To approve the deed of variation to the leisure operating contract dated 27th March 2024 to set out the arrangements in relation to payment of the monies for the leisure investment programme, including repayment of those monies by Serco Leisure to the Council.

The Deputy Chief Executive - City & Citizen Services in consultation with the Cabinet Member for A Healthy Oxford; the Deputy Leader (Statutory) - Finance and Asset Management; the Group Director Finance (Section 151 Officer) and the Director of Law, Governance and Strategy (Monitoring Officer) to agree the terms of the legal agreement with Serco Leisure (“More Leisure) and for the £3.041m investment into Oxford’s leisure centres, to be repaid by Serco Leisure with interest via the leisure management fee, to improve our leisure centres.

During the procurement for the leisure operating contract the Council indicated a willingness to fund a capital allocation programme. In its tender, the successful tenderer Serco included proposals regarding the use of that capital allocation programme and proposals to repay the capital allocation. The arrangements regarding the capital allocation programme were not documented in the original leisure operating contract. The purpose of the proposed deed of variation is to include the capital programme arrangements into the leisure operating contract.

Options include not providing this loan, or providing less funding, but both would result in deterioration of the leisure centres, a poor customer experience and no financial return for the Council.