Dudley Council rejected more than £175,000 to upgrade Halesowen Leisure Centre just days after declaring it did not make enough money.

The future of the leisure centre is uncertain after the cash-strapped authority invited bids from groups to take it over, with closure threatened as the alternative.

Despite the shaky financial position of the centre, the council successfully applied for £176,125 to improve the environmental sustainability of the swimming pool.

The grant, from the government’s swimming pool support fund, was approved in March however on July 19 the money was sent back, raising concerns from Dudley’s Lib Dem leader, Cllr Ryan Priest.

Cllr Priest said: “The council has a responsibility to ensure its facilities are financially and environmentally fit for the future, and so it is disappointing to discover that Dudley Council refused a substantial grant for Halesowen Leisure Centre.

“The council’s financial position is dire, but that is exactly why we should be investing in schemes that deliver savings in the longer term.”

The improvements would have included installing triple glazing and variable speed pumps. When the bid for the grant was submitted it was not known whether the pool would have to close for the work to be carried out. It later emerged a closure of three or four weeks would be needed and officers calculated a loss of income of £45,000.

Despite savings from the closure and a saving of £2,664 per year from the energy efficiency of the triple glazing, the council concluded it would take 14 years to recover £37,000 in estimated lost income.

Cllr Paul Bradley, Dudley cabinet member for communities, climate change and economic delivery, said: “We took the difficult decision to return the grant once it became apparent the costs of the improvement work and associated fees would not represent value for money.

“We felt it wasn’t financially responsible to make this decision in the current climate.

“We did make an alternative proposal which would have allowed us to keep the pool open during this time but unfortunately it was turned down.”