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A new leisure and wellbeing hub in Caerphilly could cost a further £2.5 million to build, councillors have learned.

But cabinet members heard claims the new build would still prove to be better value than patching up the town’s existing leisure centre – and could eventually prove to be a lucrative source of revenue.

The new centre, currently in the early stages of construction near Van Road, is mostly being funded by around £20 million from the UK Government, with the council’s own contribution estimated at £13 million.

But at a meeting on Wednesday April 16, Cllr Chris Morgan, the cabinet member for leisure, said costs for the project had increased since the original estimates in 2022.

He told colleagues the increase in cost was down to “a combination of factors including construction industry inflation, time delays, and design changes”.

“The project team has also worked to address the fact that the proposed main construction contractor – who had been scheduled to start works on site in September 2024 – went into administration shortly beforehand,” Cllr Morgan added. “A new contractor has been engaged but this has extended the project timeline.”

Caerphilly County Borough Council’s cabinet went on to approve the release of £0.5 million from its Community Infrastructure Levy, and £0.9 million from unallocated funding the Welsh Government awarded in March.

A further £1.1 million from council contingency funds will also be released if those other sources cannot cover the extra costs.

Cllr Morgan said the new leisure centre, when built, will boast a six-lane swimming pool and a leisure pool with flumes and interactive water features.

There’ll also be a wellness spa, children’s adventure soft play, a four-court sports hall, squash courts, a community room for events such as children’s parties, fitness studios, changing rooms and a café.

However, the main pool will be a uniform depth of 1.1m – a move criticised by local swimmers.

The council’s decision to spend on a new leisure centre for the town has proved a contentious issue among some critics, in recent months, because of proposals to shut down other sites elsewhere in the county borough.

A final decision on the future of centres in Bedwas, Cefn Fforest and New Tredegar is expected in May, and the council recently approved a third attempt to close Pontllanfraith Leisure Centre after two previous legal tussles.

Cllr Jamie Pritchard, speaking at Wednesday’s meeting, defended the investment in the new Caerphilly leisure centre.

Cabinet members heard previous surveys estimated renovations at the town’s existing centre, which is 50 years old, would cost around £17 million.

“For a similar amount of money, we are getting a far better, brand-spanking new leisure centre,” Cllr Pritchard said.

Cabinet members also heard the new leisure centre, when it opens, could bring in “potentially huge” revenue streams, because of the variety of services on offer there.