Agenda item

To receive a report from the Head of Revenues, Benefits & Leisure presenting proposals to change the Leisure fees and charges from 1^st April 2026.

The Group had before it, and NOTED, a report * from the Head of Revenues, benefits & leisure providing proposals to change the leisure fees and charges from 1^st April 2026.

The following was highlighted within the report:

·       Active Mid Devon was committed to delivering a pricing strategy for 2026/27 that balanced affordability, inclusivity, and financial sustainability. Following an independent review by leisure consultants the proposed approach reflected market conditions, competitive pressures and the need to maintain strong community engagement during a challenging economic climate.

·       The recommendation was to freeze membership fees for all adult and junior categories throughout the forthcoming year. This decision prioritised member retention and affordability, ensuring that the offer remained competitive against local operators while supporting the community during the ongoing cost-of-living challenges. By freezing membership prices, the service aimed to strengthen loyalty and reduce attrition, which had been identified as a key driver of long-term success.

·       To offset inflationary pressures and maintain financial resilience, pay-as-you-go tariffs were proposed to increase by 3% from April 2026, this was below Consumer Prices Index at 3.8%. This adjustment was modest and had been informed by sector benchmarks, generating an estimated £6,500 in additional income without discouraging casual participation. Concessionary discounts would remain in place, including 25% off memberships and 20% off pay-as-you-go sessions, ensuring continued access for priority groups and those on lower incomes. 

·       There was an amendment to the report as the percentages had been shown the wrong way around on page 4 section 3.5 where it was stated 20% off memberships and 25% off pay as you go sessions.  This has been amended to state 25% off memberships and 20% off pay as you go sessions.

·       Care leavers continued to enjoy a free membership up to the age of 25 as would unpaid carers, with free memberships for those under-18 and discounted rates for adults. These measures reflected the services’ corporate parenting responsibilities and commitment to inclusivity. Commercial hire arrangements for schools, clubs, and organisations would also be reviewed periodically to optimise revenue opportunities while maintaining fairness and competitiveness.

·       Growth would be driven by improving retention rather than increasing membership prices. The target was to increase total membership by 5% and extend the average length of stay with internal Key Performance Indicator’s.

·       Financially, this strategy aligned with the Council’s corporate objectives to promote health and wellbeing while ensuring commercial sustainability.

·       In summary, the pricing strategy represented a balanced approach that safeguarded affordability, supports inclusivity, and positions Active Mid Devon for sustainable growth in 2026 and beyond.

Discussion took place regarding:

·       The forecasted increased operational costs due to employer National Insurance contributions and premises costs. The increase was estimated to be in the region of £700k.

·       Additional income could be generated by improving member retention by as little as one month extra.

·       The need for a full and positive publicity campaign should Cabinet agree to freezing fees for Active Mid Devon members in 2026/2027.

It was AGREED that the recommendations within the report be referred directly to the Cabinet for decision. The Policy Development Group were broadly in support of these but were also mindful of the £700k cost pressure on the Leisure Service budget. The PDG therefore agreed to NOTE the report only.

Note: * Report previously circulated.