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4.1 Funding the UK Centre for Carnival Arts

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4.1 Funding the UK Centre for Carnival Arts AGENDA ITEM 4.1 EXECUTIVE DATE: 8TH FEBRUARY 2010 SUBJECT: FUNDING FOR UK CENTRE FOR CARNIVAL ARTS (UKCCA) REPORT BY: HEAD OF RESOURCES & PERFORMANCE , HOUSING & COMMUNITY LIVING CONTACT OFFICER: 01582 547501 PAM GARRAWAY IMPLICATIONS: LEGAL 9 STAFFING EQUALITIES 9 COMMUNITY SAFETY FINANCIAL 9 RISKS 9 ENVIRONMENTAL 9 OTHER CONSULTATIONS: COUNCILLORS CONSULTED 9 SCRUTINY COMMITTEE CONSULTED STAKEHOLDERS CONSULTED OTHER WARDS AFFECTED: None LEAD EXECUTIVE MEMBER(S): Councillor Ashraf RECOMMENDATION(S) 1. Executive is recommended to offer one-off funding of £60,000 to the UK Centre for Carnival Arts subject to other partner contributions, to ensure that the capital deficit on the project is covered and the project completed REPORT Background 2. The UK Centre for Carnival Arts (UKCCA) is located in Luton and has developed the first purpose built state of the art carnival arts facility in the UK 4.1/1 with dedicated provision including rehearsal rooms, business incubation suites, performance, office, and showcasing space. 3. UKCCA commissions new work, supports an extensive programme of creative learning and skills, building progression routes in formal and informal education and enables the carnival sector to develop new talent and its workforce. The organisation delivers Creative Partnerships in Luton and Bedfordshire and the Foundation Degree in Carnival Arts validated by the University of Bedfordshire. Through a strategic partnership with Heritage Lottery Fund, Museums Libraries and Archives Council and V&A museum UKCCA is also developing a carnival archive. 4. The provision is heavily supported through the Arts Council. 5. Luton Council currently does not support the UKCCA although they do receive support from London Luton Airport Ltd. In 2009/10 UKCCA received gift aid of £60,000 from London Luton Airport Ltd. Capital project 6. The capital project has been developed through a partnership of UK Centre for Carnival Arts, Luton Borough Council, East of England Development Agency, European Regional Development Funds and Arts Council England. Luton Borough Council contributed the land, but no direct resources. 7. Although various difficulties have arisen during the course of the project, there is now financial certainty on the completion of the project and the final cost. 8. A capital deficit has arisen on the construction, and although the bulk of the deficit required by UKCCA is being sourced either from the Arts Council or from their own reserves, the Council have been asked to contribute £60,000. All options for further financial support have been explored by Council officers with the Arts Council and UKCCA, but there remains a funding gap. 9. It should be noted that the deficit also includes an element for the final construction to the building environs that will give on-going revenue savings to UKCCA, which are currently creating pressures in their first year of operation. Future developments with the Council 10. The Council is currently exploring options with UKCCA to relocate some of its services within the building that have the potential to create efficiencies for the Council, which may in some way offset the one-off cost of £60,000 over time. However these options are not completed and at this stage no firm commitment can be made on the level of the potential efficiencies. 11. The Luton Carnival is currently delivered by LCST and the Council have drawn an all party agreement for a staged three year transfer to the UKCCA. 4.1/2 In 2012 the Luton Carnival will be delivered through an SLA agreement, by UKCCA. LEGAL IMPLICATIONS 12. This report has no legal implications. This has been agreed by Richard Stevens, Head of Legal Services on 2nd February 2010 EQUALITIES IMPLICATIONS 13. There are no equality implications but to be noted is the valuable inclusion and cohesion elements that UKCCA bring to the communities of Luton. Sign off by Sandra Legate Equalities Manager Housing and Community Living 2nd February 2010 FINANCIAL IMPLICATIONS 14. The financial implications are set out in the body of the report. The £60,000 grant can be covered from additional one-off income received in the Chief Executives department 2009/10. Agreed by Head of Corporate Finance 2nd February 2010. ENVIRONMENTAL IMPLICATIONS 15. This report has no environmental implications. This has been agreed by Jodie Colclough, Climate Change Officer on 2nd February 2010 RISK IMPLICATIONS The main risks associated with the project are shown below: 16. Luton Borough Council offers the money, but it is insufficient to cover the full capital costs Mitigation: The final cost is known and there is financial certainty. Luton Borough Council will only offer the resources if the other partners all agree to their contributions. 17. UKCCA unable to raise the necessary funding to realise their preferred redevelopment Mitigation: a secure loan would be needed and an increase in fundraising targets (during a financially vulnerable climate) and a reduction in all programme expenditure. COUNCILLORS CONSULTATIONS 18. Councillors Simmons and Councillor Ashraf 4.1/3 OPTIONS 19. The Council can either: 1) Offer UKCCA a one-off grant of £60,000 to complete the work (Subject to all other parties agreeing their significant contributions) 2) Offer UKCCA a £60,000 loan which would mean the organisation would have to increase its fundraising targets in a financially vulnerable climate 3) Refuse to support a major new centre for arts in the town in its first year of operation. 4.1/4.
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