Report on Heritage Assets to Resources and Governance

Manchester City Council Item 8 Resources and Governance Overview and Scrutiny Committee 17 November 2011

Manchester City Council Report for Resolution

Report to: Resources and Governance Overview and Scrutiny Committee – 17 November 2011

Subject: Heritage Assets

Report of: Deputy Chief Executive (Neighbourhoods) City Treasurer

Summary This report is provided in response to a request from the Audit Committee for further details in respect of heritage assets. It sets out the Council’s approach to heritage assets and specifically how such assets are defined, maintained, monitored and secured.

Recommendations Members are requested to comment on the report.

Wards Affected: All

Contact Officers:

Vicky Rosin Richard Paver Deputy Chief Executive (Neighbourhoods) City Treasurer

0161 234 4051 0161 234 3564 e-mail [email protected] e-mail [email protected]

Background documents (available for public inspection):

The following documents disclose important facts on which the report is based and have been relied upon in preparing the report. Copies of the background documents are available up to 4 years after the date of the meeting. If you would like a copy please contact one of the contact officers above.  Heritage Assets Strategy, May 2011  Statement of Accounts, 2010/11

70 Manchester City Council Item 8 Resources and Governance Overview and Scrutiny Committee 17 November 2011

1.0 Introduction

1.1 At its meeting on 7 July 2011 the Audit Committee considered a report of the City Treasurer, which provided details of the accounting requirements relating to heritage assets. Heritage assets were defined as assets that were held and maintained principally for their contribution to knowledge and culture and could include historical buildings, gallery collections, works of art and civic regalia. There was discussion of the definition and management of heritage assets as opposed to community assets and Members considered that this would benefit from further clarification. The Audit Committee requested that the Resources and Governance Overview and Scrutiny Committee carry out a piece of work on the definition of heritage assets, how the Council keeps track of its assets, the cost of maintenance and the measures in place to ensure the security of assets. This report is produced in response to this request.

2.0 Background

2.1 In defining heritage assets there are a broad range of potential assets that can be considered for inclusion. In a city with a rich history such as Manchester this definition could extend to buildings, monuments, parks, artworks, civic regalia and other collections. Heritage also extends to assets beyond the Council’s control that may be held by public or private sector organisations as well as private individuals or charitable trusts. This report focuses solely on those assets that are managed in the custody of the Council.

2.2 Within the Council alone there are a wide range of assets that are managed across a number of services. Those, such as artworks, are held for the cultural benefit of residents and visitors to the City whereas others, such as the Town Hall Complex, are used primarily as office space and some are a mix of the two. In simple terms the collections and ‘portable’ assets including artworks, rare books and civic regalia are managed by Neighbourhood Services whereas buildings are managed jointly by the Corporate Landlord and the services that occupy these properties.

2.3 Heritage assets are difficult to value, given their historic and cultural significance. They are also, in many cases, unique and irreplaceable. The Council values these assets for two purposes; for financial reporting and for the purposes of obtaining appropriate insurance cover. These are two different purposes so the approach taken, in accordance with standard accounting and insurance practices, results in very different valuations.

2.4 Given the rich heritage of Manchester, the wide range of assets in our custody, the distribution of management arrangements and the mixed use of many of our listed buildings, the approach to heritage assets is complex. This report sets out the key principles and approaches used in defining, managing, maintaining and securing these assets.

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3.0 Definition of Heritage Assets

3.1 Heritage assets are problematic to define simply as there are different definitions and interpretations of what the term includes. Principally these variations are between the definitions adopted by English Heritage and under recognised accounting practices.

3.2 English Heritage state that “there are a number of ways we can protect heritage assets to ensure they are passed onto future generations for their enjoyment. One way is by statutory protection through national designation. Different sorts of heritage asset are protected by different pieces of legislation and forms of protection.” They designate protected assets as a celebration of special interest, intended to ensure that the significance and character of the assets in question are protected through the planning system, to ensure they are passed on to future generations. Their responsibilities and definition applies to built and environmental heritage. They do not have a role with heritage of a ‘portable’ nature such as collections or individual, non-building items of historic or civic importance.

