SHEFFIELD CITY COUNCIL Cabinet Report 9

Report of: Director of Culture ______

Date: April 28 2010 ______

Subject: BID FOR UK CITY OF CULTURE 2013 ______

Author of Report: Paul Billington ______

Summary:

This report sets out the case for Sheffield to submit a final bid to become the first UK City of Culture in 2013. It outlines the benefits of UK City of Culture, summarises the city’s bid and identifies the estimated costs. ______

Recommendations:

Cabinet is recommended to:-

(a) to approve the submission by Sheffield City Council of a final stage bid to become UK City of Culture 2013; ; (b) to delegate to the Executive Director Place in consultation with the Cabinet Member for Culture, Sport and Tourism, the Chief Executive, Director of Resources and Deputy Chief Executive all appropriate steps to progress the bid to become UK City of Culture including approval of the final bid content to be submitted to the Department of Culture, Media and Sport; (c) to delegate to the Executive Director Place in consultation with the Cabinet Member for Culture, Sport and Tourism, the Chief Executive, Director of Resources and Deputy Chief Executive authority to negotiate with the Department of Culture, Media and Sport on any necessary arrangements and agreements prior to the future approval by Cabinet of final terms if the city is selected as UK City of Culture; (d) to note that given the extremely tight timescales imposed by the UK City of Culture bidding deadlines, this item of business is being ‘fast-tracked’ and therefore Cabinet’s decision will be capable of implementation immediately: (e) to note the estimated costs and benefits of becoming UK City of Culture and reflects the estimated £3.63M within the Council’s forward financial strategy; (f) to agree that the first phase of the City Council’s UK City of Culture expenditure (i.e. up to £300K from the total of £3.63M) be allocated in the City Council’s budget for 2010/11 and authorise the Executive Director Place in consultation with the Cabinet Member for Culture, Sport and Tourism to finalise the associated programme and its delivery.

______

Background Papers: NONE

Category of Report: OPEN

2 Statutory and Council Policy Checklist

Financial implications

YES Cleared by: E Walker Legal implications

YES Cleared by: David Hollis

Equality of Opportunity implications

YES Tackling Health Inequalities implications

NO

Human rights implications

NO :

Envi ronmental and Sustainability implications

NO Economic impact

YES

Community safety implications

NO Human resources implications

NO Property implications

NO

Area(s) affected

ALL

Relevant Scrutiny Board if decision called in

CULTURE, ECONOMY AND SUSTAINABILITY SCRUTINY AND POLICY DEVELOPMENT BOARD

Is the item a matter which is reserved for approval by the City Council? NO

Press release

Yes

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EXECUTIVE DIRECTOR, PLACE

REPORT TO CABINET APRIL 28 2010

SHEFFIELD BID FOR UK CITY OF CULTURE 2013

1. OUTCOME AND SUSTAINABILITY

1.1 This report sets out the case for Sheffield to submit a final bid to become the first UK City of Culture in 2013. It outlines the benefits of UK City of Culture, summarises the city’s bid and identifies the estimated costs.

2. WHAT DOES THIS MEAN FOR THE PEOPLE OF SHEFFIELD?

2.1 Following on from the success of as the European Capital of Culture in 2008, the value of culture and in particular hosting an international cultural programme is increasingly recognised as delivering a range of benefits. For the people of Sheffield these benefits will include the following:- a) National and international profile and further improvement to the city’s image and reputation as a great place to live; b) Economic benefits – both directly related to the event (for example tourism) but also wider and longer term investment in the city as Sheffield’s reputation grows as a great place to work, re-locate and invest; c) Community and social benefits – the city will deliver an unrivalled cultural festival which aims to reach out and engage every community in the city; d) A major and sustained boost for cultural activities in the city and in turn providing Sheffield with an upturn in creativity, new talent, innovation, and confidence – all of which are essential ingredients in creating a ‘competitive’ edge for the city.

3. SUMMARY

3.1 Around 30 cities initially expressed an interest in UK City of Culture. A long list of 14 cities submitted initial bids in December 2009. In February 2010, the Department of Culture, Media and Sport announced four shortlisted cities – Sheffield, , Norwich and Derry. The final bid deadline is May 21 2010 with a decision expected in the summer. 3.2 Government is expecting that the winning city be a ‘ fitting follow-on from Liverpool’ and one that demonstrate creativity and innovation alongside whole city support, realism and a ‘step change’ in the economic and social impact that UK City of Culture will deliver.

