Report No CD14/16

Eden District Council Executive 9 February 2016

Tour of Britain Cycle Race 2016 - Request for Eden District Council to become a Delivery Partner for the Eden stage

Reporting Officer: Communities Director

Responsible Portfolio: Communities

1 Purpose of Report

1.1 To agree for the Council to become a Delivery Partner with Cumbria County Council to once again be involved in hosting a stage of the 2016 over the period 4 to 11 September.

1.2 From 1.1 above to agree to set aside a one off non-recurring growth item to cover the costs set out in the body of the report.

2 Recommendation:

It is recommended that:

a) The outturn reports on the economic and media coverage derived from Tour of Britain 2015 be noted

b) EDC agrees to support the 2016 TOB event as it passes through the district in order to maximise the economic benefits to Cumbria on the same basis as 2015

c) A one off growth item of £46,000 be recommended to Council for inclusion in the 2016/17 budget. This includes the cost of being a Delivery Partner.

3 Report Details

3.1 At the Executive of 7 April 2015 Report No CD31/15 minute E/147/4/15 Members resolved to support the Council becoming a Delivery Partner with the County Council in order to bring the to Eden. Executive also resolved to set aside a budget of £46,000 from the Economic Development Budget to cover the cost of becoming a Delivery Partner and other costs including additional staff time.

3.2 The 2015 event was extremely successful not only on a National level, but locally with many communities being involved in activities in their own areas, these ranging from simply decorating the yellow bikes which were placed along the route to staging larger events such as those in Melmerby and in Penrith.

1 3.3 The Aviva Tour of Britain 2015 Economic Impact Report (Appendix 1) contains a number of interesting statistics which support any decision to once again support the event, statistics include:

• 50,000 people attended the event in Cumbria

• Average length of stay was 1 ½ days

• The net visitor expenditure in Cumbria alone was £1,754,559

• The total net visitor expenditure for the whole event was £3,469,773

It has been suggested by the County Council that Eden benefitted to the tune of approximately 75% of the overall benefit of Stage 5.

3.4 A further document the “Media Pack” (Appendix 2) provides independent information on the coverage last year’s event received. The pack which covers stages 3 & 5 in Cumbria, shows the extent of the “Shop Window” offered to Cumbria and Eden through its participation in the event, not only on a National but a truly international level, statistics include:

• Stage 1 shown live on ITV 1

• All other stages shown live on ITV 4

• 1 Hour highlights shows each evening

• Post Tour review programmes shown 10 days following the event.

• Average viewing figures for stage 5 Live 323,000 Highlights 463,000 and repeats 53,000

• 13 TV Broadcasters and 129 Territories with a potential of 116,487,600

• Much more publicity ranging from interviews on Various Radio stations to the general press.

3.5 The exact route for the 2016 event is yet to be confirmed however it is understood that by Eden committing to become a Delivery Partner for the 2016 event that the proposal is for Eden to host a significant section of one of the stages. This offers Eden another opportunity for businesses and communities to become involved in another high profile event and offers a major opportunity to confirm that the County and particularly the District is open for business as usual following the recent devastating floods.

4 Policy Framework

4.1 The Council has four corporate priorities which are: • Decent Homes for All • Strong Economy, Rich Environment • Thriving Communities • Quality Council

2 4.2 This report meets the Thriving Communities corporate priority.

5 Implications

5.1 Legal

5.1.1 Eden District Council will need to enter into a contract with Cumbria County Council to become an official Delivery Partner of the Tour of Britain. Road closures and perhaps town centre closures will need to be arranged. These were arranged in one application in 2015 in association with the County Council.

5.2 Financial

5.2.1 Any decision to reduce or increase resources must be made within the context of the Council’s stated priorities, as set out in its Council Plan 2015-19 as agreed at Council on 17 September 2015.

5.2.2 In addition to the Delivery Partner contribution for the stage there are a number of other costs which would normally fall to the District Council, this list is not exhaustive but the type/areas of expenditure are outlined in Table 1 below.

5.2.3 In 2015/16 the Budget was set at £46,000 costs were carefully managed and as a result the total cost for the event was £29,000 with £17,000 being returned to the Economic Development Budget. From this it would appear that it may be possible to have a lower budget than last year, however as we are to stage a start event which it is felt may require additional funds to stage it is felt that it would be prudent to provide a budget of at least the same level as last year, costs for the event will once again be carefully controlled / managed.

