COUNCIL chiefs have denied Hyndburn’s leisure facilities are facing a crisis after the borough’s leisure trust racked up a £400,000 deficit in one year.

Leisure providers across the country are staring at a bleak climate of falling gym membership due to the recession, and overheads increasing with rising utility costs and the introduction of free swimming for under-16s from April this year.

Leisure in Hyndburn Charitable Trust posted its annual returns for 2007-8 with the Charity Commission last week, revealing that the Trust’s £3.1M spending outstripped its £2.7M income.

The £395,000 loss is more than double that for 2006-7, although leisure bosses say much of this is pension fund deficit rather than a “cash” figure.

The Leisure Trust, which employs some 200 full-time and part-time employees, has been identified as one of Hyndburn Council’s two biggest cost pressures, with overspending of £90,000 forecast for the current financial year.

Set up in 2001, the Trust gave notice to quit back in August 2007 due to its financial problems, but was later reinstated by the council.

Neighbouring Rossendale Leisure Trust has come under fire after requesting a 40 per cent council grant hike following a similar deficit forecast and voicing plans to sell off one of its swimming pools.

In Hyndburn, it is understood that combining Mercer Hall Leisure Centre with a new health centre in Great Harwood has been raised as a possible long-term option.

But Hyndburn Council’s deputy managing director Steve Tanti played down comparisons with Rossendale, pointing out that Leisure in

Hyndburn operates services such as Oswaldtwistle Civic Theatre, tourist information and sports and arts development projects as well as its three leisure centres.

He said: “There’s absolutely no suggestion of any cutbacks in leisure facilities in Hyndburn and we expect the level of grant awarded to the Trust next year will be at the same level as this year.”

That would see Leisure’s in Hyndbun’s revenue grant frozen at £1.06M, while the council’s 2009-10 capital programme sets out a 50 per cent increase in total spending on leisure, recreation and open spaces to £3.6M.

Independent councillor Nick Collingridge believes the Trust’s remit is too wide and it should be working harder to secure outside funding to ease the strain on the taxpayer.

He said: “We need dynamic young people who are used to working in leisure. It’s cost over £1M this financial year. We’re supposed to be in a recession and these are things which are a drain on resources.”

Trust chief executive Peter Baron admitted there had been a “shortfall” on private capital income, but said this was being addressed by wholesale board changes – including a new business director role and the long-awaited appointment of a finance manager.

He said: “Hyndburn Sports Centre is 35 years old, it looks a bit outdated and needs investment, but we realise the council hasn’t got a bottomless pot of money. It would be folly for the council or the Trust to throw good money after bad.”

Hyndburn Council Cabinet member for leisure, Councillor Lynn Wilson, said: “We have now got board members who are much more business savvy.

“We are optimistic that this will be sufficient to make some major changes. There’s no doubt that some of these facilities need money spent on them.”