Information on the financial position that influenced undertaking a review of sport, leisure and cultural facilities.
The financial context which lies behind the future of sport, leisure, cultural and community facilities is critical as Live Borders transforms, but decisions are not being driven purely by financial savings. Community, health and social impact in communities is also being taken into account. Also being considered are opportunities for operational changes which can support reduced costs and targeted one-off investments which can increase annual income.
Across the country, sport and leisure trusts and operators have been facing increasing financial pressures over a number of years. This is driven by various factors, including slow post-pandemic recovery to changing customer usage and spiralling utility and staffing costs. Last month the Accounts Commission report highlighted these points and a key sportscotland report is also expected imminently emphasising the same challenges. It is no different here in the Scottish Borders.
Funding for Live Borders
Over the past six years the funding Live Borders has received from us has ranged from just over £5m in 21/22 to £7.5m in 24/25. The vast majority of this has been an annual budgeted management fee to keep services and facilities running. Since 22/23 that annual fee has remained static at around £4.8m.
The management fee recognises that some degree of public subsidy is required to deliver such a broad range of important local services, some of which, like libraries, do not generate income.
Due to the financial challenges of delivering the current sport, leisure and cultural services and managing a property estate of over 60 facilities, many of them ageing, Live Borders has sought additional one-off funding from us over recent years to just maintain the status quo.
Now an extra £2.2m on top of the £4.8m management fee has been identified to keep a full range of services operating. It is clear, it is not financially viable for us to continue to provide such a level of unbudgeted additional funding. There is no money to do so, without making savings or reducing budgets in other areas.
Constraints on public funding, exacerbated by increasing demand and costs, has forced difficult budget decisions for us over many years, coupled with many competing priorities. This has limited the funding we have been able to provide to Live Borders to address its increasing costs, or invest in facility improvements.
Council Leader, Councillor Euan Jardine
“Until now, rising property and staff costs, reduced income and a lack of transformational change, has contributed to where we now find ourselves with the finance pressures of delivering sport, leisure and cultural services.
“The stark facts are that we have too many properties, many of them ageing and in need of significant investment, and there is too little money to invest in them. They are also not delivering the services and facilities Borderers expect to see.
“The utility costs alone have doubled since 2021/22 and are now £1m higher than they were five years ago. We need fewer facilities, with services maintained but delivered from different properties. That would allow us to target investment into improving facilities, making them better for our communities and being able to deliver more, which the public want. We crucially also need Live Borders to adapt and change, to become more efficient and responsive to customer needs.
“If we don’t fix this now, all that will happen is a managed decline of services, facility failure and further financial pressures. This will have serious implications for our communities and other Council services, as we would need to cut other budget areas.
“We have a chance to do things differently though, to invest one-off funding wisely into a smaller, transformed property estate that will help Live Borders increase usage and generate extra recurring annual income. This extra money will not only address the current financial pressures but support other services and facilities operated by Live Borders across the Borders. Income raised at Teviotdale Leisure Centre in Hawick, for example, could support leisure services delivered in Eyemouth, a culture service in Selkirk or the Borders-wide mobile library service.
“The change and financial savings, we desperately need will not happen overnight, but I believe we now have an ambitious and realistic plan that can deliver for the Borders. This is the start of a new partnership and direction for the Council and Live Borders, providing services and facilities that communities want and need.”