Leisure company gets £975,000 loan from council

It's yet to pay back £1.6 million

Plymouth City Council’s cabinet has put its faith in its arms length company to run leisure facilities including the Life Centre until 2042 and approved a £975,000 loan to drive growth.

Councillors agreed to extend Plymouth Active Leisure’s (PAL) current contract beyond 2032 so it had time to grow the business after “a bumpy start”.

PAL, which was set up in 2022, has yet to pay back £1.6 million in start up loans from the council with the aftermath of covid and rising energy costs believed to have played a big part in that.

But it had made “remarkable progress” in recent years, cabinet members were told at their meeting on Monday.

Fitness memberships had nearly doubled, income had grown by  29 per cent and swim school memberships were up by 31 per cent.

Cabinet member for sport Cllr Kate Taylor (Lab, Ham) said PAL had made a “huge contribution to the city” and had “real ambition”.

Extending the contract would allow PAL to pay back its loans and invest for the future.

In four years it had “strengthened its financial position, improved operational performance, delivered a new gym at the Life Centre and invested in new facilities at Tinside Lido.

“But this is not just about providing sport and leisure,” she said. “PAL tackles inequality and inactivity, supports people with long term health conditions, works with families, partners with Derriford Hospital on physiotherapy services and will soon support residents on the weight management waiting list.”

She described PAL’s chief executive officer Rhys Jones as an “exceptional steward for this organisation and we are very lucky to have him”.

A report to the cabinet said the executive team had also been strengthened with new appointments made to deliver a high-class service and considerable time had been taken to ensure that the business plan was robust; a new strategic vision had been established, and financial planning been done to set PAL on the right path to success for the future.”

The cabinet heard that the Life Centre was a key venue for sporting events like elite diving and swimming championships and the base for Plymouth Raiders. 

Under PAL’s leadership Mount Wise Swimming Pools would continue to be free to users making sport “open and accessible for everyone”.

Cllr Taylor said PCC was giving PAL the stability it needed to keep improving the facilities, widen participation and would help the city to find the next generation of world class athletes – “the next Tom (Daley) or Tonia (Couch)”.

Financial reports predicted a budget surplus of £2 million by 2042 and a reduction in the subsidy given by Plymouth City Council from £493,000 to £55,000 by 2035/36.

Director of public health Steve Maddern said PAL went “over and above” the health and wellbeing offer and the money put in by the council

“The start was a bit bumpy… but the ambition driven through the Pal Board puts it in a good position to drive it forward in the future,” he said.

The contract to March 2042 will include the provision of a break clause in 2035/36 should the business fail.