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Report of Head of
Development and Corporate Landlord
Author: Andrew
Busby
E-mail: andrew.busby@southandvale.gov.uk
Wards affected: Wantage in
particular, but potential district wide impact
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Cabinet members
responsible: Cllr Helen Pighills
Tel:
Cllr Helen
Pighills 01235 534446
E-mail: helen.pighills@whitehorsedc.gov.uk
Date: 16 February
2024
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Future Direction
of The Beacon, Wantage
Recommendations
That Cabinet:
(a)
Endorses the Beacon Development Action Plan (Appendix 1)
to optimise operation of the in-house
delivery model.
(b)
Notes the future potential options for the operation of the Beacon
that officers will compare an optimised in-house operating model
against, following delivery of the Development Action Plan to
ensure best value is achieved (Appendix 2).
(c)
Acknowledge that the currently unbudgeted implementation costs
outlined within the Development Action Plan, are subject to
agreement of full Council at its meeting in February 2024.
(d)
Requests officers enter into formal discussions with Wantage Town
Council in respect of their occupancy arrangements (Appendix
4).
(e) Note
that the strategic direction for the Beacon and the Arts more
widely will be met within the council’s new corporate plan
2024-2028.
(f)
Will receive a formal progress review of the actions above, and
future options, during quarter three of 2024/25.
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Implications
(further detail
within the report)
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Financial
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Legal
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Climate and
Ecological
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Equality and
diversity
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Yes
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Yes
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Yes
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Yes
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Signing off
officer
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Simon Hewings
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Vivien Williams
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Kim Hall
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Abi Witting
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Purpose of report
1.
To propose a future direction for the
discretionary service known as The Beacon, to enable ongoing
development of the service to offer ‘best value’ to the
council. This is to maximise community benefit and financial
efficiency, and to establish the long-term sustainability of the
centre.
2.
To outline the proposed Beacon Development
Action Plan, including the reasons why a plan has been developed,
how the actions within the plan were identified and what the
desired outcomes are. This report also outlines the impact of the
actions that are proposed to be measured during the initial
implementation period and in the future. Longer term actions can
only be indicative at this stage, as the plan will need to be kept
under review and the impact of earlier changes
considered.
3. To
provide Cabinet with indicative details of potential future
operating models for The Beacon.
4. Any
council decision that has financial implications must be made with
the knowledge of the council’s overarching financial
position, as reported to full Council in February 2023 when the
budget for 2023/24 was agreed. For Vale, the position reflected in
the council’s medium-term financial plan (MTFP) as reported
to full Council in February 2023 showed that the council was able
to set a balanced budget for 2023/24, but that there is expected to
be a budget gap in future years. However, there is great
uncertainty over this caused by a lack of clarity from
government.
5. The future
funding gap is predicted to increase to over £7.8 million by
2027/28, based on current cautious officer estimates of future
funding levels. Whilst it is anticipated that overall funding for
the council will remain relatively unchanged in 2024/25, the lack
of certainty on future local government funding from 2025/26
onwards means the level of funding, and the resulting estimated
funding gap, could be significantly different from current officer
estimates in either a positive or negative way. Every
financial decision, particularly those involving medium-term
funding commitments (i.e., those beyond 2024/25), needs to be
cognisant of the potential for significant funding gaps in future
years. The budget report for 2024/25 will provide an update on the
council’s financial position.
The provision of The Beacon provides links
to our Corporate Plan Objectives
6. Building
Healthy Communities
·
The Beacon contributes to the wellbeing
and health of our community through delivery of a variety of
programmed arts activities and by offering an affordable venue for
hire for community activities including dance/sports/special
interest groups, wellness activities and community support and
social events.
·
Implementing the action plan as outlined in this report will allow
The Beacon to improve the services it directly and indirectly
provides for the community, further increasing the positive impact
the centre has on the wellbeing of the district’s
residents.
·
The Beacon contributes to the
economic wellbeing of Wantage and the surrounding area, as it is a
key leisure and entertainment venue in the district, attracting
people to the town centre. It also offers an affordable venue
for community groups, businesses, and residents to use to deliver
their own income-generating activities.
·
As one of the key providers of
entertainment/Arts infrastructure for Wantage and the surrounding
area, the Beacon holds an important role for the community,
offering affordable and accessible facilities and activities for
all.
·
Its location within the town centre location
offers a well-placed entertainment venue and meeting place for the
community. Currently several local groups and businesses use
the venue to run activities for a range of people, including
vulnerable groups for whom limited alternative provision
exists. While some sections of the community are aware this,
the action plan will look to promote this more widely in the
community. The venue is a designated ‘Safe Space’ for
the community, offering refuge for anyone, in particular as a safe
haven for vulnerable individuals where they can come for
assistance.
7.
Building stable finances
·
The Beacon Development Action Plan
includes looking at ways to improve the financial viability of The
Beacon, including accessing potential
grants and external funding, increasing the in-house programme of
shows, classes and events, and reviewing the centre’s pricing
and marketing strategies to maximise income. The Beacon team would
continue to work with finance to develop the financial management
processes and identify innovative ways to further boost income
generation and minimise costs.
·
The action plan also includes
several capital projects and improvements for the centre, from
additional external branding (see Appendix 3) to undertaking
pre-emptive building improvements, to ensure the longevity of the
building and its activities for the future. By investing in
pre-emptive building improvements and maintenance the council will
minimise the need for costly substantial, avoidable or urgent works
in the future. Improvements will also improve the
accessibility and sustainability of the building, offer a more
appealing venue to customers.
Background
8.
Wantage Civic Hall (now known as The Beacon) was built in 1973 and
is typical of its time in architectural design. Upon local
government reorganisation in 1974, Wantage Urban District Council
ceased to exist, and The Beacon transferred from the Urban Council
to the District Council. The council subsequently entered into an
agreement dated 16 November 1977 with Wantage Town Council
regarding user rights for The Beacon. This agreement gives the town
council rights to office space, access and use of communal areas
and free use of the venue for democratic meetings and civic
functions each year in return for an agreed contribution annually
in respect of the cost of maintenance, lighting, heating, cleaning
and telephone services – there is no separate charge for
occupation, in terms of a licence fee. See Appendix 4 for more
information on the town council agreement/rights regarding the
venue.
