for that – which is not only a going concern but also brings such benefits to the community. [That it] is not eligible for government funding  is frankly shocking.”  

She also added that the council would review the grant or loan arrangements in the future.

Council papers say the business has produced a three-year financial model which sees it move from a £1.5m loss in 2020/21 to a £130k surplus by the end of 2022/23. 

This assumes a rebuilding period in 2021/22 where the leisure trust brings in around half of its previous membership income, due in part to continued social distancing measures.

However, the council says it is unlikely that Wave will be able to provide work for all its employees going into the future and it may have to make redundancies. 

Wave also provides leisure services in partnership with Eastbourne Borough Council and East Sussex County Council as well as others, including East Sussex Public Health and the NHS. 

As part of this it plans to reopen in three phases with a focus on providing gym, swim and booked-only group exercise classes.  

Covid-19 safety measures include: the removal of turnstiles; erection of screens at reception points; hand sanitiser stations; and one-way systems.

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