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1 London Borough of Sutton Strategy Committee – 10Th February 2003

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1 London Borough of Sutton Strategy Committee – 10Th February 2003 7 London Borough of Sutton Strategy Committee – 10th February 2003 Report of the Executive Head of Leisure Management FEES AND CHARGES - SECOMBE THEATRE Ward Location: Not Applicable Author(s) and Contact Phone Numbers: Area Served: Borough-Wide Mark Fisher, Cultural Services Manager 020 8770 4604 Lead Councillor: Cllr Leslie Coman Key Decision Report Summary At the Strategy Committee meeting held 23rd December 2002, Members agreed in view of the Sutton Performing Arts Network (SPAN) deteriorating trading position to transfer from 1 st April 2003 the management and operation of the Secombe Theatre, Charles Cryer Theatre and Grove Hall to the direct responsibility of the Council. SPAN has agreed that the transfer may be brought forward and would support the Council throughout the process. As part of the transfer Members agreed a provisional revenue budget of £270,000 to run the services detailed above, for the period April 2003 to March 2004. This represents a reduced budget of £30,000 on SPAN’s 2002/3 grant to operate the theatres, but reflects the change in service provision to a hire only basis. In order for the appropriate levels of income to be generated to offset expenditure at the theatres it is necessary to increase the fees and charges at the Secombe Theatre from 1st February 2003. The hiring charges for the Charles Cryer Theatre were agreed by this Council in November 2002. The Secombe Theatre charges are presented for approval now as this venue has remained open. Recommendation I recommend the Committee to: (a) Agree the fees and charges schedule for the Secombe Theatre (detailed in appendix A) covering the period 1 st February – 31st December 2003 1. Background 1.1 On 23rd December 2002 this Committee received a report explaining that the management responsibility of the theatres would be transferring from SPAN to the Council. SPAN have agreed that the transfer may be brought forward to before 1st April 2003 and would support the Council throughout the process. 1.2 There is a need to stabilise this service, both financially and by introducing good management principles. The last nine months have seen a fluctuating and at 1 times inert market with programming changes that have not been supported by the local community. In order to stabilize and strengthen this service, there is a need to reduce the level of financial risk linked to larger productions and in the shorter-term concentrate on developing the arts education programme and the community/amateur productions/hirers. 1.3 The Council will then have direct responsibilities for the management of the Charles Cryer Theatre, Secombe Theatre and Grove Hall. The theatres will in future be used for community/amateur productions, an arts education programme, conferences and general hirers. The venues will not be open at other times, in order to reduce operating costs. By adopting this programming policy, it is hoped that large financial risks on shows can be eliminated, thus stabilising the service. In the next 12 months very few, if any, professional productions will be staged, as a result. 2. PRICING REVIEW Each year the Council reviews the charges made to the public for the services provided. The fees and charges set are the maximum allowed, thus giving the Council the flexibility to introduce special offers and discounts (a tool to stimulate interest, generate income and attract new target markets). 2.1 The following principles that have been applied in establishing our changes: • To meet the financial objectives of the theatres. • Simplification where possible, including deletion of charges which are confusing or little used. • Rounding of charges to simplify collection and administration. • Price adjusting to take account of the location and quality of the facility where appropriate. • Comparing charges for theatre/public hall facilities in neighbouring local authorities, and • Adopting a range of charges providing discounted rates for community groups 2.2 These policies were identified as good practice within the Audit Commission “The Price is Right” national report published in September 1999. The Commission has researched the issue of user charges across all council services detailing how well charges are managed in local authorities, focusing on whether charges are being used to their full potential to help councils meet their own priorities and identifying practical steps that councils can take to improve. 2.3 The Council is at liberty to reduce charges in order to take account of seasonal special offers. 3. ISSUES 3.1 The pricing of the Theatres in the Borough have been recognised as below average in comparison with similar and nearby facilities (see table overleaf). In order to meet financial targets a substantial price increase will be necessary and new charges introduced. 