9. The
potential current annual cost to the council of the free use
Wantage Town Council receive for their democratic meetings (56
meetings in 2023/24) and the 12 four-hour sessions they are
entitled to for civic functions has an estimated value of at least
£15,000 per year currently. This includes the value of
the room hire that could not be billed, and cost of staffing the
building for these uses. This figure does not include the annual
contribution the agreement allows the council to charge, which is
estimated to be 3.65 per cent of the cost of maintenance, lighting,
heating, cleaning, and telephone services. In 2022/23 this equated
to approximately £4,850.
10. The council’s
Strategic Property team are currently reviewing possible
alternative office accommodation options which might be suitable
for Town Council use with a view to commencing discussions with
them shortly.
11. During the
council’s fifty-year ownership of the building, it has
undergone numerous reviews and some internal improvements, with the
last major building improvements undertaken in 1998.
12. In 2011/2012,
following a steady decline in Wantage Civic Hall’s financial
performance over several years and following the transfer of
ownership of another council-owned civic venue to a town council
(Abingdon Guildhall), members of the public posed questions to the
council about the Hall’s future. The council decided to
retain the venue as a valuable asset to the local community and
commissioned a business review, which resulted in the renaming and
rebranding of the Hall as ‘The Beacon’ in
2014.
13. The centre currently employees 8.14 FTE and 3 casual
staff. The FTE provision includes four posts that are shared
with South Oxfordshire District Council, one apportioned 50 per
cent and three apportioned 30 per cent to Vale.
14. Between March 2020 and
September 2021, The Beacon closed to the public due to the Covid
pandemic and was temporarily repurposed as an asymptomatic testing
centre and the staff were redeployed where possible.
15. In September 2021, the
venue reopened to the public for hire and began re-introducing and
rebuilding programmed activities for the public. However, a
decision was taken not to reopen the café on the ground floor
after a second, brief lockdown in December 2021 following a review
of the café income and expenditure in the years running up to
the pandemic.
16. External hire is
slowly returning to pre-pandemic levels, despite increasing
competition in the area, and the venue is using the modest
programming budget to provide a selection of shows and events for
the community. These have seen good uptake and provide good
profit margins for the centre as well as receiving positive
customer feedback.
17. As with the whole
entertainment industry, it has taken some time to see public uptake
return to ‘normal’ levels following the Covid pandemic
and the subsequent cost of living crisis, but sales and visitor
figures are steadily improving for the centre and remain on a
positive trajectory.
18. Through
2022/23 officers commissioned a range of advisory reviews of The
Beacon, including those by Artisan Estates Management Limited and
Bryn Jones Associates Ltd that reviewed a range of options for
cabinet members to consider in relation to future options for The
Beacon. Consultancy support from the Oxfordshire arts sector
provided additional advice on the reports received from the above
consultants. Additional work has included a review of programming
costs, capacity assumptions, catering options, stock condition
review of the building and external areas.
19. The reviews and
further investigations have provided a range of guidance for
immediate and ongoing operational actions as well as options for
future management of The Beacon. It should be noted that these
reports each reflect a specific point-in-time, recognising that
there are some inaccuracies/assumptions within them and that by
their nature the situation described in them may no longer be
accurate.
20. The Artisan report
focused on the building viability and uses while the BJA review
focused on the business operations, with some consideration towards
the cultural aspects. Both reports included several
recommended operational and strategic improvements in their areas
of focus, with frequent overlapping areas, such as customer
engagement, and maintaining a well-presented venue. See below the
outline scope of these reviews.
Artisan Property Options
Appraisal (full report in Appendix 6)
21. Artisan was
commissioned by the Strategic Property team to undertake an options
appraisal to explore avenues open to the council from a real estate
asset management perspective. The approach of the Artisan property
options appraisal undertaken in May 2022 for The Beacon was to:
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explore and
identify the most viable options available to the council to
deliver the best yield from the property on its own and/or with use
of the car park land
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recommend a
preferred option that generates the most income and provides best
value for money to support the council’s long-term financial
position
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consider regional and national funding sources.
Bryn Jones Associates Ltd
(BJA) Business Options Appraisal (full report in Appendix
7)
22. In 2022 the council
and South Oxfordshire District Council commissioned BJA to review
the business options available to both The Beacon and South’s
venue Cornerstone. The report concluded in early 2023. The
scope of the BJA business options appraisal was to:
·
establish the best cultural and community models for The Beacon
·
recommend a preferred option that will establish The Beacon as an
artistic and cultural hub for the district,
maximise its income generating opportunities and minimise the cost
to the council of providing the facility to support the
council’s long-term financial position.
·
identify opportunities to benefit from external funding sources and
partnerships.
23. BJA
conducted an information review including finance, programming,
hires, ticketing, catering and marketing; one-to-one meetings and
consultations with relevant groups including members, officers and
venue staff; mystery visits and area familiarisation; visits to
other venues in the area; and secondary research including area
demographics, arts and local business sector reports.
24. The BJA
report included general recommendations for operational
improvements, as well as management models. Officers are
investigating and implementing the operational recommendations
where appropriate and are reviewing the models in more
detail. They recognise that some of the details within the
report, such as the financial assessments, are not in line with
actual figures and that the timing of this review required
significant assumptions to be made as the most recent data
available was heavily impacted by the pandemic.
25.
Also, in 2022 the council commissioned a
decarbonisation survey of the site, which identified a number of
operational improvements that will significantly reduce the venues
carbon footprint and energy costs. The survey also proposed
some possible major works to improve decarbonisation of the site,
such as solar panels. Officers are already progressing the
operational improvements. The major works were not currently
financially viable for progression in 2024/25 but will remain under
consideration.
