The boss of the company which operates leisure centres in Lichfield and Burntwood says “difficult decisions” may need to be taken if the Government doesn’t add such facilities to a list of those set to receive extra support with energy bills.
The Treasury has confirmed it will reduce the amount of financial help across the board from 1st April, with the exception of those sectors identified as being energy intensive.
But swimming pools and leisure centres have not been included, meaning operators will face even higher bills within months.
Ivan Horsfall Turner, CEO of Freedom Leisure which manages Burntwood Leisure Centre and The Friary Leisure Centre on behalf of Lichfield District Council, said energy costs has already more than doubled – and warned the company did not have the cash to absorb “unprecedented costs”.
“I am extremely disappointed and frustrated as to why public sector leisure has been omitted from the list.
“Public sector leisure is one of the most exposed sectors because we are a very intensive user of utilities with energy costs a very large proportion of our overall costs particularly in centres with swimming pools.
“We have recently seen our annual energy bill move from £8million to £20million even with the temporary cap.
“Following yesterday’s announcement of a ‘discount scheme’, those figures are clearly going to increase even further and as a not for profit organisation that reinvests its surpluses back into the local community facilities we run, we simply do not have the reserves to cope with these unprecedented costs.”
Ivan Horsfall Turner, Freedom Leisure
Mr Horsfall Turner added that without additional support “difficult decisions” may need be to taken.
“I have personally written to all local MPs within the constituencies we operate and I call upon the Chancellor and the Government to urgently provide clarity about the criteria used to decide which industries are classed as being ‘energy intensive’.
“It seems incredibly hard to understand how a public library or a museum is more energy intensive than a public swimming pool.
“If this situation remains as is, there is a real risk of more not-for-profit trusts – such as ourselves – taking difficult decisions to close more facilities and services which will have a long-term, detrimental effect on the health and wellbeing of the nation as well as increasing the pressure on our already overstretched NHS.”
Ivan Horsfall Turner, Freedom Leisure
“Giving businesses the certainty they need”
The Government said it had been clear from the outset that such levels of support as those currently being offered were “time-limited and intended as a bridge to allow businesses to adapt”.
Announcing the new energy scheme for businesses, charities and the public sector, Chancellor of the Exchequer Jeremy Hunt said:
“My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able.
“Wholesale energy prices are falling and have now gone back to levels just before Putin’s invasion of Ukraine. But to provide reassurance against the risk of prices rising again we are launching the new Energy Bills Discount Scheme, giving businesses the certainty they need to plan ahead.
“Even though prices are falling, I am concerned this is not being passed on to businesses, so I’ve written to Ofgem asking for an update on whether further action is needed to make sure the market is working for businesses.”
Jeremy Hunt, Chancellor of the Exchequer
