Council seeks clarification on fate of public funds held by leisure trust

Harborough District Council's portfolio holder for finance has called on a leisure trust established by the council to publicly declare how £105,000 of leftover public funds have been spent.

In an update to the council's Cabinet, Cllr Mark Graves said his "patience has run out" after making a series of enquiries with Harborough District Leisure Trust about the fate of the money.

The local authority set the Trust up in 2009 to manage a leisure contract with an external contractor.

The Trust completed its contract in March 2019 and was dissolved in June 2024.

In its final annual return and accounts statement, which covered the 2022/23 financial year, the Trust said it had "not traded in either this year or the previous year".

It added: "The Trust has commenced distributing its surplus funds in line with its aims and objectives and this process continues."

The statement said it made around £80,000 worth of donations to "charities and similar" in 2022.

The Trust has since been dissolved by an instrument of dissolution issued on 20 June 2024, which stated that the Trust then held £23,000 in cash.

Cllr Graves said the £100k sum was built up gradually over a number of years during the initial contract.

He said the funds came from the general public, who paid to gain access to leisure centre facilities in both Market Harborough and Lutterworth, and also the district council, which paid into the Trust on a regular basis as part of the contract.

He added: "The enquiries I have received from residents have ranged from curious interest and simple requests for reassurance, to one that has provided some concerning information.

"I have tried to verify such information through normal council processes over a very long period of time, but the Trust has refused to provide the details of the groups and organisations that have benefitted from their dispersal of the funds (and to what amount), and my patience has run out."

Cllr Graves said the council had written several letters to the Trust seeking this information.

"In the last correspondence, the council said it wished to celebrate the success of any funding grants to local charities, groups or organisations, but this has again gone unanswered," he said.

"I am now calling on the Trust to publicly declare where the Trust money has been spent."

Adam Carey