26.
At the end of 2022, an officer working group
was set up to consider the various consultant reviews, undertake
additional investigations, and prepare an Arts Centre Development
Action Plan for Cabinet to consider. This group includes
representation from the Arts Centre Team, Finance, HR, Legal and
Strategic Management Team with support from an external arts
consultant from Oxford Arts Community Interest Company (CIC). The
action plan incorporates the recommendations that were identified
by multiple parties and/or that are expected to improve the
centre’s financial or community benefit
performance.
27. Shown below in Chart 1 is the annual net cost of Beacon to
the council for recent years. It shows the current forecast outturn
for this year 2023/24 and the current forecast net cost in 2024/25.
We have included the years affected by the pandemic in 2020/21 and
2021/22. During this period, the centre was predominantly closed
and repurposed. Appendix 5 shows the expenditure breakdown
for each year since 2015/16.
Chart 1 – annual financial performance of Beacon
– see appendix 1 for detail
28. Chart 1 shows the 2024/25 net cost forecast, inclusive of
additional spending on marketing and delivery of the action
plan. It also includes income growth/saving projections as a
result of the investment. The income growth suggested (see Appendix
5) shows a cost saving target, were all actions and additional
activity being delivered from the 1 April 2024. The actual
savings will be tracked through the financial year as actions are
delivered.
29. The Beacon has
not undergone any major capital building improvements since 1998
and several areas of the building and its fixtures have been
identified as being overdue for investment. Officers have
submitted capital budget/Community Infrastructure levy (CIL)
proposal of £100,000 towards fire safety renovations.
Additional capital works estimated at £1 million have been
identified but are not expected to be delivered in 2024/25. As part
of the action plan officers will investigate external funding
options that may contribute to the costs. See the Financial
Implications section for more detail on these projects and their
costs.
30. Officers are committed
to exploring and implementing all reasonable actions to improve the
medium-term financial viability of The Beacon, while still offering
substantial benefit to the community. In order to achieve these
improvements and maximise financial improvements some investment is
required in 2024/25. While the council may be able to bid for
external funding towards some works and projects, it will also
require financial investment by the council.
31. Initial delivery of
the Beacon Development Action Plan is expected to cost circa
£22,200 in addition to the marketing growth already underway.
This comprises of £5,000 consultancy support to develop the
Arts Strategy and £17,200 for a one-year 0.4FTE fundraising
post. Officers will review the impact of the fundraising post
in-year. See Appendix 1 for a breakdown by action. This cost of this investment expected to be offset by the
target income and savings the action plan could realise.
Options
32. The key areas under
consideration are:
·
the proposed Beacon Development Action Plan in table 1 and Appendix
1
·
potential future operating models for The Beacon Appendix 2
·
the sequence in which any decisions should be implemented.
Beacon
Development Action Plan
33. The commissioning of
the BJA consultant report has been a valuable exercise in
understanding the range of options other than direct delivery,
which may be available to the council, including:
·
the running of the centre by an external organisation, for example
a Charitable Incorporated Organisation (CIO)
·
an outsourced operator model.
34. It is important that
officers review the implications of each of these options in full
and set out clearly to Members the associated implications of each
option, including any risks and future governance arrangements,
noting that significant national funding routes have changed since
the report was commissioned.
35. Officers have
developed a Beacon Development Action Plan that collates the
recommendations and opportunities identified in the various
consultant reviews, associated stakeholder consultations undertaken
during the reviews and from the officer working group. See
table 1 for a list of the objectives, reason for inclusion and
desired outcomes and Appendix 2 for the objectives, actions,
measures, desired outcomes, responsible teams and target
dates.
36.
Using the high-level objectives and actions in
the Beacon Development Action Plan, officers will create an
in-depth operational work plan detailing all tasks required to
achieve the action plan objectives. The estimated cost of
additional resources to deliver the action plan and achieve the
income growth stated in Appendix 1 is £22,200. This has been
included in the budget proposals for 2024/25.
37. Officers will provide relevant stakeholders (as identified
in the action plan) with regular progress updates and performance
monitoring reports.
38.
Before drawing all of the recommendations into
an overarching action plan officers had already begun implementing
individual recommendations.
39.
Officers will provide cabinet with updates on
the implementation and impact of the action plan during delivery.
They will also provide an updated medium/long-term financial plan
(MTFP) outlining the level of financial commitment required from
the council to retain the centre as an in-house service following
the implementation of the action plan, which will aid in evaluating
the viability of any future alternative operating models being
investigated to ensure best value is achieved.
Table 1
– summary of action plan objectives
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Action Plan Objective
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Reasons for inclusion
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Intended outcomes
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Due by
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Started?
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Short Term (up to 9-12 months)
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Launch an Arts and Culture Strategy
alongside the new corporate plan
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Place-shaping,
communities and Partnerships, access for all.
