Peterborough leisure and libraries charity Vivacity shut by lockdown

A "perfect financial storm" caused by the lockdown has led a leisure charity to hand back its council contract, its chair of trustees has said.

Vivacity has been running 10 libraries, a theatre, swimming pools, gyms and a museum in Peterborough since 2010.

All services ceased with the lockdown, with a loss of £8m a year, and 98% of its 500 staff were furloughed.

Peterborough City Council leader John Holdich said it was committed to continuing the services.

Vivacity's chair of trustees Stewart Francis said the decision to hand back services to the council was "extremely difficult and painful" and "a direct result of the financial impact of Covid-19".

The trust, which also runs arts and cultural festivals, said its main funding comes from gym and swimming sales, theatre ticket sales and its management fee.

It is predicting a loss of income of £8m this year - last year its income was £10.8m - because of social distancing and reduce capacities.

Mr Holditch said: "We are sad that our 10-year relationship with Vivacity is to end, just one more casualty of the global pandemic.

"But we are committed to continuing and even building upon the excellent services it has provided for the city."

Mr Francis confirmed the trust is not insolvent and has sufficient financial reserves to manage the transfer of the contract to the council and to honour all outstanding financial commitments.

The transfer will take place within the next 90 days.

Find BBC News: East of England on Facebook, Instagram and Twitter. If you have a story suggestion email [email protected]