4 4. BACKGROUND TO THE BID

4.1 Sheffield is already a great city for culture and a great place to visit - from our theatres and galleries to our international music pedigree, our capacity and track record in delivering major events and most of all the passion in the city for everyone to get involved in arts and culture. These strengths have been acknowledged by the Department of Culture, Media and Sport in the feedback on our initial bid. 4.2 However, the city still has some way to go in terms of developing its cultural offer and indeed maximising the benefits of culture. The bid therefore aims to create a ‘step change’ in cultural participation, tourism and the creative economy and ensuring a lasting legacy. 4.3 The overall goal of our bid is to get everyone in the city involved in arts and culture. The bid is about the people of the city taking part and them being the creators, performers and artists. The bid will aim to encourage people to ‘participate and not just watch’; to ‘create and not just consume’ and to be ‘ doing and not just spectating’. The arts world would describe this as culture and arts ‘ by and with’ people rather than ‘ to or for’ them. The people of Sheffield will therefore be invited to be at the centre of our programme – to craft and create it, so that the UK City of Culture 2013 will be truly 'Created and Made in Sheffield' . 4.4 But the bid is also about creating world class activities and events in the city that will be enjoyed by local people but also attract visitors from across the UK and beyond. This will be achieved via challenging and inspiring the city’s home grown talent to deliver world class quality in 2013 but also by inviting national and international talent into the city to co-produce world class programmes alongside the people of the city. 4.5 As well as offering a high quality cultural programme, the city’s final bid will also have to demonstrate lasting social and economic impact, be distinctive and offer artistic excellence. The bid also needs to show that it’s built upon broad based partnerships, has strong political support and is both ‘realistic and deliverable’. 4.6 The bid is being rapidly developed to create the cultural programme for 2013 and to calculate the associated social and economic impacts. This work will continue through to the bid deadline in May. Given the commitment in the bid to people ‘taking part’ – the programme will give strong emphasis to the role of the city’s communities and young people. It will therefore be as much about ‘grassroots’ participation in culture as it will be about the major cultural institutions of the city.

5. THE BENEFITS OF UK CITY OF CULTURE

5.1 The expected economic benefits to the city from UK City of Culture are substantial. The best data available is from Liverpool and the impact of its year as European Capital of Culture (ECC) in 2008. A summary is given below. a) Liverpool attracted 9.7 million additional visits in 2008 and 97% of these were first-time visits to the city. b) ECC generated an economic impact of £753.8 million in additional direct visitor spend. This equated to a 6:1 return in terms of economic impact against expenditure. c) Positive stories on Liverpool as a city grew by 71% in the national press between 2007 and 2008.

5 d) The Turner Prize (contemporary arts awards) alone had an economic impact of £10M and the Liverpool Sound Concert at Anfield generated £5M. 5.2 In Sheffield, we have long recognised the benefits of major sporting and cultural events. For example, the World Snooker Championships has an annual economic value of £5.7 million. Similarly, hosting the FIFA World Cup is estimated to have a potential economic impact of at least £85M.

6. BID DEVELOPMENT

6.1 The bid is being developed by a small team primarily from the City Council and Creative Sheffield. The team is being advised by a culture sector specialist with international experience. 6.2 The Bid Team in turn reports to a wider Stakeholder Group, chaired by Paul Allen a Sheffield-based writer, journalist, playwright and BBC presenter. The Group includes the key players from the cultural sector but also wider business interests, Community Assemblies, the universities, NHS etc. This ‘whole city’ approach reflects the importance of demonstrating that there is extensive engagement in the bid by organisations and communities across the city. 6.3 Because the bid will focus on a central role for communities and the wider arts sector, the Bid Team has embarked on the biggest programme of consultation on culture ever undertaken. This included an open invite to all cultural organisations – of all descriptions and sizes – to a public consultation event on April 16. The invite to this event was extended to members of the general public and to all Community Assembly Chairs and lead managers. 6.4 A series of programming groups are meeting to develop the outline programme for 2013 and the lead-in years. This will involve over 50 invited organisations (cultural and community) and individuals and is a follow on from a major consultation event that took place in November in preparation for the city’s initial UK City of Culture bid. 6.5 Wide ranging political scrutiny of UK City of Culture took place at Full Council on April 7 and this followed an agreed Notion of Motion at Full Council on September 2 2009. 6.6 On April 30 there will be an initial discussion with key businesses in the city where they can find out more about the bid; discuss opportunities to get involved and consider potential sponsorship options. This follows the endorsement of the bid by the Sheffield First Partnership at its meeting on March 10 2010. 6.7 A meeting has also been arranged with colleagues from local authorities within the region to seek their support and to discuss opportunities for working together in 2013 and the lead-in years. 6.8 Over and above the face-to-face consultation set out above, there are opportunities for groups and individuals to give us their ideas on the bid at Sheffield’s UK City of Culture website www.sheffieldcityofculture.com 6.9 Over and above the consultation leading up to the final bid, a commitment has been given via the Community Assembly Chairs that if Sheffield is selected as the winner of UK City of Culture, then extensive and sustained consultation will take place with communities over the 3 years leading up to 2013.