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A
clear vision, purpose and strategic direction and objectives for
the council’s broader Arts and Culture provision, including
The Beacon
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2024/25 Q3
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Yes
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Increase the leadership capacity to
provide direction and development of a new vision
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To ensure the
action plan and intended outcomes are met
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Provide direction and the
development of a new vision
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2024/25 Q1-2
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Yes
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Produce a stakeholder map and extend
the working group to become a strategic cross-council
group
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To enable
services to feed into the action plan, to
ensure all parts of the council to understand the wider benefits of
the Arts
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Create buy-in from across the
council to deliver the vision for the Beacon
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2024/25 Q1
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Yet
to start
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Build relationships with local
groupings including town centre partnerships, business networks and
education providers
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Better
understand the needs of the community, business, and education
providers in the area and how the Beacon can best meet them;
maximise opportunities to work together collaboratively
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Collaborative projects developed
including wider funding opportunities; strong relationships with
groups, schools, and local organisations in place
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2024/25 Q3
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Yes
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Establish a community board that is
fully representative of the emerging communities in Wantage and the
wider district
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To help define
and measure cultural and community aspirations
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To
identify potential barriers to access for all
communities
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2024/25 Q2
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Yet
to start
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Ensure the staff and volunteer team
understand the equality, diversity and needs of the local
community
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To
ensure that the centre operates and the programme that is inclusive
and appropriate
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To
provide a suitably inclusive and accessible service for the
community
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2024/25 Q2
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Deliver an
updated artistic and cultural offer
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Improve
community benefit and audience engagement
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Improved
programming built on the needs and desires of the community;
improved relationship with artists and other art/culture providers;
Improved positioning within the market and sales
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2024/25Q4
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Yes
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Improve/increase community
engagement to inform review of the artistic and cultural
offer
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Improved
programming to meet the needs and desires of the community;
improved relationship with arts and culture providers
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Improved
positioning within the market; improved sales
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2024/25 Q3
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Yes
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Undertake discussions with Wantage
Town Council regarding historic agreement and their levels of
interest in a possible transfer of the venue
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To update terms
of any agreement to reflect best interested of both parties; To
confirm if the option of transferring the venue is
viable
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Agreement
reviewed and any revised terms formalised, clear indication if the
Town Council are interest in taking on the venue.
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2024/25 Q3
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Yet to
start
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Action Plan Objective
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Reasons for inclusion
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Intended outcomes
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Due by
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Status
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Obtain specialist marketing
resources as required
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Develop team
skills and capacity to develop the arts marketing
strategy
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Marketing
activities are showing positive impact on sales and income,
marketing plans and activities are developed
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2024/25 Q1
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Yes
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Implement a
Marketing Strategy/plans
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Improved
branding and marketing; improved signage
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Improved
branding and marketing; improved signage; increase in ticket sales
and memberships
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2024/25 Q2
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Yes
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Implement
pricing changes following a full review
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Improve
commercial viability
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Improved market positioning,
improved income generation, improved social value, continuing a
range of pricing options that are affordable for different elements
of the community
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2024/25 Q1
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Yes
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Implement a Fundraising Strategy and
secure fundraising resources for The Beacon
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Diversification
of income streams
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Reduction in
net cost to the council
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2024/25 Q1
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Yet to
start
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Maximise
room/space utilisation and set occupancy targets
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Improved
utilisation of services/spaces
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Improved
income; improved social value
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2024/25 Q2
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Yes
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Re-introduce a
coffee shop and catering offer
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Improved Social
Value, improve financial viability
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Improved social
value; savings and income generation as a result of change in
incentives and hours of operation
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2024/25 Q4
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Yes
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Implement updated operational
procedures
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To
improved centre operations
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Improved efficiency
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2024/25 Q3
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Yes
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Medium Term (12-18
months)
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Introduce volunteers, friends, and
ambassadors’ initiatives
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Community
integration and engagement
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Improved social value, community
links, value for money.
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2025/26 Q1
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Yes
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Establish more
robust performance monitoring and evaluation
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Management
information on which to base decision making
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Ongoing service improvement;
foundation for future options appraisal and funding
applications
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2024/25 Q3
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Yes
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Revisit
viability of the major Decarbonisation Work and external funding
opportunities
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Alignment with
the Corporate Plan objectives
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Carbon savings,
establish new baseline
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2025/26 Q1
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Yes
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Work with Economic Development to
establish a Social Value Calculator and targets for The
Beacon
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Quantify social
benefit of investment
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Improved measurement of
impact
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2025/26 Q1
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Yet
to start
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|
|
|
|
|
|
|
|
|
|
|
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Action Plan Objective
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Reasons for inclusion
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Outcomes
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Due by
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Status
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Long-Term (over 18 months and
ongoing)
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Assess the impact of the action plan
and how the revised in-house model compares to other possible
operating models to ensure best value is achieved
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Optimising the
inhouse model before comparisons are undertaken with other possible
models, to ensure best value is achieved
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Optimised in-house model being
delivered, updated forecasting projections prepared.
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2025/26 Q4
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Yes
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Consider the
councils ongoing financial commitment to The Beacon
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To ensure the
council achieves best value in regard to delivery of the
Beacon.
|
Improved financial
forecasting
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2025/26 Q4
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Yet
to start
|
|
|
|
|
|
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Possible
Beacon operating models
40. The Bryn Jones Associates business review outlined several
possible operating models the council could consider for the centre
that would require the council and South Oxfordshire District
Council (South) to commit to a joint operating model at the same
time. The three joint options are:
·
Joint in-house delivery
·
Joint external operator
·
Joint charitable organisation
41. Depending on any future decision of each council and the
timelines to implement their decisions they may be opportunities to
consider joint operating models, if they are looking to progress
the same operating model, in a similar time frame. This cannot be
assumed possible at this time.
42. The financial viability modelling for the options in the
Bryn Jones Associates report were prepared using data from a fixed
point in time, when the centre was still in the early stages of
recovering from the Covid pandemic, and do not reflect the
financial improvements that could be achieved by implementing the
action plan.
43. Appendix 2 provides an overview of each model together with
their key implications, risks, and benefits. That Cabinet could
consider during or following implementation of the action plan.
44. Implementing the action plan will allow the council to
establish the most efficient in-house financial forecasts and meet
their best value obligations, while keeping momentum moving on any
long-term service delivery decisions.
Other options
45.
Considering alternative operating models without/before implementing
the improvement actions identified is not considered appropriate at
this time. However, as the
improvement actions are expected to make a significant impact on
the net cost of the current service, fair consideration to those
options can only be undertake once the initial period of the action
plan has been implemented.
Progressing further investigations into potential future
alternative operating models while the action plan is implemented
will mean the council is prepared to move forward at pace if, when
reviewed against the optimised in-house model, a different model is
found to offer best value to the council when considered alongside
the emerging corporate plan.
46. Continuing with the service as it currently is, with no
significant improvements is not considered a viable option given
that all the reports commissioned, and
officers have identified improvements in the way the centre can be
operated. There is a
requirement within the Best Value legislation for officers to
continually seek to improve outcomes and efficiency.
