A leisure centre is set to get a £10m state-of-the art refurbishment despite pressures on town hall finances.

Westcroft Leisure Centre in Carshalton is is due to receive a brand new eight lane 25m swimming pool with spectator seating, enlarged teaching pool, eight badminton court sized Sports Hall, six massage and treatment rooms, two dance studios and a 170 workout station gym.

The revamped centre will also house a new creche, cafe, IT facilities, and a new library replacing the current Carshalton library, which the council hopes will be transform the centre in to a cultural hub.

The revamp– which Sutton Council want to see finished in time for the 2012 London Olympic and Palalympic Games because of the expected increased demand for sports facilities – would see the facility closed for 12 months from July this year.

Councillor Graham Tope, Sutton Council's spokesperson on leisure and libraries, said: “It is 33 years since the centre opened and the proposed investment will save us millions of pounds in the long run because it will mean far cheaper running costs, it will generate more income and there will be a series of energy saving measures.

“The proposed incorporation of Carshalton Library will also provide an enhanced library service to a wider range of people at a lesser cost.”

“Doing nothing is not an option because Westcroft is becoming very expensive to run and we face having to spend millions just to keep it operational.”

But Conservative opposition Councillor Tony Shields said the project was the right thing at the wrong time.

The council is looking to save £35m in the next four years.

Coun Shields said: “We will not get a good return for selling assets when the market is low, and will be hit with spiralling interest rates on the loans.”

He predicted the town hall would struggle to service its debt – which would come on top of some £10m that will be borrowed to renovate the town hall.

He warned residents could see other frontline services hit, or increases in council taxes, because of the squeeze on finances from the loans.

He said the council should offer a referendum to residents over whether to make the investments in the town hall and leisure centre now or after finances are on a more even-footing.

The plans for the leisure centre are due to be approved by Sutton Council's executive on Tuesday.

The council plans do not reveal what assets will be sold to pay for the centre, other than Carshalton library.