5.2.4 The overall estimated cost of becoming involved in staging the event are set out below:

Table 1 Services/elements which EDC would have to meet the Estimated cost of to support a stage of the Tour of Britain Cost/Implications £ Delivery Partner contribution 20,000

Staffing, additional internal staffing from a variety of areas Up to 6,000 may be required during the build up to the event

Other services that normally fall to a District Council as part Up to 5,000 of a Tour of Britain stage: • Stewarding:6/8 security staff with qualifications • Voluntary Stewards (up to 50) and their welfare • Town Centre additional street cleaning and public realm • improvements

3 • Liaison with local businesses • Town centre road closures if needed (CCC pay for all • other road closures) • Bus and Taxi route changes • Access/closures to EDC owned and other car parks • Licencing for sales • Dressing of/flowers for podium • Provision of media room Extra local promotional Budget 5,000

Contingency 10,000

Total £46,000

5.2.4 It is not possible to fund this from existing 2016/17 economic development budgets so the funding would need to be a growth item in the 2016/17 budget (to be considered at Council on 18 February). If agreed, then any of the budget not used would go back in to balances and not be available for other purposes.

5.3 Equality and Diversity

5.3.1 The Council has to have regard to the elimination of unlawful discrimination and harassment and the promotion of equality under the Equality Act 2010 and related statutes.

5.3.2 There are no equality and diversity issues associated with this report.

5.4 Environmental

5.4.1 The Council has to have due regard to conserving bio-diversity under the Natural Environment and Rural Communities Act 2006.

5.4.2 There are no environmental issues arising from this report.

5.5 Crime and Disorder

5.5.1 Under the Crime and Disorder Act 1998 the Council has to have regard to the need to reduce crime and disorder in exercising any of its functions.

5.5.2 There are no crime and disorder issues arising from this report.

5.6 Children

5.6.1 Under the Children Act 2004 the Council has to have regard to the need to safeguard and promote the welfare of children in the exercise of any of its functions.

4 5.7 Risk Management

5.7.1 Risk Management is a process whereby attempts are made to identify, actively control and reduce risk to protect the Council. This covers not only the traditional areas of insurance risk but also the organisational risk that the Council faces in undertaking all its activities.

5.7.2 As with any public outdoor event, there will be health and safety considerations covering both spectators and riders. The Tour of Britain is a well - established event and the organisers will be experienced in reducing the possible risks. Eden District Council has staff with experience of delivering public events in partnership with others.

5.7.3 Support for this event will involve staff time which will mean that work priorities may have to change to accommodate the time needed to host a successful event. This will be agreed with managers in advance so existing levels of service will not be adversely affected wherever possible.

5.7.4 The costs outlined in the report are only estimates at this stage as the costs of staging a start are not confirmed at this stage, as a result there is the possibility that they may be higher. However last year a similar figure was set aside for the event with only £29,000 being spent.

6 Reasons for decision/recommendation

6.1 To agree that the Council becomes a Delivery Partner with the County Council of the Eden stage of the to be staged over the 4 to 11 September on a similar basis to 2015.

6.2 In making the financial contribution of £46,000 to host the event this is supporting the vitality of Eden through proven economic benefit and media coverage.

Ruth Atkinson Communities Director Governance Checks: Checked by or on behalf of the Chief Finance Officer ✓ ✓ Checked by or on behalf of the Monitoring Officer

Background Papers: Contact Officer: Doug Huggon, Leisure Services Manager Telephone Number: 01768 212323

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1 Introduction

Welcome to Frontline’s economic impact assessment of the Aviva Tour of Britain 2015. This economic impact assessment is based upon the findings from a web-based survey of 2,051 Tour spectators and follows the principles set out in HM Treasury’s ‘Green Book’ Appraisal and Evaluation Guidance and the EventIMPACT guidance. This paper explains the impacts resulting from stage five of the race, held between Prudhoe and Hartside Fell on 10th September 2015. The objectives of the research are to:

The remainder of the paper is structured as follows:

Section 2: The event and the visitors

Section 3: Economic impact assessment

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2 The event and its visitors

We show some of the key statistics for the race below:

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The following chart shows the % of visitors who associate each of the following sponsors with the race:

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3 Economic impacts

While the race is likely to have brought about a number of different types of To calculate the net visitor expenditure, GVA and employment impacts we economic impacts, including impacts related to race staffing, and impacts applied the following adjustments to this figure: associated with procurement expenditure by the event organisers, the impacts related to visitor expenditure are likely to significantly out-weigh these. For example, research into the found that visitor expenditure accounted for 92% of the total net impact of this event. This research has therefore chosen to focus exclusively on visitor expenditure related benefits.