3.3 English Heritage holds a National Heritage List containing the following categories:  Listed Buildings.  Scheduled Monuments.  Protected Wreck Sites.  Registered Parks and Battlefields.  World Heritage Sites.

3.4 Manchester has 84 listed buildings and related assets such as the Town Hall, Central Library, Heaton Hall, bridges and areas of parks. We also have custody of scheduled ancient monuments including the City Centre Hanging Bridge and the moated sites to Clayton Hall and Peel Hall. All of these are included in the Council’s definition of heritage assets.

3.5 The Council has also defined 18 Mancunian assets, which are buildings that are not listed, but are designated under the Council’s Heritage Asset Strategy to be of particular relevance to the heritage of the City. They include the Zion Centre, Heaton Park Boathouse and Queens Park Gallery. These are also included in the Council’s definition of heritage assets.

3.6 In accounting terms, heritage assets is a term that applies more broadly than buildings and includes items of a ‘portable’ nature. These include rare and valuable books, civic and mayoral regalia, statues, artworks and other assets from the galleries collection. They are included within the accounting definition of ‘community assets’ and the accounting values of these assets are reported in the annual Statement of Accounts. The community assets included in the accounts to 31 March 2011 included artworks, civic regalia, monuments, statues, fountains and listed buildings.

3.7 Overall, the Council’s definition of what constitutes a heritage asset as used to inform this report is based on the accounting definition, as assets which have

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historical, artistic, scientific, technological, geographical or environmental qualities that are held and maintained principally for their contribution to knowledge and culture. This encompasses the English Heritage definition but is extended to include the ‘portable’ heritage assets and Mancunian assets as defined above. In summary this covers historical buildings; monuments, statues and fountains; civic regalia; museum and gallery collections; rare and valuable books; and works of art.

4.0 Monitoring and Management of Heritage Assets

4.1 Given the breadth of different heritage assets defined by the Council, there are a range of systems and arrangements for their monitoring and management. The arrangements for property, parks and monuments; and galleries, artworks and collections are set out below.

Property and Buildings Management

4.2 The Council has had a Heritage Assets Strategy since October 2006. This strategy was created to ensure that the Council is recognised as an exemplary owner of heritage assets, and is seen to be leading by example in ensuring the preservation of Manchester’s historic, notable and significant buildings and structures. The strategy has been updated to ensure that it remains relevant and reflects any changes to legislation, planning and conservation guidance. The last full update took place in May 2011.

4.3 Oversight of the strategy is provided by Corporate Property, reporting to the City Treasurer. Monitoring of building conditions and both planned and reactive improvements works are overseen by Corporate Property, the Corporate Property Board, City Treasurer and Executive Member for Finance and HR but all services who occupy buildings contribute to the active management of these assets.

4.4 The Council is the largest owner of listed buildings in Manchester with over 50 buildings in our custody. Within the City’s collection are some exceptional buildings, including the Town Hall complex, Heaton Park with its Grade One house, Platt Hall, City Galleries and a number of buildings within our cemeteries. A significant proportion of these buildings remain operational within the Council’s own portfolio or are leased out to third parties such as 103 Princess Street which is home to the National Labour Museum. Approximately 19% of the listed buildings currently owned by the Council are either Grade Two* or Grade One, this is more than twice the national average.

4.5 Nationally 3% of Grade One and Grade Two* listed buildings are at risk, however in the North West this rises to 5.2% representing 105 sites. Within the 2011 Heritage at Risk Register (published annually by English Heritage) there are seven buildings and three places of worship in Manchester listed which are considered to be at risk. There is one priority site mentioned within the report for Manchester, the Police and Fire Station, London Road, which is subject to a CPO enquiry.