2 3.2 The predominant use of theatres is by local community groups and organisations and there has been little development of the business/commercial sector use of the facility. This has been identified as an area for potential growth particularly based on the location, ease of parking and available facilities at the theatre. 3.3 An off peak/peak price has been included in the schedule with Friday included in the peak period. 4. PROPOSED CHARGES 4.1 The charges have also been compared with other Theatre charges, using data collated through a benchmarking pricing comparison with nearby authorities (see table below). Table 1 SUTTON THEATRES: CURRENT PRICING COMPARISON EXERCISE FOR WEEKLY/DAILY HIRE OF MAIN AUDITORIUM THEATRE NO OF SEATS WEEKLY DAILY HIRE(£) HIRE(£) SECOMBE 400 2096 625 - 830 ASHCROFT 700 7000 2100 (CROYDON) DORKING 801 6650 830-1050 HALLS STAG 465 3940 390-980 (SEVENOAKS) EPSOM 406 5160 690 PLAYHOUSE HAWTH 862 7000 2200 (CRAWLEY) ADRIAN 231 1440(example) 217 - 315 MANN (EWELL) RICHMOND 840 15000(estimate) 3500(estimate) THEATRE YVONNE ARNAUD (GUILDFORD) 590 tba 1500 NOTES: 1. The Secombe Theatre prices are at current rates 2. The Epsom Playhouse prices are based on an hourly charge 3. The Adrian Mann Theatre is available from 16.00 hours. Only community or commercial hire. 4. Richmond Theatre given as estimate (no set rates) 3 4.2 The exercise has provided useful information on comparative pricing of nearby or similar theatres. It should be noted that theatres adopt different approaches to pricing, in some cases negotiating all fees (eg The Harlequin Theatre in Redhill). In addition, clearly a different ‘product’ is being offered particularly in terms of capacity and standard at theatres in the region. 4.3 Price changes are a very emotive and the market can be very sensitive to significant changes. The income target of £60,000 from hires at the theatre has meant that increases are necessary to offset expenditure levels of £360,190. 4.4 Although the proposed charges in many cases have increased, it is not the intention of the theatre management to deter local community groups from using the facilities. The contribution that the Secombe Theatre plays in the community is recognised and every effort will be made to accommodate as many groups, schools and societies as possible. 4.5 However, there is also a need for the community to appreciate the costs of staffing and operating a theatre. In the past the charges may have been too low. Any significant increase in price could be seen as a negative factor, but it is believed that the proposed charges still represent value for money. 5. Financial Implications Group Finance Comments 5.1 The fees and charges for the Secombe Theatre were last reviewed in November 2001. An allocation of £270,000 has been given to Leisure Management to run both the Secombe Theatre, Charles Cryer Theatre and Grove Hall on a hire only basis in 2003/04. 5.2 A provisional budget has been constructed for the running of the theatres and has identified that a significant increase in fees is necessary, as detailed at Appendix A. Assumptions made in the setting of the budget are that £60,000 will need to be generated via hire of the venues. In order to achieve this income target the theatres will need to be in use for 22 weeks of the year. 5.3 As is evident in table 1 the charges for the Secombe are lower than other theatres in the region. Strategic/Corporate Finance Comments 5.4 None 6. Influence of the Council’s Core Values 6.1 Partnership To successfully manage the arts/entertainments service requires a high level of partnership working. Major partners would include Carshalton College and Sutton Arts Council. 6.2 Involvement in Council’s Decision Making The arts community in Sutton have responded well to requests for information and other input into corporate reports, strategies and documents in a timely and enthusiastic way. 4 6.3 Accessibility The future for arts in Sutton will be linked to harnessing and supporting initiatives emerging from local groups and individuals; as well as encouraging community representation on local committees and decision-making bodies. 6.4 High Quality/Cost Effective/Meeting Community in a Changing Environment The service is committed to improving the quality of service and identifying the needs of the local catchment through questionnaires, complaints procedure, the Investors in People process, quality assurance mechanisms, the Education Programme and the associated inspections. 6.5 Equality The service has embedded the Council’s policy in relation to employment and service provision and has worked and consulted with many of the borough’s relevant agencies, in this respect. 6.6 Investing Wisely for the Future One of the greatest thrusts is to invest in the Arts Education Programme which is believed will encourage audience development. 6.7 Staff The service is working towards gaining Investors in People in 2003, which sets out the processes in which staff are involved in decision making, communications and understanding how the service works towards the Unit’s and Council’s corporate goals.
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