Salford makes ‘heartbreaking’ decision to pause Pendleton leisure centre plans
Salford City Council said construction costs for the project had risen by £3m and that the projected annual operational deficit had increased more than tenfold – from £86,000 to £1m.
The council credited the escalated projected operational cost to a dampening demand in leisure centre memberships due to the cost of living crisis.
Coupled with the construction cost increases, this made the project “currently unsustainable”, leading the council to put the scheme on “indefinite hold”.
“This is a heartbreaking decision, but we have to face the challenging budgetary situation we face, made worse by the rapidly spiralling economic crisis,” said Salford City Mayor Paul Dennett.
“We must make difficult decisions to balance the budget.”
The proposed Pendleton Community Activity and Health Hub was a key part of the council’s plans to regenerate the area – plans that also include the building of 575 market homes, 173 affordable ones, and an extra care facility.
Pendleton Community Activity and Health Hub was meant to replace the 42-year-old Clarendon Recreation Centre. Last year, the cost had been listed as £16.5m for the scheme. Sports England was already locked in to contribute £2m to the cost.
Contractor Willmott Dixon was lined up to build the facility, which was to be designed by GT3.
As of August, the council had been moving forward with its Pendleton regeneration plans, using compulsory purchase powers to buy the last property in the former High Street estate.
Dennett used the pausing of the Pendleton plans as an example of the current financial struggles local authorities are battling.
“The consequences of not stabilising local government finances up and down the country is resulting in many local authorities urgently reviewing their current capital expenditure and pipeline of development programmes,” he said.
“We are already in a position where we are currently looking at £15.9m of cuts and unfunded budget pressures to legally balance the books.
“We don’t yet know the full extent of the likely core government funding offer for the year ahead which is not expected until the end of the year, this, coupled with interest rates raises, inflationary pressures and uncertainty around continued adequate energy support for gas and electric.”
Dennett continued: “In addition to all of this following the disastrous mini budget the Prime Minister & the Chancellor are now telling us they need to find £60 billion of spending cuts to address the deficit and the debt, or raise taxes, according to the Institute of Fiscal Studies.
“With all this in mind, we simply can’t commit to the project currently.”
