LEISURE services in one part of Gwent are on the brink of financial collapse.

The perilous financial position that Aneurin Leisure Trust (ALT) finds itself in will be laid before Blaenau Gwent councillors at a meeting of the county borough’s council’s Partnerships scrutiny committee on Wednesday, October 23.

At that meeting leisure chiefs are expected to present the trust’s performance report for last year which shows they posted a £888,000 deficit for 2023/2024.

ALT had an income of £7.749 million but an expenditure of £8.637 million.

To balance the books, they have ”exhausted” their reserves.

Despite a 15.3 per cent growth in income the trust is forecasting that they will overspend by £375,000 this year

In his report, trust director of operations Phil Sykes said:  “The period 2023/2024 saw ALT face extreme challenges outside of the trusts control.

“Utility costs had risen by an unprecedented 200 per cent as well as inflation starting the year above 10 per cent.

“Cost efficiencies including the temporary closure of a pool were explored and discussed with the strategic board.

“It was agreed that reserves would be utilised throughout the financial year with monthly reviews of the finances to flag any major concerns should reserves be exhausted and additional support be needed.”

Mr Sykes adds that “regardless of the challenges” ALT staff have performed “outstandingly,” and continue to provide an excellent customer experience.

This has helped the trust deliver record breaking income across gym memberships, swimming lessons and catering.

Mr Sykes said: “As a result of utilising reserves to maintain all services through 2023/2024 the trust will require discussions with Blaenau Gwent to establish options for delivering services for the future.

“The trust is confident in how the services are being delivered with increased year on year income of £663,000.

“However, with operational costs increasing by unprecedented levels it is very clear that the current financial package provided to deliver the services leaves an unachievable shortfall.”

Mr Sykes points out that the council’s decision in this year’s budget to freeze the management fee is in reality a cut of £135,000.

Councillors will be asked to either advise which services the trust should “reduce, realign or stop” or look at increasing the management fee “significantly above” what is currently agreed.

The report stresses that there is no proposal to bring leisure services back under the direct control of the council.

Recommendations from the committee will be added to the report which is expected to go to a full council meeting in the near future.

The trust is a not-for-profit organisation established in 2014 which delivers leisure, learning and cultural services across Blaenau Gwent and receives an annual management fee from the council which was £3.171 million last year.

The organisation runs sports centres at Abertillery, Ebbw Vale and Tredegar, as well as Parc Bryn Bach and Bedwellty House.

The council has a 30 year agreement in place which is due for renewal every five years.

The current five year period comes to an end in March 2026.