Agenda item

*RESOLVED –

1.   That a more commercial approach be taken to both the programming and the hiring of the Winding Wheel Theatre to reduce the financial subsidy provided to the venue.

2.   That alternative operational arrangements be put in place to support the commercial approach, including focussing opening hours around planned commercial events, and making changes to the availability of the venue for hire.

3.   That the proposed changes to fees and charges for room hire, equipment hire and staffing cost at the Winding Wheel Theatre, as detailed in Appendix B of the officer’s report, be approved for implementation from 1 April 2024.

4.   That authority be delegated to the Service Director for Leisure, Culture and Community Wellbeing, in consultation with the Cabinet Member for Town Centres and Visitor Economy, to apply appropriate negotiated fees for new activities and opportunities that are introduced during the period covered by the officer’s report.

REASON FOR RECOMMENDATIONS

The proposals have been brought forward to respond to the savings targets identified in the Budget Strategy Implementation Plan, which was approved in November 2023. This will enable the Council to work towards developing a balanced 2024/25 budget and MTFP, which will support the Council to continue to deliver against the vision and priorities set out in the Council Plan.

The Cabinet Member for Town Centres and Visitor Economy presented a report setting out detailed proposals to reduce the financial subsidy that the Council currently provides to The Winding Wheel Theatre, to support the Council’s budget position for 2024/25.

The officer’s report responded to the specific proposal set out in the Budget Strategy Implementation Plan, which had been approved by Cabinet in November 2023, for a “Fundamental review of The Winding Wheel Theatre’s operations focussed on achieving a cost neutral budget position”. The proposal had an annual savings target of over £200,000, as part of the thematic intervention of “Increase income / behave commercially”.

Table 1 in the officer’s report showed that in the financial year 2023/24 the Winding Wheel Theatre was budgeted to run with a net operational cost of approximately £378,000.

Officers had reviewed in detail the Theatre’s operation in 2023, to see how a cost neutral position could be achieved.

It was therefore proposed that as from 1 April 2024 (for all new bookings), the Council would only proceed with the booking of productions, where the anticipated income from ticket sales would be sufficient to cover the Theatre’s operating costs.

As a more commercial approach was taken, it was anticipated that the number of productions programmed at the Theatre would be reduced.

Also, in line with taking a more commercial approach, it was proposed that fees and charges be increased to a level which would enable the Council to cover the costs of providing the venue to any hirer. The proposed levels of fees and charges for the financial year 2024/25 were set out in Appendix B of the officer’s report.

As part of the development process for the fees and charges proposals, officers had contacted the regular hirers of The Winding Wheel Theatre and invited them to complete a short engagement survey regarding their views on how they thought any significant price changes would affect them and their groups. A summary of the responses received was attached in Appendix A of the officer’s report.

As a result of the planned changes and the anticipated reduction in opening times of the building, there would be operational savings in staffing and premises management costs. There were HR implications, as less staff hours would be required, but it was expected that this reduction in staff hours would be achieved without any implications for staff on permanent contracts. A number of staff had already chosen to take voluntary redundancy or early retirement.

The proposals, as set out in the report, would generate ongoing savings of circa £172,000 per annum. This would reduce the net controllable budget to circa £207,000 in 2024/25, as set out in Table 2 of the officer’s report.

*RESOLVED –

1.   That a more commercial approach be taken to both the programming and the hiring of the Winding Wheel Theatre to reduce the financial subsidy provided to the venue.

2.   That alternative operational arrangements be put in place to support the commercial approach, including focussing opening hours around planned commercial events, and making changes to the availability of the venue for hire.

3.   That the proposed changes to fees and charges for room hire, equipment hire and staffing cost at the Winding Wheel Theatre, as detailed in Appendix B of the officer’s report, be approved for implementation from 1 April 2024.

4.   That authority be delegated to the Service Director for Leisure, Culture and Community Wellbeing, in consultation with the Cabinet Member for Town Centres and Visitor Economy, to apply appropriate negotiated fees for new activities and opportunities that are introduced during the period covered by the officer’s report.

REASON FOR RECOMMENDATIONS

The proposals have been brought forward to respond to the savings targets identified in the Budget Strategy Implementation Plan, which was approved in November 2023. This will enable the Council to work towards developing a balanced 2024/25 budget and MTFP, which will support the Council to continue to deliver against the vision and priorities set out in the Council Plan.