Not implementing improvement
actions identified would mean opportunities for better service and
financial returns are not realised.
47.
Undertaking market testing and further
investigation on alternative operating models while implementing
the action plan will mean the council will have both optimised
modelling for the improved in-house model, and up to date viability
data for the alternative models at the same time.
Financial Implications
48. The forecast
net cost of running the Beacon in 2023/24 is £0.46
million. The benefits of the operational improvements
achieved to date have largely been offset by inflationary increases
in utilities and other financial pressures linked to the
significant increase in the cost of living crisis.
Consequently, net costs for the Beacon have not significantly
reduced. Officers are confident that the
investment required to deliver the action plan will reduce the
annual net cost to the council, predominantly through a greater
focus on income generation and
external funding bids that reflect the current national funding
regimes that have stabilised over the past two
years.
49. Recent reviews and investigations into industry comparators
indicate that it is unlikely that a staffed venue like The Beacon
can generate enough through ticket sales, hire and café/bar
sales to cover the full operating costs. The Beacon will
therefore likely need to rely on financial support to continue
delivering the benefit it offers to the community. Implementing the
action plan should maximise income opportunities and reduce the
level of financial contribution required from the
Council.
50. The current forecast net cost in 2024/25 is
£430,094. This includes additional marketing investment already
underway and an income growth target equal to 10 per cent more than
the best previous year. The growth target represents the income
growth and savings expected as a result of the additional marketing
activity and action plan delivery. The income growth
suggested (see Appendix 5) shows the cost saving were all actions
and additional activity being delivered from the 1 April
2024. The actual savings will be tracked through the
financial year as actions are delivered.
51. Officers modelled the current medium-term financial
forecast for the centre using the current proposed budget for
2024/25, with indicative inflationary growth applied. This
will be updated once the budget for 2024/5 has been set by Council
and regularly reviewed with finance colleagues as officers work
through the action plan. The objective is to see income
increase beyond the previous best achievable levels and
subsequently reduce the net cost as much as possible. Officers note that resources across many
service areas are in high demand and availability may impact
delivery of the actions within target timescales.
52. The 2024/25 target net cost includes increased income
levels following additional marketing investment already in
progress.
53.
By implementing the other improvements in the
action plan the council would position the centre on a trajectory
that could see its net cost continue to reduce in future
years.
54. In 2024/25 a Community Infrastructure Levy (CIL) proposal
has been submitted for £100,000 to make fire safety
improvements in the centre.
55. Other capital works identified for the centre that will be
considered in future years include:
o
re-roofing the building
o
replacement passenger lift
o
refurbishment of the toilets
o
refurbishment of backstage and dressing
rooms
o
refitting the kitchen
o
general refurbishment of all public
areas
o
equipment replacement and
improvements
o
reconfiguration of ground floor to improve
hireable space and flow
o
external branding improvements (see Appendix 3
for initial ideas)
56. By investing additional resources to implement the action
plan, the council will ensure the in-house operating model is
working at optimal efficiency in the long-term, maximising income
opportunities, using existing resources to the best of their
potential, increasing the community benefit delivered, and
minimising the net cost to the council. The current estimated
cost to deliver the action plan is £22,200, which is expected
to be offset by the target income growth and savings the action
plan could realise. This cost has been included in the
proposed budget for 2024/25. The income growth suggested (see
Appendix 5) shows the cost saving were all actions and additional
activity being delivered from the 1 April 2024. The actual savings
will be tracked through the financial year as actions are
delivered.
57.
While some of the staffing resources required
to implement the plan can be provided using the existing team,
including the recently advertised Head of Communities and Community
Arts Manager posts, this may result in capacity deficits elsewhere
in the centre’s delivery. Should this occur, the
council will likely need to buy-in expert knowledge to achieve the
best outcomes, and the existing team may require additional
training and development to maximise their potential on a long-term
basis.
58. Key actions in the plan include securing external funding
for the centre, which cannot be guaranteed in advance, and should
not be included in future budgets until it is secured. If funding
is secured, it is likely to be for specific projects that will
require some level of matched funding. In these instances,
officers would include the full cost to deliver in the expenditure
budget proposal until funding is secured, when the funding income
would be off set against the expenditure budget, reducing the cost
to the council of that activity.
Legal and Property Implications
59. Legal implications of implementing the overall action plan
are minimal at present, but individual actions may have their own
implications, which will be assessed and mitigated as they are
implemented. Officers will work with colleagues in Legal to
identify and resolve any legal implications for individual actions
identified.
60. Reviewing the
agreement terms with Wantage Town Council regarding their occupancy
of the Beacon will require legal, finance and strategic property
resources to complete. It is expected the review of the
current terms will be led by the strategic property team and it
should be noted that any changes would require both parties to be
in agreement.
Climate and ecological impact
implications
61.
Separate to any future decisions about The Beacon’s ongoing
operating model, the council has undertaken a decarbonisation
survey that identified some minor and major decarbonisation
improvements to help reduce the building’s carbon
footprint. While the major works are on hold for budget
reasons, keeping the service in-house will make implementing them
in the future more sensitive to operational and community
need. Minor improvements recommended in the survey are
already being implemented for the venue.
62.
Operating model options that are not managed in house will have
reduced opportunity to implement the council’s strategic
objectives including action on the climate emergency and would be
likely to have less access to national Government funding for such
schemes.
63.
Officers will apply the councils’ Climate Impact Assessment
tool for each action within the action plan as they are implemented
to ensure any reasonable adjustments taken to contribute to the
council’s climate and carbon neutral goals.
64. If Cabinet decide to
progress an alternative operator option in future, officers will
seek to incorporate all reasonable climate and energy saving terms
and KPI’s within the scope of any future arrangements.
Equalities implications
65. As each action is developed officers will consider the
equality implications, undertake Equality Impact Assessments and
put mitigations in place if appropriate.
