A "STUNNING" deal to fund Worcester's new £10.5 million swimming pool can today be revealed - with taxpayers saving a whopping £300,000 a year.

After months of negotiations Worcester City Council has found a contractor to build the eight-lane facility and a separate operator to run it under a 10-year contract.

But your Worcester News can today reveal how an extraordinary outcome has emerged from months of private talks, meaning an annual taxpayers' subsidy for running leisure facilities across the city will now be scrapped.

Until now the council had to stump up a £288,000 yearly sum to pay 1Life to run its sport centres across Worcester.

The new operator, which beat off competition from five other final bidders, will now pay the council a yearly fee to take them over, meaning the taxpayers' subsidy will reduce to zero, with not a penny of subsidies required.

The deal, which took many politicians by surprise, has been welcomed by both Worcester's main political parties, who have called it "amazing".

A deal is also on the verge of being signed off on the funding to construct it, including cash from the £3.1 million sale of the council's old Orchard House HQ, £300,000 from the Heart of Worcestershire College, some money from the sale of other old bits of property and a successful Sport England grant, the size of which is being kept under wraps until the legalities are finalised.

Two loans will still be needed, repaid over two terms of 25 and 40 years, but the yearly taxpayers' subsidy will be scrapped, saving £3 million over the next decade - and the council also says the payments from the operator will pay off "much" of those two loans.

Under the deal 36 workers at the current leisure centres will transfer their employment to the operator, including the council's in-house sport, art and play team.

The deal is a huge sign of confidence in the city's new eight-lane pool, which will be based at the site of the existing Perdiswell Leisure Centre from January 2017.

In return for scrapping the subsidy the mystery operator will get to keep all the income.

The identities of both the operator and contractor being appointed to build it are being kept under wraps for now, with the latter subject to a 10-day 'cooling off' period over the next 10 days.

Both deals have been voted though by the council's Conservative leadership, which called it "stunning".

Councillor Mike Johnson, cabinet member for sport, art and retail said: "We took a bold step when we said we wanted to go for an eight-lane, regional-standard pool for Worcester - and it's delivered a really stunning result for the city.

"I can't say enough how good a result this is."

Councillor Marc Bayliss, the deputy leader added: "It's a great success, all the nay-sayers who said 'it'll cost us more money' have been proved utterly, utterly wrong."

Councillor Simon Geraghty, the leader, called it "an amazing deal for the city" while opposition Labour politicians said staff deserved credit for it.

“It’s an amazing deal for the city, it really is – it’s a complete benefit to the city, we will be getting paid for providing these services rather than pay to offer them.

“We’re generating a revenue gain rather than have to use a taxpayers’ subsidy, if we listened to the nay-sayers we would not have achieved this.”

Labour Councillor Joy Squires, the group's deputy leader, said: "I'd like to congratulate you, especially the officers who have pulled off a very good effort here.

"I look forward to it coming to fruition."

The report for last night’s cabinet meeting also revealed how the £300,000 cash from Heart of Worcestershire College will fund a classroom for students, an office and separate corridor, as sixth formers will study for leisure qualifications there.

There will also be a state-of-the-art disabled ‘pod’ which the county council is paying £17,350 for.

The 40-year loan will fund the erection of a giant wing on to the existing Perdiswell building to host the eight-lane pool, which means competitions can be staged in Worcester for the first time.

The 25-year one will pay for a major refurbishment of the rest of the building, which the council says will mean the site appearing virtually unrecognisable from how it looks now – almost like a new-build featuring a new gym, cafe, sports hall, fitness studios and more.

Last night’s vote means the whole project is now just weeks away from starting, but the leisure centre will remain open while work gets underway.