Community groups that set up as charities to save local pools are at risk of closing due to the cost-of-living crisis over the next year, says Community Leisure UK members.
With only one income stream – swimming – and without local authority contracts, four of Community Leisure UK’s single-site operators, of their total membership of 110 charitable trusts, say they are at risk of closing within the next 9 to 12 months when reserves are depleted. That’s 29 per cent of their membership base of single-site operators.
And if the financial situation doesn’t improve, more single-sites and larger charitable trusts will be at risk of closing within 12-24 months.
“The crisis in the public leisure sector poses a real and significant risk to many single site operators across the country. These organisations had already stepped in to save many facilities that were previously at risk of closure when local authorities were looking to close or transfer ownership of facilities. Without the safety net of local authority contracts or support from the national government, these facilities now face a bleak and uncertain future, having already done everything in their power to maximise efficiency and reduce costs,” says Phil Rumbelow, chair of Community Leisure UK.
Data from Community Leisure UK’s single-sites network shows that energy costs could be as high as a 450 per cent increase this year, with an average electricity increase for single sites this year of 308 per cent and an average increase in gas of 415 per cent.
This challenge is on top of stagnation in returning customers post-Covid, increases in purchasing costs such as chlorine and less money in people’s bank accounts to fund leisure pursuits because of the cost-of-living crisis.