EAST Hampshire District Council (EHDC) has this week said its finances are in great shape as it broadly outlines its spending on Alton’s new leisure centre.

The council refers to itself as the “UK’s only council to cut council tax” and says its ability to dish out the dough “proves its strategy is working”.

As well as being able to “balance the books for the year”, EHDC is investing £29.5m in new leisure centres across the district.

This includes new facilities in Alton and Bordon, as well refurbishing the Taro Leisure Centre in Petersfield.

EHDC said it is “on a mission to achieve financial independence from central government” and aims to “minimise what it charges its residents for council tax”.

The council, which is taking “a pioneering approach to dwindling grants”, has invested £1.7m to earn income from commercial property already this year and continues to look for “suitable investment opportunities”.

In addition, EHDC has launched a range of “profitable businesses” selling services to other local authorities, including its litter enforcement officer scheme. In 2017-18 these new income streams will enable the council to come “very close” to achieving “full independence without cuts to frontline service”.

This means EHDC is on track for independence from central government grants when they are expected to stop in 2019-20.

As interest rates remain low, those pulling the strings at EHDC have looked into other methods to keep services running smoothly – not least the millions it is investing in leisure facilities.

And the council said it wasn’t shying away from its community commitments, having also set aside more than £100,000 to continue its popular grant scheme which local organisations can apply for.

Ferris Cowper, deputy leader of East Hampshire District Council, has “pioneered” the council’s strategy.

“Our financial planning and detailed strategy has enabled us to cut council tax, invest £29.5m over three years in new leisure centres, and still balance the books,” he said.

“We have looked at how councils are traditionally funded and taken a completely different approach to suit today’s challenges.

“I am extremely proud that we are the only council in the country to cut council tax and I am enormously grateful for all the hard work and dedication my colleagues have shown to enable us to do this.

“I can’t wait to find more innovative ways to ensure that we can achieve financial independence from central government and I hope that councils across the country follow our lead.”

An EHDC spokesman explained how the funding will be handled.

“The initial capital investment will come from East Hampshire District Council and, through income generated by successful, financially viable centres, Everyone Active will repay that investment with interest over the lifetime of the contract,” the spokesman said.

“Surplus will be re-invested in council services and used to help keep council tax low.”

In April, EHDC announced it had selected Sport and Leisure Management Ltd (SLM) as the ‘preferred bidder’ to manage its leisure facilities.

The council and SLM, which operates as Everyone Active, will work in tandem to oversee the development of the new centres.

The company, which formed in 1987, is the UK’s longest-established leisure operator. It works in partnership with 44 local authorities to deliver “high-quality sports and leisure facilities and improve the health and wellbeing of communities”.