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4.6 Two of the buildings listed as potentially at risk are Heaton Hall West Wing and Victoria Baths, which have had urgent repairs works to secure the fabric of the buildings and the Council is actively working with partners to secure their long term future. This includes a request for grant support to English Heritage in respect of priority works required for Heaton Hall and the establishment of a working group including representatives from the National Trust to explore the possibilities to develop the Hall and surrounding park land. Heritage Lottery Fund remain interested in seeing the Council bring forward a scheme when a viable development opportunity or business case can be made to advance the development of the Hall.

4.7 Some examples of improvements based on the Council’s assessment and monitoring of risks are as follows:

Victoria Baths

4.8 After being closed to the public in 1993, over £4m has been spent on restoring this Grade Two listed building into some publically accessible use. The City Council secured over £3.5m in external funding for the refurbishment project.

Zion Arts Centre

4.9 Listed as a ‘Mancunian Asset’ at risk there has been some significant investment into the Zion Centre to preserve the building and its ongoing use as a community facility.

Hanging Bridge

4.10 An arch of Hanging Bridge was brought into public view by the Council as part of the Cathedral Visitor Centre project in 2002. The bridge is monitored by surveyors of English Heritage to ensure its ongoing preservation and protection. The National Heritage List acknowledges: “The Hanging Bridge immediately south of Manchester Cathedral is a rare survival of a medieval structure in the City centre. It is particularly notable for its context, close to the Cathedral and is related by excavation to the Hanging Ditch and the medieval defences of the town. It survives in good condition and recent refurbishing of the buildings and environment which overlie and surround the monument have brought the remains into prominence as an educational and recreational enhancement for the public”.

Galleries and Collections

4.11 Manchester City Galleries (“MCG”) currently holds 45,315 objects in trust on behalf of the People of Manchester. As shown in table one below the collection comprises 13,063 items of fine art, 10,938 items of decorative art, and 21,656 items of costume. The collection is ‘Designated’ by the Museums, Libraries and Archives Council (“MLA”) as a pre-eminent collection of national and international importance.

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Table 1 - Manchester City Galleries Collection Summary

Fine Art Decorative Art Costume

Paintings 2,183 Furniture 849 Men 2,029

On paper, 3,789 Ceramics 3,995 Women 10,198 unique Prints 5,452 Glass 1,260 Children 2,237

Sculpture 310 Metalwork 1,962 Use/adornment 4,050

Other 1,329 Arms & 409 Textiles 2,314 armour Other 2,463 Other 828

Sub totals 13,063 10,938 21,656

Total 45,315

4.12 The collection is managed and monitored by MCG within Neighbourhood Services. There is a comprehensive inventory management system through which every object has been assigned a unique identification number, referred to as an Accession Number, and each item is recorded in the Galleries Accession Register. For security reasons this is digitised and stored in a fire proof safe. In addition, every item has an individual catalogue record on a computer-based collection management database called Ke EMu. 93% of these records currently meet SPECTRUM standards; a national documentation standard developed in partnership with museum professionals internationally, and recognised as the industry standard for collections management.

4.13 SPECTRUM standards require the following information to be documented:  Number: the assignment of an unique accession number which is recorded on the object.  Location: the assignment to a suitable storage location and the establishment, if necessary, of suitable environmental controls or monitoring.  Condition: a basic check of the item’s condition.  Inventory: the object’s identification number, brief description, previous owner or where it was purchased from and its current value as recorded in MCGs’ Accessions Register.

4.14 MCG use the Ke-EMu collections management system to document all aspects of the collection management process; including accessioning and deaccessioning, condition checking, conservation treatment, incoming and outgoing loans, external movements (shipments), events (exhibitions), location tracking and internal movements, valuations, insurance and indemnity.

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4.15 MCG comprises three sites; Manchester Art Gallery, Platt Hall and Queens Park Conservation Studios. Over 95% of MCG’s collection is currently stored or displayed on these sites. The high value and nationally/internationally significant fine and decorative art collections are stored at Manchester Art Gallery. All costume collections are stored at Platt Hall. Collections of secondary or tertiary significance are stored at Queens Park Conservation Studios.

