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Medway council approves nearly £25m budget for Splashes leisure centre redevelopment in Rainham

10:52, 17 November 2022

updated: 11:20, 17 November 2022

Plans to spend an additional £5.8m redeveloping a leisure centre were criticised by council members as "financially irresponsible".

Medway councillors were divided over plans to increase the budget of Splashes to nearly £25m. The initial scheme - just to refurbish the centre - was first put forward at £5m, meaning the rebuild is now coming in at five times that cost.

Splashes leisure centre before it was demolished. Picture: Google Street View
Splashes leisure centre before it was demolished. Picture: Google Street View

While the budget increase for the centre at Cozenton Park, Rainham, was approved at last week's full council meeting, the decision was met with criticism from Labour and Tory councillors alike.

This extra budget brings the total expected cost of the project to £23.65m.

Portfolio holder for housing and community services, Cllr Howard Doe, said: "This is a time where one has to seriously consider whether you have the guts to actually carry through what you say you're going to do.

"We tried to get this through quickly because we anticipated rising costs. But there has not just been a rise in costs, there's been an absolute cataclysm of costs."

The deputy leader added the increase in estimated costs was caused by the rising price of materials and fuel, due in part to the war in Ukraine, and a labour shortage.

Cllr Howard Doe, Medway Council’s deputy leader and portfolio holder for housing and community services
Cllr Howard Doe, Medway Council’s deputy leader and portfolio holder for housing and community services
The pool pictured after a refurbishment in 2007
The pool pictured after a refurbishment in 2007

He said: "I think we should carry on now. To give up would be pathetic.

"The cost of withdrawal and reinstatement would mean that we would spend several million pounds.

"If we defer this scheme to a later date as some people have proposed, then all that will happen is the price will simply go up.

"We've got to bear in mind, this is not just a centre for the people of Rainham but actually serves a number of our Medway communities, including Twydall, Hempstead and Watling. Many people come from outside the area as well."

Councillors faced the options of dropping plans for the centre altogether, delaying development until the costs can be assessed, redesigning the centre to fall within the existing allocated budget, and recommending a further addition to the budget to meet the additional costs.

An impression of how the new Splashes Sports Centre at Rainham will look
An impression of how the new Splashes Sports Centre at Rainham will look

The Labour and Co-operative councillors, led by Cllr Vince Maple, proposed an amendment, calling for officers to prepare a detailed report on the options available to find the additional funding, including the ongoing estimated £1.6 million revenue costs to service borrowing, and the addition £500,000 per year running costs.

This was supported by a number of Conservative councillors along with the majority of the opposition, but was shelved after a deadlock vote of 22 to 22.

Cllr Maple said: "Before we take yet another decision to add millions of pounds of pressure to taxpayers of Medway, we need to understand how we are going to manage that."

He raised concerns about "the cost of borrowing", which has now increased to £1.6 million, and "accepting it's not opening, probably until the following financial year", and how the additional costs would be covered.

He added: "It's not a small amount of taxpayer money. This is a big addition to the pressures on adult social care, the pressures that we know we will continue to have to make Ofsted work and we get to a point where we have a service our children deserve.

Councillor Vince Maple. Picture: Peter Still
Councillor Vince Maple. Picture: Peter Still

"I want to see an exciting vibrant regeneration programme, but I want one that cuts its cloth. Taxpayers deserve to know how this is going to be funded because at the time of crisis we need to watch every penny."

Fellow Labour councillor Andy Stamp described the financial sums as "quite staggering". He added: "Finding the ongoing annual revenue costs of £2.1 million is not insurmountable but it could have a significant impact on our resources at a time when the council is facing a huge financial hole in its budget, and which could jeopardise the provision of other core council services for the next 30 years.

"Without this report we are being asked to give the green light for a project without any ongoing funding streams, which in my view would be financially irresponsible and arguably reckless."

Conservative councillor Rupert Turpin also agreed with the amendment. He said: "What cuts to other services are we going to have to make in order to fund Splashes? I'm very supportive of Splashes, I just can't see the policy vacuum, and the budgetary vacuum, that this takes part in.

"If we had a delay of four months we could have a choice of what to spend on Splashes and what to cut on services elsewhere. Some of these are statutory services keeping people alive so it's really important we don't just do it now in a budgetary vacuum.

Cllr Andy Stamp. Picture: Medway Council
Cllr Andy Stamp. Picture: Medway Council
Cllr Rupert Turpin
Cllr Rupert Turpin

"We're in a crisis time at the moment, we've got a budget being prepared nationally. With that information we can set the clear choices of how we're going to fund this."

Rainham North councillor Martin Potter (Con) said: "We have had this proposal now in various forms on the table for a couple of years.

"It has been a frustrating journey, but ultimately we've got to make a decision. If we want to do it and do it properly, then we have to spend the money to do it.

"If we don't commit to it tonight, it will be a more difficult decision down the road. Certain costs may go down, other costs will go up.

"The cost of borrowing money will fluctuate over time."

The initial plans to refurbish the pool, which is owned by the council and opened in 1990, were approved in July 2020 for £5m.

Cllr Martin Potter
Cllr Martin Potter
Splashes leisure centre before it was demolished. Picture: Google Street View
Splashes leisure centre before it was demolished. Picture: Google Street View

But extensive structural surveys found that the building had major structural faults which were deemed beyond economic repair, and it was advised to immediately be taken out of use.

In June 2021, the Cabinet approved the demolition of the building, and the following month the cabinet agreed to instruct officers to begin developing detailed proposals for a new Splashes sports centre in Rainham.

Demolition began in January, and in March, the team submitted a formal planning application, projecting that the project could be delivered with a budget of £17.85 million.

The additional £12.85m in funding was approved by the council in June.

But the completed tenders in August were several million pounds higher than previously projected, and the budget approved in July would no longer be enough to cover the costs and award a contract for the development of the new Splashes.

The remains of Splashes, when it was demolished in January
The remains of Splashes, when it was demolished in January

The risk assessment in the summary report listed affordability as critical, with the very high likelihood the council would not have the financial capacity to fund the project.

The centre also comes with ongoing annual revenue costs, which are estimated at £2.1 million, with £1.6 million servicing the loan and £500,000 in annual subsidy to operate the leisure centre.

The report also states there is a risk of worsening inflation causing even higher estimated costs.

The old Splashes Leisure Centre at Rainham
The old Splashes Leisure Centre at Rainham
Splashes was demolished in January
Splashes was demolished in January

The swimming pool featured a 145ft long flume, wave pool and hosted many different swimming events, lessons and galas.

Plans for the new centre include a training pool for lane swimming and lessons, as well as a fun pool with a flume, a wave ball pool, and a beach area.

The scheme also feature a fitness gym, room for exercise classes, and children's parties, and family and accessible changing rooms.

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