6 7. HUMAN RELATIONS IMPLICATIONS

7.1 There are no specific human relations implications arising from this report.

8. EQUAL OPPORTUNITIES IMPLICATIONS

8.1 The Department of Culture, Media and Sport has set a priority for bidding cities to identify how they will reach out to all communities and especially those groups who traditionally feel excluded from cultural activities. The nature of the Sheffield bid –with its focus on engagement and participation – will prioritise the needs of those communities which are currently the least engaged with cultural activities. Equally, the existing cultural activities within communities will be embraced by and reflected in the 2013 programme.

9. ENVIRONMENTAL SUSTAINABILITY

9.1 Whilst not an explicit requirement by the Department of Culture, Media and Sport, if Sheffield becomes UK City of Culture 2013, then our programme will include a strong focus on environmental sustainability reflecting the city’s existing commitment as set out in the Council’s Corporate Plan – ‘A City of Opportunity’ and the Carbon Reduction Framework to meeting the challenge of climate change and in keeping with our status as the UK’s Greenest City.

10. FINANCIAL IMPLICATIONS

10.1 The Department of Culture, Media and Sport has said to all bidding cities that a budget of around £10M is regarded as the minimum to ‘deliver a reasonable UK City of Culture programme’ . Sheffield’s initial bid indicated a budget of £11M, made up of £10M spend in 2013 and £1M phased spend over the 3 lead-in years. Following the city’s inclusion on the shortlist in February, the City Council has made a specific provision for £300K, agreed corporately as part of the 2010/11 budget monitoring process, to support the first year implementation of the UK City of Culture Programme. 10.2 The draft programme for 2013 and the lead-in years will be included in the city’s final bid. Initial estimates based on the outline programme submitted in the city’s initial bid, suggest that the provisional budget of £11M is realistic whilst also sufficient to deliver an ambitious programme. The outline annual phasing of the budget is as follows:-

10/11 £300K 11/12 £300K 12/13 £400K 13/14 £10M

10.3 The estimated breakdown of costs is as follows:-

Programme 60% £6.6M Marketing and promotion 15% £1.65M Operations and Management 15% £1.65M Contingency 10% £1.1M

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10.4 The bid development costs are already funded via a commitment from the City Council’s LABGI fund.

10.5 Whilst the Department of Culture, Media and Sport recognises that there are still difficulties for shortlisted cities to secure final commitments on funding, bidders are being urged to offer as much certainty as possible in their final bids. The outline funding strategy for Sheffield’s bid is set out below. a) The City Council to commit to one third of the total cost i.e. a maximum of £3.63M. If the city is selected as the UK City of Culture then budgetary provision for this spend will be laid out as part of the Council’s forward financial strategy. i.e. there is currently no specific identifiable funding for this within the Council’s revenue budget streams and it will therefore be met from reprioritising other projects or funding.

It should be noted that as with all major sporting and cultural events, a significant share of the financial benefits will accrue to partners and commercial organisations across the city. The City Council itself is therefore not likely to be a major beneficiary in direct financial terms but its investment (as with many major projects) will be seen as ‘pump priming’ to attract partnership funding and deliver significant economic and social benefits to the city. b) Arts sector funding – initial discussions with the Arts Council have indicated strong support at both a regional and national level for UK City of Culture. Arts Council gave an estimated £5M towards Liverpool ECC. However, they have indicated that they will not contribute towards any UK City of Culture bidding costs, nor make any pledges to any of the shortlisted cities. Arts Council strategy will be to wait until the UK City of Culture winner is announced and then engage in a 3-way dialogue with the winning city and the Department of Culture, Media and Sport. It is however, realistic to assume a significant contribution towards the UK City of Culture by Arts Council . c) Regeneration and marketing funding – Liverpool ECC achieved a significant contribution toward their budget from European funding, regional development funds and support for national and international marketing. Whilst the economic landscape has changed since Liverpool developed its funding package, it is still regarded as realistic to assume a significant contribution towards UK City of Culture from these sources. Work is already underway to explore the potential support available. d) Commercial sponsorship – Liverpool ECC secured £12M cash and a further £7M in kind support from commercial sponsors. Again the sponsorship landscape has changed in the last 2 years. However, given the national and international nature of UK City of Culture, it is still expected to be attractive to sponsors and again work is already underway to open up dialogue with businesses in the city and those with a strong Sheffield connection. e) Ticketing and merchandise – Liverpool ECC raised £4M income from ticket sales and merchandise. 10.6 The nature of bidding for major events such as UK City of Culture is that the City Council makes a considered decision to make an initial commitment to the event. This is made on a reasonable expectation that other partnership funding will be forthcoming. The indications of