Risks and Mitigations
66. That the action plan is not delivered within the proposed
timescale. Regular progress and performance reviews with the
relevant Head of Service, officer working group and corporate
programmes team to ensure timelines are monitored.
67.
That there are insufficient resources to
complete all actions identified in the action plan, reducing the
overall impact achieved. If there are insufficient resources
(financial or time) to carry out all actions within the timeline,
the officers working group will prioritise the actions that provide
the best value.
68. That the action plan does not have the expected impact on
the performance of the centre, either in terms of improved benefit
to the community or financially viability. The planned regular
review of actions being implemented will allow officers to forecast
the impact they will have, as will research officers will undertake
before implementation starts.
69. If the Council were to resolve to transfer future operation
of the Beacon to an alternative model (whether this is a charitable
organisation or a contract provider) there are variable risks
around the council’s options. For example, the council
may not be able to bring the operation back inhouse, if it has
proven unviable financially for an operator to deliver due to best
value standards. If an external operating model were identified for
progression specialist advice regarding the council’s
stepping-in rights would be sought as part of the further
investigation and viability work.
70. That the council resolves to find an existing entity to
take on operation of the centre, but no viable operators come
forward or those that do express interest do not represent value
for money. If, during market testing, officers are unable to
identify any potential operators with the knowledge or experience
required to operate the centre they will bring this to
cabinet’s attention so alternative options could be
considered, with the default position being that operation remains
the improved inhouse model being developed via the action
plan.
71.
That the existing Town Council agreement and
occupancy causes adds complexity to the process of moving to an
alternative operator model, should one of these models offer best
value to the council. The Council’s property team need
to engage with the Town Council at this time in order to be able to
explore options of achieving a satisfactory resolution.
Other Implications
72. There may be some HR implications connected to delivery of
the action plan, especially around developing skills and knowledge
in the team, and potentially when bringing in additional resources
to assist in implementation. Officers will work with HR
colleagues to assess specific HR implications for each action as
they are implemented.
73. If Cabinet decide to move to an alternative operator model
in the future, there would be HR implications. These could vary
depending on the option chosen. Managing these implications
and their impact of the team would require support from HR
colleagues and could incur additional costs to the council. Details
of the specific HR implications for each option are outlined within
their respective overviews.
74. Officers have met and will continue to meet with the
centre’s staff to ensure they are aware of the process The
Beacon is going through, the proposed action plan, how it could
impact on operational delivery and that they will have an
opportunity to contribute and buy into the future plans for the
centre.
Conclusions
75. After reviewing all of the consultants’ reports and
consultation feedback gathered during the reviews, and opinions of
the officers’ working group there appears to be several
improvements the council can implement to improve The
Beacon’s performance, many of which have already begun
implementation. The various improvements have been gathered
into an action plan for officers to work through.
76. While the council should consider possible alternatives to
in-house delivery, it should first do all it can to ensure the
in-house model is operating to its best potential, by endorsing the
action plan.
77. Establishing a clear understanding of the Council’s
stepping-in rights in connection to any potential external
operating model is essential before the council make any formal
commitment.
78.
Officers will work with the Corporate Programmes Team to report and
monitor delivery of the action plan. The centre team will also
provide regular updates to the officer working group, cabinet
members and other key stakeholder groups outlining progress of the
implementation and measures of the impact for each action.
Background Papers
None
Appendix 1 – Proposed Beacon
Development Action Plan
|
Ref
|
Objective
|
Activities
|
Outcomes
|
Responsibility
|
Measures
|
Est cost to deliver
|
Complete by date
|
|
|
1.
|
Launch an Arts and Culture Strategy
alongside the new corporate plan
|
1. Develop a
stakeholder map and explore barriers to access, 2. Draft Arts and
Culture Strategy to be aligned with other council policies; 3.
Engagement with stakeholders including cabinet, council, DGT boards
and the wider community
|
Clear vision,
purpose and strategic objectives for The Beacon within the broader
Arts and Culture Strategy
|
Community
Wellbeing including DGT team, Comms for engagement
|
Strategy agreed
by cabinet
|
Met by in-house
team and £5,000 consultancy support in budget growth
proposal
|
Within 12
months
|
|
|
2.
|
Increase the leadership capacity to
provide direction and development of a new vision
|
Identify
resources needed, recruitment/procurement of external resources as
needed, development of direction/vision for Art Centre, Launch new
vision.
|
Development and
provision of a new vision for the arts centre
|
Head of
Communities
|
Resources
secured and direction provided
|
Met by current
budget proposals
|
Within 12
months
|
|
|
3.
|
Produce a stakeholder map and extend
the working group to become a strategic cross-council group, which
allows all parts of the council to understand the wider benefits of
the Arts
|
Workshop with
working group to identify additional internal stakeholder, invite
additional stakeholders to join the working group, work with all
stakeholders to improve cohesion across services
|
Create buy-in
from across the council to deliver the vision
|
Arts Centres
team and wider stake holder group
|
Working group
extended, stakeholder map prepared, improved understanding of The
Beacon’s benefit across the council.
|
Met through
existing in-house resources
|
Within 12
months
|
|
|
4.
|
Build relationships with local
groupings including town centre partnerships, business networks and
education providers
|
Identify groups
and organisations to engage with, workshops to establish links and
opportunities
|
To identify
potential areas of collaboration (including around funding
opportunities)
|
Communities
team
|
Improved
engagement with external groups, Collaborative activities
undertaken
|
Met by in-house
team
|
Within 12
months
|
|
|
5.
|
Establish a Community Board that is
fully representative of the emerging communities in and around
Wantage
|
(Linked to
action 3) Develop a community engagement strategy, implement
community engagement strategy
|
To identify
potential barriers to access for all communities
|
Arts Centres
team
|
Improved links
with communities in and around Wantage, improved
programming
|
Met through
existing in-house resources
|
Within 12
months
|
|
|
6.
