Deed of Variation of Leisure Management Services – Agency Model

Description

Westminster City Council intends to vary its existing contract with Sports and Leisure Management Ltd (trading as Everyone Active) to implement an agency model for the delivery of leisure management services and appoint Sports and Leisure Management Ltd (trading as Everyone Active) as the Council’s agent in delivering the leisure services at the Council’s leisure facilities. Under the revised arrangement, Everyone Active will act as agent and the Council as principal. The services, facilities, and scope of provision remain unchanged. The purpose is to achieve VAT efficiency and consequently deliver improved financial returns. Everyone Active will guarantee an additional financial surplus to the Council each year. 
The original leisure management services contract was originally procured under the Public Contracts Regulations 2006 and commenced on 1 July 2016. The opportunity to change the status has arisen during the course of the contract, while exercising allowable optional extensions under the Contract, following the successful litigation taken by Chelmsford City Council in 2022 and subsequent revised HMRC guidance in 2023 in relation to the VAT treatment of leisure services provided by local authorities.