Manchester council is set to save nearly £1m by bringing a company responsible for sport and leisure in the city back in-house. The council agreed to set up the arms-length company known as Manchester Active Ltd in 2018 for the 'delivery of sport and leisure services' in Manchester, including developing programmes to get more people active.
Expected Savings and Reinvestment
Bringing the service back in-house is expected to save around £890,000 over a five-year period, according to a council report. This money will be reinvested into supporting community sports projects in Manchester. The change is not expected to impact council leisure centres, which are run under contracts with three separate operators.
Accountability and Value for Money
A council report stated that bringing Manchester Active back in-house would lead to 'clearer accountability' as well as 'enhanced value for money.' The council agreed to an early termination of the current contract with Manchester Active on January 31, 2027, and to start insourcing all the functions and services being provided by the firm. Manchester Active staff will see their employer change to the council under TUPE regulations.
Scepticism from Opposition
Councillor John Leech, leader of the Lib Dem group at Manchester council, was sceptical about whether the change would save any money at all. He said: 'I’m not confident it will actually make the savings that is expected, because I think whenever there’s a change it doesn’t seem to save any money, but I don’t disagree with the decision.'
Labour's Perspective
Labour Councillor Shazia Butt, who leads on leisure matters at the council, said: 'Manchester Active was established at that time to tackle inactivity, improve mental health and physical wellbeing, and prevent ill health, which it has been doing, it’s done a great job in the last seven years. The times have changed and we have to look forward as to how we can make things better.' A council officer said Manchester Active wasn't set up to save money, but to 'create the opportunity to generate further investment, and it’s delivered that in abundance.'
