Somerset Council denies Glastonbury town deal cash went to failed leisure firm
By Laura Linham 11th May 2026
Somerset Council says no Glastonbury town deal money was paid directly to Fusion Lifestyle before the leisure operator entered administration.
Fresh questions have been raised over Glastonbury's revamped leisure centre after the company running the site collapsed into administration.
Fusion Lifestyle, which operated leisure centres in Glastonbury, Wells, Street, Shepton Mallet and Frome, entered administration on April 1 after what it described as "significant financial difficulties" following the coronavirus pandemic.
The charity-run operator was managing Tor Sports and Leisure Centre on Oriel Drive when the site underwent a major refurbishment backed by millions of pounds from the Glastonbury town deal.
But Somerset Council has now stressed that none of the £2.23m government funding linked to the project was paid directly to Fusion Lifestyle.
The issue was raised during a meeting of Somerset Council's executive committee in Taunton on Wednesday, May 6.
Councillor Dawn Denton questioned what checks had been carried out on Fusion Lifestyle's finances before work on the leisure centre project was approved.
She also asked whether the council could recover any money following the company's collapse.
Councillor Denton said: "Somerset Council agreed to allocate Glastonbury town deal funding to Fusion Lifestyle for refurbishment works at the Tor Sports and Leisure Centre.
"According to Companies House, Fusion Lifestyle has been showing signs of financial instability for a while.
"What due diligence was undertaken regarding Fusion's financial position prior to approving and releasing these funds?"
Deputy leader Liz Leyshon said the funding had not gone to Fusion Lifestyle.
Ms Leyshon said: "The town deal project known as the Glastonbury community sports and leisure hub was funded by central government, as part of the £23.6m town investment plan.
"None of the £2.23m funding for this project was paid to Fusion Lifestyle.
"The lease was taken back by Somerset Council, as owner of the freehold, while the facility was closed for refurbishment.
"When the refurbishment project was complete and ready for fit-out, the lease was reinstated.
"Fusion Lifestyle took responsibility for the fit-out, including the gym equipment, furniture and lockers.
"At no point was any town deal funding paid to Fusion Lifestyle for this project."
The council said Fusion Lifestyle contributed around £300,000 in match funding towards fitting out the upgraded building after the main construction work had been completed.
Tor Leisure reopened in February 2025 following the refurbishment.
Fusion Lifestyle's collapse left uncertainty hanging over the future of five Somerset leisure centres.
Somerset Council has since stepped in with £370,000 of emergency funding to keep the sites running for another three months while a replacement operator is found.
Everyone Active and Freedom Leisure are both understood to be interested in taking over the contract.
A new operator is expected to be appointed in early July.
The temporary arrangement is expected to focus on keeping the centres open rather than carrying out any major upgrades.
Original reporting: Daniel Mumby/LDRS
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