---
title: "Deed of Variation of Leisure Management Services - Agency Model"
ocid: "ocds-h6vhtk-05aa25"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-05aa25"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-05aa25.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-05aa25.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "WESTMINSTER CITY COUNCIL"
published: "2025-10-08"
---

# Deed of Variation of Leisure Management Services - Agency Model

Buyer: WESTMINSTER CITY COUNCIL  
Current stage: Award  
OCID: ocds-h6vhtk-05aa25

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## Summary

Westminster City Council has concluded an award stage for the variation of its existing contract with Sports and Leisure Management Ltd, trading as Everyone Active, to implement an agency model for the management and operation of its leisure services. The initial contract, which began on 1 July 2016, has been revised to extend its term and adopt an agency model that aims for VAT efficiency and improved financial returns for the Council. This strategic modification, set within the category of 'Sports facilities operation services', involves facilities located in the UK region code UKI32. The Council signed the deed of variation on 8 October 2025, transitioning the contract term under new conditions stipulated by PCR2015 Regulation 72, without a fresh procurement procedure due to its lawful execution.

This tender creates a significant opportunity for businesses specialising in leisure management and service provision, particularly those with expertise in agency models and VAT-efficient operations. The contract, valued at £146.48 million, provides a stable, long-term engagement, making it attractive for large enterprises capable of managing extensive leisure facilities and services. Companies operating within the sports and leisure sector, with a focus on operational efficiencies and financial sustainability, stand to benefit from the structure and duration of this agreement. Businesses that can leverage agency relationships to optimise financial outcomes will find this an opportune project to expand their portfolio and achieve scalable growth in partnership with a prominent regional authority like Westminster City Council.

## Notice

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.

### Lot Information

Lot 1

Westminster City Council intends to enter into a deed of variation modifying its contract with Sports and Leisure Management Ltd (trading as Everyone Active) for leisure management services which commenced on 1 July 2016 to appoint Everyone Active as the Council's agent in delivering the leisure services at the Council's leisure centre facilities.

### Procurement Information

This notice relates to the modification of an existing contract, not the award of a new contract. While the contract was sourced under PCR2006, the Authority considers the modification must be carried out pursuant to PCR2015 Regulation 72. A procurement procedure is not necessary given the award of the Deed of Variation is permitted pursuant to PCR2015 Regulation 72. The modification may lawfully be agreed between the parties and implemented without the need to conduct a fresh procurement procedure. The contract is for the operation and management of the Authority's leisure centres to ensure the Authority can provide quality and affordable leisure services for residents of Westminster, maintain facilities and make financial returns to invest in core services. The contract will be modified to adopt an agency model. Under the current contract, SLM acts as Principal in the supply of leisure facilities to the public. Under the new agency model, SLM would make supplies to the public as an Agent of the Authority. It is the Authority providing leisure services to the public through its Agent. The proposed modification is not 'substantial' within the meaning set out in Regulations 72(1)(e) and 72(8) PCR2015. * The character of the original contract and services will remain substantially the same and is not rendered materially different from the original. * The modification concerns the same type, scope and nature of services at the same facilities to residents. The contract already provided operation of the leisure facilities, the modification establishes an agency model so SLM provides the Authority's statutory leisure services to the public on its behalf and other ancillary modifications. This generates VAT savings. The underlying contract is for a range of leisure centre operation, management and related services by SLM for the Authority. The original contract will be modified to an agency model. Under the current structure, SLM acts as Principal in the supply of public leisure facilities so that the Authority is not making the supplies of leisure services. Under the new agency model, SLM would make supplies as an Agent of the Authority. The Authority is satisfied that the modification does not introduce conditions which would have allowed for (a) the admission of other candidates, (b) the acceptance of another tender or (c) additional participants in the procurement procedure - delivering the Council's statutory leisure services as agent rather than outsourced contractor will not affect the physical operation of the leisure centres and the change to an agency model for VAT purposes does not change the service requirement or how those services are provided. It is unlikely to have changed the outcome of the procurement. The modification does not change the economic balance in favour of SLM in a manner which was not provided for in the contract. The Authority is satisfied that the agency model and VAT arrangement does not impact SLM's operating costs under the original contract. The agency model allows for a more certain financial position to the Authority and a greater surplus share than previously anticipated.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/063117-2025 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Limited |
| Procurement method details | Award procedure without prior publication of a call for competition |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 8 Oct 2025 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 7 Oct 2025 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | £146,480,000 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | WESTMINSTER CITY COUNCIL |
| Locality | LONDON |
| Post town | South West London |
| Postcode | SW1E 6QP |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI3 Inner London - West |
| ITL 3 | TLI35 Westminster and City of London |
| Local authority | Westminster |
| Electoral ward | St James's |
| Westminster constituency | Cities of London and Westminster |
| Delivery location | TLI32 Westminster |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | SPORTS AND LEISURE MANAGEMENT LIMITED (EVERYONE ACTIVE |

## CPV Codes

### Divisions

- 92 - Recreational, cultural and sporting services

### Codes

- 92610000 - Sports facilities operation services

## Release History

- 8 Oct 2025 at 08:28 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/063117-2025

## Notice URLs

- http://www.westminster.gov.uk

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-05aa25. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-05aa25.json.