A debt-troubled Derbyshire council which is continuing to run a costly leisure centre at a huge loss has shared its on-going efforts to overcome severe financial problems with what it regards as a ‘realistic’ draft budget plan for the forthcoming financial year.
Elmton-with-Creswell Parish Council was left in financial dire straits, according to a Locum report, largely due to its running of the Creswell Heritage and Wellbeing Centre which was identified as a key element in the council’s financial plight according to a National Association of Local Councils’ independent review.
The NALC review in March found the council was liable for a £2m loan taken out from the Government Public Works Loans Board for construction of the £3m centre project alongside a £533,000 loan from Bolsover District Council and the council was forced to increase its council tax precept for the 2024-25 financial year by 93.2per cent and by 65.58per for 2025-26.
However, the parish council has completed a number of NALC recommendations while others are on-going as part of its attempted recovery and following a packed meeting at Creswell Events Centre on November 27 it shared the full extent of its difficult position while outlining plans for a draft budget for 2026-27 to hopefully keep reducing its losses year-on-year.
Parish council Chairperson Amanda Davis told councillors and staff at the meeting: “We have a budget that is realistic and based on facts and our best estimates, so thank you so much because I know personally and professionally we have all put a lot into this.”
The council has reportedly been running the centre, on Colliery Road, at a loss after it agreed in October, 2020, to borrow £2m from the PWLB to complete the leisure centre project and Bolsover District Council’s former company Dragonfly had to finish the development after the original contractors fell into administration.
NALC’s report stated the loss on the running costs of the centre in March was estimated to be costing the parish council £10,400 per week including the PWLB and district council loans.
Shaun Wass, who owns properties in Creswell, claims the council is losing an estimated £,8,500 a week, that the first and second quarters of the financial year showed estimated losses of over £140,000 alongside £90,000 of loans being paid back towards the long-term PWLB loan and towards the ten-year Bolsover District Council loan.
The council’s financial officer James Palmer confirmed at the meeting that a six-month analysis has been circulated including income and expenditure and that everyone knows the leisure centre is running at a deficit of £143,297.
Elmton with Creswell Parish has also confirmed that loan payments continue to be paid in line with both agreements and associated payment schedules.
But Cllr Davis said that following work with the leisure centre working group and Bolsover District Council, a Service Level Agreement just needs to be signed-off by the district council which has agreed to continue managing the centre on behalf of the parish council with costs being met by the parish council.
Cllr Davis added: “The [leisure centre] working group have a lot of ideas for generating income so that will increase so they just need permission to go ahead so the sooner we can get that signed the better.”
The council says it aims to come to a view on the preferred options for the future of the Heritage Wellbeing Centre to generate additional income and it will publish a way forward with milestones once the SLA has been signed.
Since the NALC review in March, it has implemented a number of NALC’s recommendations including compiling an action plan, appointing a new clerk, a new finance officer, a new Events Centre Manager, setting up a new HR Committee and a Finance Committee.
It has also agreed that the Derbyshire Association of Local Councils will undertake the council’s audit, and that a Charitable Trust previously set up to run the centre be dissolved, and it has been discussing with the district council possible improvements concerning the leisure centre.
The council is continuing to review its various buildings, assets and staff costs which are also posing a drain on its finances and it has signed up to the national Civility and Respect Pledge and begun a training programme for councillors as well as making a commitment to peer reviewed accreditation to demonstrate good governance.
It has also been ensuring future agendas are published with supporting reports and minutes to provide a full picture of what councillors are being asked to decide and why.
The council has been considering whether a new permanent management structure should be implemented at the leisure centre or if the building should be relinquished or have its operations transferred to another party.
However, Mr Palmer explained if the leisure centre was sold it would only make ‘hundreds of thousands, not millions’ of pounds and it is on a site that is leased by Welbeck Estates and they have indicated they do not wish the facility to be closed and if it was sold they would regard that as a breach of contract that could leave the parish council liable at a great cost.
The council has also confirmed that loan payments continue to be paid in line with both agreements and associated payment schedules.
A council spokesperson stated: “The council continues to progress the actions from the NALC report alongside delivering a range of activities in the community.
“It has also put in place a Priorities Reporting System, implemented a wide-reaching policy review and has drafted a budget for Financial Year 2026-27.”
The spokesperson added: “The council continues to fulfil all its financial liabilities whilst maintaining its permanent administrative headcount of just 40 hours per week.
“Although the council recognises the heightened public interest in its operations, dealing with extensive enquiries does bring additional administrative pressures that otherwise would be delivering outcomes for the community.”
Mr Palmer explained that if the council can get up-to-date figures it can work towards repeatedly reducing its arrears so they get ‘lower and lower’ but he conceded that he does not think the leisure centre is ever going to make a profit but the aim is to make its operation ‘realistic’.
He estimated that the council will need a precept of £914,034 to be raised through council tax for the 2026-27 financial year to meet its financial obligations which he says is lower than last year’s which fell at £919,471.48.
Mr Palmer told the packed public meeting: “These are our priorities and we are working on these and we cannot wave a magic wand and we can only work with the tools we have got and we want to get this information out to you but we want to make sure it’s correct because it changes.”
