Council chiefs say the decision to outsource management of leisure centres was the right one despite the agreement being torn up early.
Freedom Leisure had previously operated the Friary Grange and Burntwood facilities from 2018.
But the ten year deal was ended early after the operator warned of the challenges being faced in the sector due to rising energy costs.
It means Lichfield District Council has now taken back the operational management of the two sites.
But after being questioned by Labour group leader Cllr Steve Norman on the issue in a written question last week, Cllr Andy Smith, cabinet member for leisure, said the previous arrangement had delivered savings for the council.
“Outsourcing the centres when we did in 2018 was the right decision and best option for our leisure provision at that time.
The contract has provided the council with significant savings of £1,365,083 between 2017/18 and 2021/22, which has enabled the council to invest £2million in improving the offer for users, including refurbishing Friary Grange and a new aerobics studio and larger gym at our Burntwood centre.”
Cllr Andy Smith
Cllr Norman had questioned the need for remedial action at Burntwood Leisure Centre following the handover.
“There have been a number of changes to Burntwood Leisure Centre, including a ‘deep clean, since the contract with Freedom Leisure failed and the council was forced to take the facility back in-house on the 1st of April. Why was the contract was not properly supervised up to that point?”
Cllr Steve Norman
Cllr Smith said:
“The last couple of years have been difficult for the leisure industry – as it has been for other sectors of the economy. That said, we have watched the way Freedom Leisure reacted to Covid, economic pressures and more recently the impact of the war in Ukraine on energy pricing and believe their chosen response significantly negatively impacted the financial viability of the centres.
“Their commercial choices, to protect the bottom line, led to a decline in the cleanliness, condition and environment of the centres, which in turn has led to a reduction in the number of users of the centres.
This is why over the last six months we have proactively sought Freedom Leisure’s exit from the contract, along with a substantial £750,000 fee in settlement from them.
“We believe a community focussed response, instead of a purely financial one, will result in more users across the centres and new facilities we are developing and an overall more active population.
“We are investing in improving the environment and offer in Burntwood, building a brand new centre for Lichfield and extending sports and leisure facilities in the district. We are also reducing pricing to make the facilities more financially accessible to residents.”
Cllr Andy Smith
Cllr Norman said there were questions to ask about why the need had arisen to tear up the deal when Freedom Leisure had not done so with any of the other local authorities it worked with across the country.
He told Lichfield Live:
“Freedom Leisure has worked with other councils to help with the extra energy costs – and Ashford Borough Council have just awarded the trust a contract to run their leisure facilities from 1st May.
“I don’t see the evidence for that [that other local authorities will follow Lichfield District Council’s lead], only a lack of supervision of the contract and lack of support from this administration.”
Cllr Steve Norman
