Agenda item

To consider the Draft Budget 2016/17 including the related Savings and Redesign and Income Generation Proposals, Financial Transactions and Base Budget Revisions, and underlying Medium Term Financial Strategy (MTFS) assumptions.

Martin Fox, Finance Business Partner provided a summary of the report and highlighted the key points about the savings proposals. Cllr John Reynolds, Cabinet Member City Economy, highlighted the main points about each of the savings, redesign and income generation proposals, as follows:

Phased Removal of remaining Grand Theatre Grant:

The Panel were reminded that Adrian Jackson, Chief Executive of the Grand Theatre had attended the previous meeting and an in depth discussion had taken place relating to this proposal.

The Panel welcomed the appointment of the new Chief Exec and, in particular, his intention to have a business and profit centred approach to the theatre's development.

The Chair highlighted that the budget cuts to venues in the City could have direct and negative impact on the overall Visitor Economy strategy if care is not taken. The Panel highlighted that it was important for officers to continue to advise and guide management of those venues to assist in their business development.  The Panel requested future feedback on how the venues mentioned have produced business plans for future financial sustainability.

Review remaining Lighthouse Media Centre Grant:

The Panel were reminded that the position relating to the Lighthouse Theatre had been discussed at a previous meeting. The Financial Business Partner and the Service Director had met with the Lighthouse Theatre management and given them an opportunity to come back to the Council for assistance, as it would be useful to change the offer around digital and technology.  As yet they have not taken the opportunity up

Further restructure of City Economy Services:

Cllr Martin Waite highlighted business rent retention in the autumn statement and highlighted the need for employees in the City Economy Service, who work directly with potential investors, to be genuine account managers that manage ‘P and Ls’. He suggested that in order to separate Wolverhampton from other Local Authorities we need to be in a place where the account managers add value to the business community.

The Cabinet Member highlighted that the business improvement does understand the impact of the extra business levy and increases. He highlighted that Scrutiny Panel had heard from Wiggle company representative how pleased they were with the account manager who had done a lot more than other Local Authority account managers.

The Service Director advised that the report had been produced some time ago and that things had moved on since to restructure into five key areas. She advised that the Head of Enterprise was responsible for several managers, who in effect were account managers.  She advised that the strategic management had been strengthened to correspond with Area Action Plan (AAP) and alongside that there would be City Development, Skills and Employment, Visitor Economy, Service support and external funding.

Whilst there were reductions to the mainline budget, it was explained that the Council had reached the financial stage of some substantial bids from European Union which if approved would increase staffing capacity around business support and account management. It is expected that the Council will also be able to continue the ERDF funded Black Country Gold Grant Scheme for businesses.  Together with the ESF funded Skills and Employment bid there could potentially be up to ten people funded by European funding for the next three years.

The need to match fund means that it was difficult to reduce mainline staffing any further.

Increase new commercial activities within cultural venues (Archives, Art Gallery, Bantock House):

The Panel was reminded that scrutiny of the cultural venues had taken place in depth at a recent scrutiny Panel meeting.

Further external funding of Outdoor Events:

The recent bonfire event at the Race course was praised as a really good family event. There had been an issue with the car park marshalling but this would be addressed at future events at the race course and the boxes would also be available.

The Head of Visitor Economy was asked to consider the need to double up on events, such as horse racing and the Madness Concert that had taken place in the summer.

The Panel requested further information back to the Panel about business plans at other venues.

Bilston Craft Gallery – review current service provision including delivery of exhibitions and craft play:

The Cabinet Member advised that since the report was written there had been a review of the situation and the collections would continue to be kept at Bilston Craft gallery.  The Panel highlighted that there are groups in the Bilston area that would be willing to pay for the service provision. The Scrutiny Panel voiced concerns about maintaining and keeping the premises clean and operational in addition to the delivery of the craft play service and one off events.

The Panel advised that a programme should be developed for Bilston Craft Gallery through rigorous business planning. Management confirmed that detailed five year business plans that have been produced for each venue to enable better control of income and expenditure, as well as planning.

Mark Blackstock, Head of Visitor Economy advised that the new approach, meant that there were more displays and events now being delivered by partners and local groups, which required  minimal input by curatorial staff, the groups tended to carry out most of the work to set up displays themselves.

Financial transaction and base budget revisions as follows:

Drawdown of one off grants for City Economy:

The Finance Business Partner outlined that the drawdown was as a result of grant funding being available to reduce the net costs of the service for 2016/17 without impacting on service delivery.

Panel thanked the Finance Business Partner for identifying the drawdown funding.    

Resolved:

That the comments of the Panel be reported to Scrutiny Board 15 December 2015.