Newham Council's Overview and Scrutiny Committee has raised concerns regarding the £2.1 million capital fit-out costs for the Manor Park Gym, a project approved by the Cabinet on 16 September 2025. The committee met on Tuesday, 7 October 2025, to discuss a call-in of the Cabinet decision, focusing on the financial implications and the rationale behind the investment.

The new gym is a reprovision of the offer previously available for local residents on the site prior to a regeneration of the area, specifically the Greenhill development, which led to the original gym's closure. The handover of the gym as a shell and core is scheduled for late October 2025, with the new gym expected to open in February 2026, subject to the handover date and commissioning of works.

The Cabinet's decision, documented in the Decisions 16092025 1030 Cabinet document, greenlit the release of £2.1 million for the gym's fit-out, with Greenwich Leisure Ltd (GLL) managing the program within the allocated budget. This decision was made after considering alternatives. These included not proceeding with the fit-out, which would leave a vacant space in the north east of the borough, and requesting GLL to reduce the gym's specification. The latter was rejected because it might have an impact on revenue income at Manor Park Gym. The consequence would then be the management fee would increase to reflect the loss of revenue. Furthermore, under the terms of the Agreement the Council would need to compensate GLL for the loss of predicted profit.

The Manor Park Gym Capital Investment Cabinet Report states that the gym is expected to be handed over to leisure services as a shell and core in late October 2025.

The report also highlights the gym's importance to GLL's financial model, supporting the reduction in the council's management fee contribution. The provision of Manor Park Gym is an integral component of GLL's overall financial model, and supports the year on year reduction in the council's management fee contribution. GLL's tender submission included an indicative profit and loss projection for the Manor Park Gym, which identified a small surplus over the term of the contract. The investment can be considered spend to save, as the projected increases in activity enable the contractor to operate sustainably and eliminate the need the need for Council financial support by year 5. It also acknowledges that the council's current standing in relation to the Best Value Notice has been acknowledged and taken into account throughout the process. The capital investment in the gym strategically enables the activation of an additional site, generating new income that contributes to a sustained reduction in the management fee over the 10-year contract term.

The Overview and Scrutiny Committee, chaired by Councillor Lester Hudson, also resolved to exclude the public and press from a portion of the meeting due to the likely disclosure of exempt information as described in Part I of Schedule 12A to the Local Government Act 1972, related to exempt documentation regarding the Manor Park Gym – Capital Investment. The Manor Park Gym Capital Investment Cabinet Report also notes that Appendix 1 contains Information relating to the financial or business affairs of any particular person (including the authority holding that information).

The Agenda frontsheet 07th-Oct-2025 19.30 Overview and Scrutiny Committee lists the attendees, including Councillor Liz Cronin, Councillor Joshua Garfield (Scrutiny Commission Chair), Councillor Carleene Lee-Phakoe, Councillor Susan Masters (Scrutiny Commission Chair), Councillor Mehmood Mirza (Leader of Newham Independents Group), Councillor Terence Paul, Councillor Rohima Rahman, Councillor Lakmini Shah (Scrutiny Commission Chair), Ellen Kemp, Paul Leslie, Conrad Hall, Kirk Dede, and Artemis Kassi.

The next meeting is scheduled for Thursday, 23 October 2025.