Finance chiefs identify cash to avert 'worst case scenario' for Edinburgh Leisure

The cash injection for Edinburgh Leisure will include £800,000 to enable the organisation to return to paying all staff the real living wage – £12 an hour – after it opted out of the voluntary scheme last year to save money.

Financial pressures have intensified for the publicly-owned arms-length company due to increased energy bills and inflation in recent years, culminating in a forecasted £3.6 million deficit for the year ahead.

Internal documents shared with the Local Democracy Reporting Service this month showed the potential closure of eight sports facilities, including Kirkliston Leisure Centre.

Presented to Edinburgh Leisure’s board as part of “worst case scenario” financial planning for 2024/25, it would have saved just under £2 million. Other measures to balance the books under consideration included reducing centres’ opening hours, raising charges and reviewing employees’ pension contributions.

The shortfall has since reduced to £3.2 million which will be met by the council if approved when the budget is set next month, a report to this week’s finance committee confirmed.

Council leader Cammy Day said he was “committed to providing quality sport and leisure facilities for our residents”.

He added: “The Labour-led administration have been working alongside senior council colleagues to ensure we safeguard these facilities and I am proud to say that we’re finding the funds in our council budget, set later next month, to do so.”

SNP councillors welcomed the move but accused the administration of “choosing to hold off” funding and “allowing staff to be paid poverty wages and putting our leisure centres at risk”.

Lib Dem group leader Kevin Lang said it was a “huge relief” money had been found to keep Edinburgh Leisure’s venues open, adding: “It was frightening to hear that some leisure centres and swimming pools were at risk.”

The additional monies will be made up of £1 million Covid support funding due to be allocated to Edinburgh Leisure over the next three years but now being accelerated in 2024/25, with the rest directed from “other sums previously set aside for continuing Covid impacts”.

The report added: “The precise profile of this funding will be subject to further discussion between the council and Edinburgh Leisure as this revised model develops and the final deficit figure is agreed.”

Councillor Day added: “Physical activity is vital for the physical and mental health of our city and is a key priority.

“I’m incredibly grateful to finance and resources convener Councillor Mandy Watt, senior council colleagues and Edinburgh Leisure for their huge efforts.

“We’re also working to find a resolution on paying the real living wage to Edinburgh Leisure’s employees.

“However, we also need to face up to the stark financial situation that we currently find ourselves in.”