SBC set to agree £1m bail-out of Live Borders

Scottish Borders Council is expected agree to a £1m bail-out for a cash-strapped charity.

When members of full council meet on today (Thursday, December 14), they will be recommended to endorse the funding to Live Borders – the operator of the local authority’s cultural and leisure services.

The money is to be taken from the council’s reserve funds, with members to be informed that “without this financial support the Trust will not be able to meet its projected financial liabilities in the current year”.

A report to members reveals that in a bid to balance Live Borders books the “potential closure of some facilities” was one of the options on the table.

Additionally, it is anticipated that further financial support will be needed next year to keep the charity afloat.

The report, from Suzy Douglas, SBC’s director of Finance & Procurement, says: “The council has been in detailed discussions with Live Borders regarding their financial position in the current year.

“The Trust is experiencing significant financial difficulties as it adjusts its service delivery model in a post-Covid operating environment, deals with a backlog of maintenance, the effects of inflation and the ongoing impact of energy price rises in recent years which have significantly impacted the cost of operating sports facilities, notably swimming pools.”

At the council meeting last month, members agreed the independent consultants’ report on the joint strategic review of sport, leisure and cultural services and agreed a series of reforms.

Recommendations included Live Borders relinquishing the operation of leisure centres to SBC.

The report adds: “In implementing the recommendations from the strategic review there will be the requirement for a detailed prioritisation of spend, cost reductions, additional income generation and the potential closure of some facilities in order to keep the Trust financially viable.

“The financial implications in the joint strategic review report noted that there were expected to be significant financial implications resulting from both the implementation of the recommendations contained within the report and the short to medium term financial support required by Live Borders to ensure they remain a going concern.

“Live Borders has now finalised financial forecasts for the current year, including a detailed cash flow projection to the 31st March 2024. This information received after the council meeting on the 23rd November confirms, based on the current run rate of expenditure and forecast income, that by the 31st March 2024 the Trust is forecast to require up to £1.5m of additional funding to meet their projected liabilities.

“Live Borders is pro-actively taking a number of management actions to minimise this pressure as far as possible.

“As well as addressing financial challenges during the remainder of this financial year, significant emphasis is being placed on assessing the likely financial implications in 2024/25 as part of the ongoing financial planning process.

“It is now considered that the additional support recommended for 2023/24 will have to be followed up with an additional package of support as part of the budget process for 2024/25 and future years.”