THE process to bring Warrington’s leisure, library and lifestyles services back in-house is set to begin, after the council’s Cabinet approved ‘insourcing’ proposals – a move welcomed by LiveWire and opposition Tories.
Opposition Tories described the news as “positive” action, which has also been welcomed with optimism by LiveWire who see the “partnership” safeguarding the future of valuable services and dedicated staff.
The plan to insource – meaning the council will take direct control of LiveWire’s services, facilities and staff – aims to ensure the ongoing delivery of these important well-being services for Warrington’s communities in the future. LiveWire staff have been briefed on these proposals, along with trade union colleagues.
LiveWire, which currently provides these services, has seen a significant loss of customer income and increasing financial pressures in recent years, a trend seen nationally across the leisure and fitness sector. This means it is no longer able to deliver these services on behalf of the council without significant financial subsidy support.
The council has provided a number of support measures to LiveWire since 2020. However, following a subsidy compliance review process with the Competition and Markets Authority (CMA), the council has determined it cannot provide the subsidy as proposed in a referral to the CMA.
The council carried out an options analysis, with external support, prior to the subsidy compliance review process. Completing this process has allowed the council to clearly determine that insourcing services is now the preferred option, noting that a procurement test to the open market will also be carried out to ensure insourcing is the best value approach prior to the insourcing process being completed.
Cllr Russ Bowden, Leader of the Council, said: “We know just how important our leisure, library and lifestyles services are to residents across Warrington, and LiveWire has delivered these services to a consistently high standard for more than a decade. We are proud of the hugely positive impact the organisation has made in our communities.
“However, like the wider leisure sector, LiveWire has been under huge financial pressure due to legacy impacts of COVID, changing customer habits and the sheer cost of keeping services running. This means it cannot continue to deliver these services without significant financial subsidy support. Many areas have seen leisure services cut and swimming pools close in some cases, something we are keen to avoid in Warrington.
“Therefore, it’s vital we take firm action now on an alternative delivery model. Our proposals to insource aim to protect these services, which are so important to our residents, for the future, so they can continue to be delivered to a high standard.
“As part of this process, our next steps will be to test the market to see if there are other operators who may be able to deliver LiveWire’s current services, and at what cost. We know that there are a lot of services LiveWire provides, which may not be able to be delivered by another organisation, but it’s important we carry out a market testing exercise to ensure that our decision to insource remains the best option.
“If we proceed with insourcing, our priority will be to ensure a considered and controlled transition to an in-house delivery model. We know that there will be many questions about the transition, and I would like to provide reassurance that we will be doing everything we can to minimise the impact on staff and customers.
“While we are too early in the process to know with certainty what staffing structures will look like, we are committed to working closely with LiveWire senior management and trade union colleagues, and engaging in a clear, open and honest way with LiveWire employees, throughout this process.”
It is expected insourcing could be implemented by the summer of 2024. Cabinet has approved an interim grant be provided to LiveWire, up until June 2024, while the insourcing process and transition plan is established and delivered.
This will ensure LiveWire can continue to trade lawfully and solvently and effectively deliver the services contractually required of them until the point of transfer.
For more information on the insourcing proposals, please visit warrington.gov.uk/livewire
In a statement highlighting the partnership between LiveWire and Warrington Borough Council, Cheryl Siddall, Interim Chief Operating Office at LiveWire, expressed optimism and emphasised the importance of the collaboration.
She said: “The move, in partnership with Warrington Borough Council, is a positive outcome in a challenging situation. We have navigated through changes in legislation, subsidies, and the impact of COVID-19 and increase of utility bill costs. Joining forces with the Council is the best solution to safeguard the future of our valuable services and our dedicated staff. We are working collaboratively to develop a solution that will truly benefit the local community.”
Recognising the significant impact of physical inactivity on the economy and public health services, Mrs Siddall underlined the value of proactive health and wellbeing intervention services like those provided by LiveWire.
She said: “The cost of physical inactivity places a burden on both the local and national economy, and strains our already stretched NHS and health and social care services.
“Investing in services like LiveWire’s proactive health and wellbeing interventions is essential to prevent lifestyle-related diseases and promote positive mental health in our community. By doing so, we contribute to the long-term sustainability of our public health provision.”
In discussing the financial aspects, Mrs Siddall explained: “Whilst we managed to achieve efficiency savings of over £0.5m when compared to before the COVID-19 pandemic closed our services, we are now facing tripled energy costs amounting to an increase of £1.9m per year. It’s important to note that pursuing further savings would have negatively impacted our services, burdened customers, and compromised our exceptional staff.
“Throughout the contract, we have made efficiency savings and contributed over £22m in cash terms, amounting to over £30m in real terms, towards Council savings over the 11 years up to the end of March 2023 whilst expanding the reach and variety of services for the people of Warrington. We take great pride in our accomplishments, and now is the time to secure the future of these invaluable services for the community.”
Meanwhile, Leader of the opposition Tories Cllr Nigel Balding commented: “I welcome the news that WBC will finally take some positive action to sort out our leisure, library and lifestyles services which have been run by LiveWire CIC since 2012. The council has been told by the CMA that it cannot provide the subsidy it proposed, much as the Conservative Councillors Group pointed out in January.”
“Hopefully WBC will now take seriously its responsibility to test its procurement processes. It must address the long-term inequality in provision of leisure, library and lifestyles services across different geographical areas of the borough. Whilst Labour have opened new facilities in some parts of Warrington, they have also allowed other facilities to be closed, scaled-back or neglected, particularly in the east and south of Warrington.“
Yesterday evening, Cabinet approved plans to bring @YourLiveWire‘s services back in-house. But what does this mean? How long do we expect it to take? How will it affect customers? Our website, which will be regularly updated, provides more information https://t.co/YC1vaR0PMp pic.twitter.com/h0t5FXq5of
— Warrington Borough Council (@WarringtonBC) July 11, 2023
