Swimming pools at Burgess Hill's Triangle Leisure Centre and Haywards Heath's Dolphin Leisure Centre not at risk

The district council signed a contract with Places Leisure in 2014, handing over management of the area’s three leisure centres in return for an annual management fee of £1.4m.

The pandemic threw a spanner in the works, with the council having to take on the operational and financial risk of the three centres, as well as losing the management fee.

Those Covid requirements ended in March and the council is now in contract negotiation with Places Leisure, intending to return things to their pre-pandemic position.

At the moment, the company pays a reduced management fee of £600,000.

Figures presented to a scrutiny committee meeting on Wednesday (November 16) showed that, while the first half of the 2021/22 financial year performed some £400,000 better than had been forecast, by March things had been turned on their head.

The forecast position for the end of the year was -£788,727 but the actual position was -£1,244,151.

Robert Anderton, assistant director for commercial services & contracts, said: “Obviously, what we’re now encountering are a whole new load of headwinds in the form of the financial crisis, particularly the cost of fuel and energy, which have a disproportionate effect on operations such as leisure centres, which are very energy hungry.”

A report to the committee said energy costs for the three centres from November to March had been an average of £175,000 per month, compared to the £80,000 average per month before the pandemic.

Some authorities have attempted to reduce their leisure costs by cutting opening hours and closing swimming pools – which require a lot of heating.

Mr Anderton assured the meeting that Places Leisure had not suggested taking that route and it was not something the council was considering.

Questions were asked about what contingencies were in place should Place Leisure fail or decide to give back the contract.

Mr Anderton said: “We have contingency plans should that happen.

“However, the aim of this exercise is very much to avoid that from happening so we can work alongside a good contractor to get us back to where we both want to be in terms of our operation.”