Plans to deliver Peterborough’s new Sports Quarter leisure development have taken a major step forward with the Department for Business, Innovation, Science and Trade ( BIST) confirming that a £20m contribution towards the cost of a new pool has been fully approved.
The announcement came on the same day that Cabinet members met to formally accept the £20m Government grant towards the cost of a new eight-lane, 25-metre swimming pool.
The Government announced last year that the funding had been offered in principle, subject to the approval of a full business case and the council has now received final confirmation from the BIST.
Cabinet also approved entering into Development Management Agreements with Alliance Leisure Services (ALS) Limited to progress early works and main construction for the new facility, so that it can remain on track to open in the autumn of 2028. ALS has a strong history of delivering new leisure centres for local authorities.
This latest update follows the submission of a planning application in July for the new leisure development which will form part of a sports quarter for the city. Plans also include a 20m activity pool, cafe, family play, health and wellbeing rooms, a 150-station fitness suite and two studios, plus a spin studio.
Councillor Zameer Ali, Cabinet Member for Communities and Public Safety, said: “The confirmation from Government of this funding is so important as it brings this much-needed facility another step closer for our city. I want to thank our officers for their tireless work on this project and the BIST for approving this grant, demonstrating our government’s commitment to developing community-enhancing facilities such as this.
“As previously stated, our residents deserve to have access to high-quality swimming facilities, and this new leisure centre will give them a modern, accessible place to swim, exercise and enjoy activities with family and friends, while supporting our key goal of better health and wellbeing across the city. We are hoping to begin site clearance in November, ready for main construction to start early in the new year.”
Minister for Small Business and Enterprise Lord Leong said: “Thanks to £20 million from the Growth Mission Fund, Peterborough will get a brand-new leisure centre that will help more people of all ages dive into swimming, stay active, learn new skills and connect with their community.
"This is about creating places that communities can be proud of, improving health and wellbeing, and making Peterborough an even better place to live.”
Cabinet members also approved additional budget for the development, with expected costs exceeding the £37.1m initial budget envelope agreed by Full Council in February 2026. This budget was based on initial early designs and planning. As is usual for developments of this scale, more detailed planning has led to a clearer analysis of likely costs and associated risks. Cabinet members will be asked to agree a new development budget in the region of £43m. This cost is inclusive of a 7% contingency built in for unforeseen costs and issues.
The increase is largely because of highways related works outside the development area which are required, plus higher costs for steel, timber, mechanical and electrical equipment and insulation because of the ongoing conflicts in Ukraine and Iran.
Cabinet members were advised that every effort will be made to manage risks and keep final build costs as low as possible.
The council has committed to funding the remainder of the project, outside of the £20m Government grant, and continues to seek private sector funding or grants to assist with the costs.
For more information about the leisure development visit www.peterborough-leisure.co.uk