Sports centres and swimming pools in the Valleys face uncertain future with trust on brink of collapse

The future of some leisure facilities in south Wales is uncertain with the company which runs them on the brink of collapse. Aneurin Leisure Trust (ALT), which runs sports centres at Abertillery, Ebbw Vale and Tredegar as well as Parc Bryn Bach and Bedwellty House, posted an £888,000 deficit for 2023/24.

The trust had an income of £7.749 million but an expenditure of £8.637 million. Despite a 15.3% growth in income the trust is forecasting an overspend of £375,000 this year.

Trust director of operations Phil Sykes said in 2023 and 2024 the trust faced “extreme challenges outside of the trust’s control”. “Utility costs had risen by an unprecedented 200% as well as inflation starting the year above 10%," he said.

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“Cost efficiencies including the temporary closure of a pool were explored and discussed with the strategic board. It was agreed reserves would be utilised throughout the financial year with monthly reviews of the finances to flag any major concerns should reserves be exhausted and additional support be needed.”

The perilous financial position ALT finds itself in will be laid before Blaenau Gwent councillors at a meeting of the county borough's council's partnerships scrutiny committee on Wednesday. Mr Sykes said staff had worked hard to increase gym memberships, swimming lessons and catering across the board.

But he added: “As a result of utilising reserves to maintain all services through 2023/2024 the trust will require discussions with Blaenau Gwent to establish options for delivering services for the future. The trust is confident in how the services are being delivered with increased year on year income of £663,000. However, with operational costs increasing by unprecedented levels it is very clear that the current financial package provided to deliver the services leaves an unachievable shortfall."

Mr Sykes pointed out that the council's decision in this year's budget to freeze the management fee is in reality a cut of £135,000. Councillors will be asked to either advise which services the trust should "reduce, realign or stop" or look at increasing the management fee "significantly above" what is currently agreed.

There is no proposal to bring leisure services back under the direct control of the council. Recommendations from the committee will go to a full council meeting soon.

The trust is a not-for-profit organisation established in 2014 which delivers leisure, learning and cultural services across Blaenau Gwent and receives an annual management fee from the council which was £3.171 million last year. The council has a 30-year agreement in place which is due for renewal every five years. The current five year period comes to an end in March 2026.