by OUR LOCAL GOVERNMENT EDITOR
The cash-strapped sports and culture trust which provides leisure services for Scottish Borders Council recorded a £1.1 million operating loss for 2023/24 even after receiving an extra million pounds from the local authority to help with increased running costs.
This latest deficit is revealed in accounts filed by Live Borders at Companies House and with the Scottish charities regulator. Income totalling £11.7 million was outstripped by expenditure of £12.8 million.
Live Borders' loss for the last financial year is 36 times greater than the shortfall recorded by the Jedburgh Leisure Facilities Trust [£30,500] which Borders councillors voted out of existence in November by rejecting pleas for further financial assistance.
The Jedburgh trust is now in the hands of liquidators following the closure of the town swimming pool while an assessment of all facilities run by Live Borders (LB) on behalf of the local authority is expected to be complete by March of next year. The outcome may see at least some of the LB portfolio being brought back under direct council control.
A report by the LB trustees which includes a number of councillors says: "Live Borders in line with many other similar charitable leisure and cultural trusts continued to face challenging trading conditions following the pandemic, significantly exacerbated by other external factors outwith its direct control including significant increases in energy costs, general cost of living pressures and changes in customer behaviour.
"It is also dealing with the impacts of managing and maintaining an ageing property estate as required under the terms of its leases".
LB did manage to achieve a growth in sports participation - 1,131,303 participants against a target of 1,112,401. At the same time cultural involvement saw 405,407 participants against the hoped for 424,723. Health referrals totalled 670 against a target of 600.
According to the trust, membership numbers are being affected by increased competition and the lack of investment into the membership product, impacting on retention rates. These income streams are described as 'business critical'.
Jedburgh Castle Jail and the town's Mary Queen of Scots House continued to be among the most visited cultural venues while the Great Tapestry of Scotland, housed in Galashiels, also grew its visitor numbers.
Scottish Borders Council paid the trust a management fee of £5.8 million in 2023/24 including that additional payment of £1 million to meet the rising cost of providing the service, principally increased staffing costs, utility costs and expenditure on building maintenance.
LB had been handed an extra £800,000 in the previous financial year to keep it afloat and has received further bailouts since the end of the last fiscal year in March.
A financial review which forms part of the accounts declares: "Current forecasts on patterns of consumer behaviour, the level of competition for services locally and competition in key markets suggest it will be several years before our customers return to pre-pandemic levels if investment into key facilities and products is not made".
The report warns that consistently one of the biggest risks facing LB is maintaining financial stability and sustainable service delivery in the context of managing its large, ageing property portfolio and ambitious income generation targets alongside reduced levels of local authority funding.
LB is currently responsible for 15 sports facilities including six swimming pools, two sports halls, one outdoor sports complex and bowls hall, six artificial sports pitches, two high school sports centres, one school community campus, six libraries, 11 museums, one visitor attraction, 14 community halls, 10 community centres, one archive hub, office buildings, and a multi-function cinema, theatre and offices with cafe bar. The trust had an average of 395 employees on its payroll, up from 354 during the previous year.
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