8 expected funding from partners and sponsors are very encouraging and the evidence of wider funding for Liverpool ECC is reassuring. However, in advance of the final decision to select the UK City of Culture winner, the City Council is expected by the Department of Culture, Media and Sport to confirm commitment to its UK City of Culture contribution in the final bid by May 21 2010. No contracts or financial obligations are required of bidding cities until the winner is chosen.

11. LEGAL IMPLICATIONS

11.1 The Council has wide ranging and diverse powers to provide cultural events in its area as well as powers to encourage tourism. Although the final programme of activities has yet to be finalised it is anticipated that they will fall under the powers provided by; • s144 Local Government Act 1972 – Power to encourage visitors for recreation and exhibitions • s145 Local Government Act 1972 – Provision of entertainments • s19 Local Government Miscellaneous Provisions Act 1976 – Provision of recreational facilities • s12 Public Libraries and Museums Act 1964 –Provision of Museums and Art Galleries • s2 Local Government Act 2000 – Well-being power if in accordance with City Strategy and government guidance 11.2 When submitting the final bid the Council has not been asked to sign any binding agreement to deliver the programme if selected as UK City of Culture. The consultants who are managing the bid process on behalf of the Department of Culture, Media and Sport have been asked at what stage such an agreement would be required. Unfortunately they were not aware of the process after recommendation to the minister and are making enquiries with DCMS. The results of those enquiries were not known at the time of writing this report. Cabinet will be updated if the process is known by the time of the Cabinet Meeting. 11.3 It is assumed that once a recommendation is made as to the chosen city, there will be further engagement with the selected city to finalise the details and sign binding agreements before a public announcement is made. If that is the case and Sheffield is selected then a further report will be brought to Cabinet to approve the final terms. The recommendations seek a delegation to allow the Executive Director Place, in consultation, to negotiate with the Department of Culture, Media and Sport on those terms before seeking final Cabinet approval. 11.4 It should be noted that because of the pressing bid deadlines and therefore the need to ‘fast track’ this report, it has been agreed that the appropriate Scrutiny Board will consider the report on the morning of April 28, prior to the meeting of Cabinet.

12. RECOMMENDATIONS

12.1 Cabinet is recommended to: -

(a) to approve the submission by Sheffield City Council of a final stage bid to becomes UK City of Culture 2013; (b) to delegate to the Executive Director Place in consultation with the Cabinet Member for Culture, Sport and Tourism, the Chief

9 Executive, Director of Resources and Deputy Chief Executive all appropriate steps to progress the bid to become UK City of Culture including approval of the final bid content to be submitted to the Department of Culture, Media and Sport; (c) to delegate to the Executive Director Place in consultation with the Cabinet Member for Culture, Sport and Tourism, the Chief Executive, Director of Resources and Deputy Chief Executive authority to negotiate with the Department of Culture, Media and Sport on any necessary arrangements and agreements prior to the future approval by Cabinet of final terms if the city is selected as UK City of Culture; (d) to note that given the extremely tight timescales imposed by the UK City of Culture bidding deadlines, this item of business is being ‘fast-tracked’ and therefore Cabinet’s decision will be capable of implementation immediately; (e) to note the estimated costs and benefits of becoming UK City of Culture and reflects the estimated £3.63M within the Council’s forward financial strategy; (f) to agree that the first phase of the City Council’s UK City of Culture expenditure (i.e. up to £300K from the total of £3.63M) be allocated in the City Council’s budget for 2010/11 and authorise the Executive Director Place in consultation with the Cabinet Member for Culture, Sport and Tourism to finalise the associated programme and its delivery.

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