a path leading to a leisure centre
Pontypool Active Living Centre in Pontypool Park Credit: LDRS

A GWENT council has agreed to pay a firm that took over the running of its leisure centres an additional £400,000 this year. 

Hereford-based Halo Leisure Services, which is a registered charity and social enterprise, has been responsible for running Torfaen Borough Council’s leisure centres, that include Cwmbran Stadium and the Pontypool dry ski slope, since April this year. 

It was awarded a ten-year contract after the council ran out of patience with the Torfaen Leisure Trust, it set up in 2013 to run the centres, after it required a further financial bailout in July 2024. 

The council is due to pay Halo £9,016,508 over the 10-year contract but has now agreed to increase the payment for the current year by £400,000 taking the total amount for the first year to just over £1.5 million. 

£100,0o0 less than agreed

But payments in the following four years will be £100,000 less than originally agreed ensuring there is no increase in the overall payments. 

A decision report by council deputy chief executive Dave Leech stated: “Whilst the allocation for year one is £400,000 higher than the original profile, the allocations for years two to five are substantially lower than the council’s schedule meaning that there is no net impact on the costs across the life of the contract.” 

Under the agreement, the council’s payments reduce every year over the life of the contract, to £720,248 in year ten. There will be an option for a five-year extension at the end of the contract. 

Mr Leech’s report said the change in payments is to “support with the transition between providers” which has included transferring staff, with their terms and conditions protected, transfer of pensions arrangements and licences for occupation of the buildings. 

The additional money this year will be funded from the council’s general fund for day to day running costs, the balance of which will still be above the agreed minimum level. 

The council’s other centres are the Bowden Active Living Centre, at Ysgol Gwynllyw in Pontypool, Fairwater Leisure Centre at Cwmbran High School and the Pontypool Active Living Centre in Pontypool Park.