|
Ensure the staff and volunteer team
understand the equality, diversity and needs of the
community
|
Identify the
knowledge levels required for the team, draw up and implement a
training and development plan to fill any knowledge gaps
|
To
provide a suitably inclusive and accessible service for the
community
|
Arts Centre
Team
|
All staff and
volunteers have completed any necessary training
|
Met through
existing in-house resources
|
Within 12
months
|
|
|
7.
|
Deliver an
updated artistic and cultural offer
|
1. Review
external funding for a curated programme
2. Engagement with other Arts/Culture Venues/groups
3 Develop partnerships with performers/community groups, 5.
Consider changes to meet wider health, wellbeing, educational needs
and also daytime offer 6. Review the customer journey
|
Improved
programming built on the needs and desires of the community;
improved relationship with artists and other art/culture providers;
Improved positioning within the market; improved sales
|
Arts Centre
Team
|
All actions
implemented and positive improvement on community benefit, income
generation and customer feedback
|
Met through
existing in-house resources and/or through external funding if
secured
|
Within 12
months
|
|
|
Ref
|
Objective
|
Activities
|
Outcomes
|
Responsibility
|
Measures
|
Est cost to deliver
|
Complete by date
|
|
|
8.
|
Improve/increase community engagement
to inform review of the artistic and cultural offer
|
Achieved via
stakeholder mapping and community board actions above
|
Improved
positioning within the market; improved sales; improved social
value
|
Communities with
Consultation team support
|
Improved
customer feedback and uptake of activities
|
Met through
existing resources
|
Within 12
months
|
|
|
9.
|
Undertake discussions with Wantage
Town Council regarding historic agreement concerning the Beacon and
their level of interest in a possible transfer of the
venue
|
Identify any
terms of the existing agreements the council wishes to renegotiate,
and possible transfer of ownership offer
Initiate
engagement with the town council to gauge interest in a transfer
option, and/or to negotiate new agreement terms.
Complete revised
agreement and terms
Report back the
town council’s level of interest in potential transfer, to be
incorporated into any future decision making on the operating model
for delivery of The Beacon.
|
Report to
cabinet on outcomes of these discussions
|
Legal and
Property teams, with input from arts centres management
team
|
Agreement
reviewed and any revised terms formalised (if applicable), clear
indication if the Town Council are interest in taking on the
venue
|
Delivered by
in-house team
|
Within 12
months
|
|
|
10.
|
Obtain specialist marketing resources
as required
|
Recruitment/commission
|
Address skills
gap, resource to develop the arts marketing strategy
|
HR/relevant
HoS
|
Link between
marketing and bookings/ ticket sales improved
|
Recruitment
being undertaken.
|
Within 12
months
|
|
|
11.
|
Implement a
Marketing Strategy/plans
|
1. Develop an
art and specific strategy including mapping of potential users, 2.
Determine a realistic budget 3. Review Website and branding 4.
Address disconnects between marketing and ticketing 5. Cross
promotion and upselling
|
Improved
branding and marketing; improved signage; increase in ticket sales
and memberships
|
Arts Centre
Team, Comms
|
Marketing
strategy adopted,
|
Cost met from
in-house team
|
Within 12
months
|
|
|
12.
|
Implement
pricing changes following a full review
|
1. Review ticket
pricing, memberships, and room hire pricing, 2. consider
competitors and other council facilities, 3. discount approach and
donating spare tickets to VCSOs to generate social value
|
Improved market
positioning: Improved income generation, Improved social
value
|
Finance and Arts
centre team
|
Revised
pricing rolled out. New pricing policy in place.
|
Met through
existing in-house resources
|
Within 18
months
|
|
|
13.
|
Implement a Fundraising Strategy and
secure fundraising resources for The Beacon
|
1. Mapping
potential sources of external funding including, trusts and
foundations, corporate sponsorships, memberships; council pots;2.
Explore partnership bids 3. Link with marketing strategy 4. Explore
friends/fundraising board
|
Diversification
of income streams; reduction in the centres’ net cost to the
council
|
Arts Centre
Staff, external bid writer,
|
External
funding bids submitted
|
fundraising post
£17,200 0.4FTE 1yr Fixed term (initially)
|
Within 12
months
|
|
|
14.
|
Maximise
room/space utilisation and set realistic targets
|
1. Explore
co-working hub, 2. Engage with co-working hub operator, engage with
current and prospective room hires including businesses via econ
dev
4. review opening hours, 5. Consider room separation for temporary
or permanent occupation, 6. Set Targets for utilisation, 7.
Optimise use of space/behaviours and other low-cost activities to
maximise energy efficiency
|
Improved
utilisation of services/spaces; improved income; improved social
value
|
Arts centre team
and Development and Corporate Landlord
|
Targets
identified and being met, Positive impact on finances, appropriate
works to improve useable space undertaken.
|
Operational
improvements from inhouse team, capital works pending future
funding bids
|
Within 12
months
|
|
|
Ref
|
Objective
|
Activities
|
Outcomes
|
Responsibility
|
Measures
|
Est cost to deliver
|
Complete by date
|
|
|
15.
|
Re-introduce a
coffee shop and catering offer
|
1. Explore a
combined reception/coffee shop servery
2. Engage with potential independent and 3rd sector operators; and
catering providers for functions
3. Research menus and pricing options
|
Improved social
value; savings and income generation because of change in
incentives and hours of operation
|
Arts centre team
and Development and Corporate Landlord
|
Review
complete and findings reported on and actioned
appropriately
|
Resource from
existing budget
|
Within 12
months
|
|
|
16.
|
Review operational procedures and
partnership working within the council
|
1, Identify
services/areas where there are operational challenges using
existing corporate processes to deliver arts centre operations, 2.
establish review process with key officers in other teams to
identify ways to improve both the centres and corporate processes
and policies to improve efficiency
3. implement new processes and monitor their impact
|
Improved
efficiency and compliance with wider council rules and
policies.
|
Arts Centre
Staff
|
Improved working
efficiency
Corporate and centre policies/ processes align better
|
Met through
house resources
|
Within 12
months
|
|
|
17.
|
Volunteers,
ambassadors and friends’ initiative
|
1.