The total gross expenditure at the event was £4,781,314. This can be broken down as follows:

We provide full details of our methodological approach in Appendix 1.

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Summary of economic impacts – UK

The figure below shows the net visitor expenditure of the event on the UK economy. We present our findings for other areas in Appendix 2.

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We summarise the net expenditure, net employment and net GVA impacts in the table below. We have assumed that GVA impacts will equal 51.7% of business turnover, based on an analysis of turnover and GVA figures for the retail and hospitality sectors, as reported in the most recent Office for National Statistics (ONS) Input-Output tables. We also assume a UK average productivity rate of £39,000 per full time equivalent (FTE) worker (based on figures in the ONS Blue Book)

Visitor Characteristic

Net Net GVA FTE Area expenditure impact employment impact impact Northumberland £894,353 £462,381 12 Cumbria £1,754,559 £907,107 23 UK £3,469,773 £1,793,873 46

These impacts compare favourably with the net total expenditure impacts of other, similarly sized events, which have taken place in the UK over the past few years:

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Appendix 1: Tour Series, Tour of Britain and Women’s Tour of Britain Displacement economic impact assessment methodology We measured displacement by asking the question “if the Tour of The gross visitor spend figures have been calculated based on the Britain/Tour Series had not been on, what would you have done instead of aggregate visitor expenditure of the visitor survey respondents, scaled up to your visit?”. Options included: the total number of visitors. This was then converted to a net economic impact figure based on the following approach:  visited another event or place in the host local authority areas  visited another event or place elsewhere in the host region Deadweight  visited another event or place elsewhere in the UK  visited another event or place outside of the UK We accounted for deadweight by asking the question “why did you come  stayed at home or gone to work here today”. Options included: We classified any expenditure by visitors who would otherwise have visited  Watching the race/stage was my sole reason for visiting somewhere else in the study geography as displaced expenditure.  Watching the race/stage was part of my reason for visiting  Watching the race/stage was not part of my reason for visiting The multiplier effect  I live locally  I work locally We estimated the impact of the multiplier effect based on evidence from previous published research, including reports published on the UK Sport We assumed that any spectator that comes to the location solely to watch Impact research database. In previous years we have taken an average the race should be classified as 0% deadweight; that any spectator for from other sporting events, including the World Half Marathon whom watching the Tour was part of their reason for attending should be Championships and the Rugby Super League Grand Final. classed as 50% deadweight, and that all other spectators should be classed as 100% deadweight.

Leakage

Based on experience from previous research studies, we assumed leakage of 20% at a town level, 10% at a county/local authority level and 5% at a UK level.

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Appendix 2: Local area economic impacts

The figure below shows the net visitor expenditure of the event on the Northumberland economy.

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The figure below shows the net visitor expenditure of the event on the Cumbria economy.

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Appendix 3: Breakdown of visitors by area of origin, age and gender

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Cumbria Stages 3 and 5 Global stars like , Andre Greipel, Zdenek Stybar and Sir took part in the 2015 edition of the race.

6 Reigning National Road Racing Champions

20 Teams from 10 Countries

8 British Teams including 10 Teams that raced in the Great Britain 2015 Tour de France Stage 3 Start Stage 3 Route Stage 5 Route Stage 5 Finish

2015 Winner:

2015 Winner:

2015 Winner: Peter Williams

2015 Winner: Peter Williams 2015 Winner: Owain Doull

2015 Winner: Owain Doull

2015 Winner: Cannondale - Garmin

Stage 3 & 5 Coverage

Other Regional Broadcasters on the event included:

Bespoke TV Ribble Film

London LIVE Notts TV

Voice of My Own STV BBC 5Live also Broadcast from the Aviva Tour of Live & Pre-Recorded radio 27 interviews with organisers Britain

9 Different regional BBC Radio Stations

9 Different commercial Radio Stations

Entire radio programmes 3 broadcast from location at Tour of Britain

Stage 3 & 5 Coverage

Stage 3 & 5 Coverage Further Online News from: Online coverage also included BT Sport, Eurosport, ESPN, Yahoo and MSN Stage 3 & 5 Coverage

StageStage 33 && 54 Spectators Spectators Engaging the community

Branding SweetSpot Group Rathbone House 01932 831 485 4a Heath Road tourofbritain.co.uk Weybridge Surrey, KT13 8TB