Islington Council has halted the Finsbury Leisure Centre redevelopment project, citing escalating costs and a reassessment of local needs. The decision, made by the Executive on 24 April 2025, was formally noted at the Council meeting on 10 July 2025.

The original plans for the Finsbury Leisure Centre redevelopment project included delivering 200 homes, new leisure and medical facilities, and improved public spaces. The approved budget for the project was £157.668m, with £40.210m from the General Fund and £117.458m from the Housing Revenue Account (HRA).

The Executive approved the cessation of the current project to redevelop the Finsbury Leisure Centre site and the withdrawal of the associated planning application. The decision was considered urgent due to the project incurring costs of around £363,000 per month, according to the Monitoring Report.

Several factors contributed to the escalating costs, including:

  • Inflationary Pressures: Rising costs for materials, labor, and energy.
  • Interest Rate Volatility: High and increasing interest rates affecting financing costs.
  • Supply Chain Disruptions and Tariffs: Delays in material delivery and higher costs due to tariffs.
  • Economic Uncertainty: Potential economic downturns and shifts in consumer confidence.

The council also noted the outline proposals to continue investing in Finsbury Leisure Centre and its surroundings and to support delivery of a new medical centre. These proposals include modernising Finsbury Leisure Centre and improving the surrounding open spaces, working with partners to make the leisure facilities inclusive and affordable, assessing the feasibility of a neighbourhood care & health hub at the Toffee Park site to provide a new home for the City Road Medical Practice, and retaining the original Bunhill energy centre to continue delivering low carbon heat.

The need for a new medical centre is tied to these outline proposals, with the council planning to support its delivery by assessing the feasibility of a neighbourhood care & health hub at the Toffee Park site.

The decision was made using general exception procedures in accordance with paragraph 68 in Part 4 of the Constitution, as detailed in the Monitoring Report. This was deemed necessary because the project was incurring significant monthly costs, and a swift decision was needed to terminate related commercial agreements and minimize further expenses. Call-in provisions were also waived because it would not be possible for members calling in the decision to give it proper consideration before the next Corporate Resources and Economy Scrutiny Committee meeting, and the time delay in arranging a subsequent extraordinary meeting would further increase costs to the Council.

The direct impact of ceasing the project would be to not deliver the associated benefits of the current scheme. However, the report proposes an alternative scheme for the local area to ensure some of the benefits associated with the current scheme are retained. These alternative proposals will be brought forward to the Executive when finalized.

The General Fund element of the savings is factored into the £59m budget gap over the Medium Term Financial Strategy; its release from commitment presents a positive opportunity to the financial sustainability of the General Fund, should the Council make this decision as opposed to retaining some or all of the borrowing and investing elsewhere.