Develop/review volunteering and ambassador scheme, 2. Consider
‘Friends of’ Committee
|
Improved social
value; improved community links; improved value for money; improved
programming
|
Arts
Centre Staff (with communities’ team)
|
Recruitment of volunteers/ambassadors,
analysis of a Friends scheme completed.
|
Met through
house resources
|
Within 18
months
|
|
|
18.
|
Performance
monitoring and evaluation
|
1. Monitor
performance against the strategic objectives
2. Monitor delivery of the action plan, 3. Develop a daily
online/in person Customer feedback system, 4. Run annual survey, 5.
introduce KPI's for service delivery and regularly report on
performance
|
Ongoing
improvement of the service; sound basis for future options
appraisal; important for funding applications
|
Arts Centre
Staff (with Corporate Plan Reporting team)
|
reporting to
interim board
|
Met through
existing in-house resources.
|
Within 18
months
|
|
|
19.
|
Revisit
viability of the major Decarbonisation Work
|
1.research
funding opportunities in addition to the SALIX funding, 2. review
the feasibility of the proposed works and projected savings, 3. if
viable for progression, apply for funding and if secured, procure
relevant contractors
|
Carbon savings,
establish new baseline
|
Corporate
Landlord
|
Project
completed, improved energy efficiency
|
Met through
house resources
|
Within 18
months
|
|
|
20.
|
Work
with Economic Development to establish a Social Value Calculator
and targets for The Beacon
|
Explore the use
of social value calculator
|
Improved
measurement of impact
|
Communities
Team
|
separate service
value from operational costs
|
Met through
existing in-house resources
|
Within 18
months
|
|
|
21.
|
Assess the impact of the action plan
and how the revised in-house model compares to other possible
operating models to ensure best value is achieved
|
1. produce
detailed feasibility studies any alternative models selected for
further consideration, 2. prepare updated and detailed financial
projections for any alternative operating options and an optimised
in-house option, 3. Cabinet and council to take a formal decision
on a future service delivery model
|
Optimised in-house model being
delivered, updated forecasting projections prepared.
|
Cabinet and
Council
|
Full
council decision in place
|
Met through
existing in-house resources
|
April
2025
|
|
|
22.
|
Consider the
councils ongoing financial commitment to The Beacon
|
Update financial
forecasting for The Beacon reflecting the impact of the actions
delivered. Update financial modelling for the inhouse and
possible alternative models, consider which model offers best value
to the council, agree a funding approach for the Beacon that
minimises net cost and offers flexibility for the
future.
|
Improved financial
forecasting
|
Cabinet and
Council
|
Future funding
approach agreed for The Beacon
|
Met through
existing in-house resources
|
April
2025
|
|
Appendix 2 – potential operating
models – CONFIDENTIAL
NOT FOR
PUBLICATION
Not for
publication by virtue of paragraph 3 of Part 1 of Schedule 12A of
the Local Government Act 1972. The public interest in maintaining
this exemption outweighs the public interest in disclosing this
information.
Due to the confidential nature of this report,
it will not be published publicly, but will be circulated as a
separate attachment to appropriate members and officers.
Appendix 3 – External Branding initial
proposals
NOT FOR
PUBLICATION
Not for
publication by virtue of paragraph 3 of Part 1 of Schedule 12A of
the Local Government Act 1972. The public interest in maintaining
this exemption outweighs the public interest in disclosing this
information.
Due to the confidential nature of this report,
it will not be published publicly, but will be circulated as a
separate attachment to appropriate members and officers.
Appendix 5 – Financial
information
The tables and charts
below reflect direct running costs and income only from 2015/16 to
2022/23 and forecast figures for 2023/24 and
2024/25. They do not include support service
recharges, or year-end accounting adjustments for, for example,
depreciation. Marketing costs were separated from the
centre’s main budget in 2021/22 and are show separately from
that point onwards.
The direct costs have been
separated into the following categories:
•
Beacon staff costs
•
other direct costs, such as building operation
costs, cost to deliver the arts activities
•
marketing costs (staff and activities).
The marketing costs reflect both the staff costs and other
marketing expenditure budget
•
income generated by the centre
•
total net cost to the council.
All budget projections for 2024/25 have been updated throughout the
budget setting process and are subject to Council’s formal
approval of the 2024/25 budget.
The target budget for 2024/25 includes income growth equivalent to
10 per cent of the best income achieved to date (in 2018/19).
This target includes the additional income and savings expected to
be achieved through the council’s investment in delivering
the action plan and increasing marketing
provision.
The income budget for 2024/25 was set to show the potential
impact on income the investment in the action plan delivery and
additional marketing activity should have. It shows the
cost saving were all actions and additional activity being
delivered from the 1 April 2024. The actual savings will be
tracked through the financial year as actions are
delivered.
Staff costs within the budget proposals include indicative
inflationary increases that have yet to be agreed when the 2024/25
budget is set by Council. Once the budget for 2024/25 is set these
table and forecasts will be updated.
Appendix 6 - Artisan building options Apprasial
- CoNFIDENTIAL
NOT FOR
PUBLICATION
Not for
publication by virtue of paragraph 3 of Part 1 of Schedule 12A of
the Local Government Act 1972. The public interest in maintaining
this exemption outweighs the public interest in disclosing this
information.
Due to the confidential nature of this report,
it will not be published publicly, but will be circulated as a
separate attachment to appropriate members and officers.
Appendix 7 – Bryn jones associates
Business options appraisal CoNFIDENTIAL
NOT FOR
PUBLICATION
Not for
publication by virtue of paragraph 3 of Part 1 of Schedule 12A of
the Local Government Act 1972. The public interest in maintaining
this exemption outweighs the public interest in disclosing this
information.
Due to the confidential nature of this report,
it will not be published publicly, but will be circulated as a
separate attachment to appropriate members and officers.
