Neath Port Talbot Council has approved a £250,000 loan for a social enterprise which manages the county’s leisure facilities.

Celtic Leisure, which was set up in 2003, manages six leisure centres and a theatre – the Gwyn Hall Theatre in Neath.

It requested the loan to help finance a £400,000 revamp at Pontardawe Leisure Centre.

Its plans include creating a new fitness suite and converting two existing squash courts into a space with a new mezzanine floor being installed.

It is hoped the new facilities will increase the number of customers from 1,000 to 1,400.

The local authority is planning to reduce its subsidy to Celtic Leisure by £140,000 next year as it tries to make £12m savings.

The leisure centres and theatre buildings are owned by the council and leased to Celtic Leisure.

Councillors approved the loan at a cabinet meeting on Wednesday, December 5.

Instalments will be repaid annually over the next five years at an interest rate of 2.5%.