4.16 Between 2004 and 2007 MCG also developed an inventory of public art and war memorials in the public realm. This information is held digitally, with a supporting paper-based archive of information at Manchester Art Gallery. MCG are currently the central point of contact for all enquiries relating to these heritage assets.

4.17 In addition to the MCG collections, the Libraries, Information and Archives Service holds a collection of rare books, treasures, records and archives that have heritage significance relating to Manchester. These were previously managed and maintained from Central Library. As part of the decant of Central Library to enable the transformation of the Town Hall Complex these items have been temporarily located off site in a secure location and arrangements for their return to use forms part of the transformation programme. The Service also operates the County Records Office on behalf of nine of the Greater Manchester Councils.

Accounting and Finance

4.18 As well as the strategic and operational management of heritage assets by Corporate Property and MCG, there are regular updates of asset registers, inventories and valuations for insurance purposes. These processes require confirmation of asset locations, values and use to help ensure that appropriate insurance cover is maintained.

4.19 Listed buildings, such as the Town Hall Complex are actively used in the delivery of Council services. The classification of these assets is reviewed annually by Finance in producing the Statement of Accounts. In accounting terms they are largely operational assets, are reported as such in the accounts and valued in the same way as other assets of this type.

4.20 For 2011/12 the basis of valuation for heritage assets changes in accordance with the Code of Practice on Local Authority Accounting. This means that heritage assets will need to be reported at current value, where such valuations can be obtained. In order to meet this accounting requirement the Financial Accountancy team are engaging with Corporate Property, MCG and other services as appropriate to ensure that assets are fully identified, recorded and valued in the accounts in accordance with the new standards. It is anticipated that changes in the valuation basis, for artworks alone, will increase the reported net worth of the Council by £300m.

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5.0 Maintenance of Heritage Assets

Property, Buildings and Other Fixed Assets Maintenance

5.1 Planned maintenance and repair programmes are essential for all building assets but due to the nature of the importance, age, construction and complexity of some of our heritage assets, this is based on regular, detailed inspections and condition reports and conservation plans.

5.2 Traditionally, the Council has operated a five year programme of condition surveys on the majority of its property portfolio with conservation plans in place for the major historic buildings such as the Town Hall, Heaton Hall and Wythenshawe Hall. With the introduction of the Corporate Landlord a centralised maintenance programme has been developed with Corporate Technical Services and service departments to ensure that all buildings are compliant with statutory conditions for premises but also to capture the internal assets and their condition leading to the development of a whole life capital replacement programme. Last year almost £600k of revenue was spent on planned preventative and day to day repairs on our listed buildings excluding the Town Hall.

5.3 The Council also has an annual programme of capital repairs, in the past four years since the Asset Management Plan (“AMP”) has been monitored by Corporate Property over £8.8 million has been spent on listed buildings as shown in Table 2 below.

Table 2 – AMP spend 2007-2011

AMP Spend Listed Building £000 Blackley Cemetery Crematorium 98 Central Library 198 City Art Gallery 297 Clayton Hall 130 Didsbury District Library 252 Fletcher Moss Gardens Gallery 116 Harpurhey Baths 6 Heaton Hall 177 Heaton Park Farm Centre, Rose Cottage and Temple 25 Islamic Academy 6 Mackie Mayor 95 Philips Park Cemetery C of E Chapel 140 Philips Park Cemetery Wall 77 Platt Hall Gallery of Costume 1,154 Southern Cemetery CE (North) Chapel 199 Southern Cemetery Entrance Lodge 22

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AMP Spend Listed Building £000 Southern Cemetery Jewish Chapel 38 Southern Cemetery Non-Conformist (West) Chapel 97 Southern Cemetery RC (East) Chapel 25 Town Hall 1,245 Town Hall Extension 3,782 Victoria Baths 19 Wythenshawe Hall 482 Wythenshawe Park Stable Block 205 Total 8,885

Town Hall Complex Transformation

5.4 The Council’s commitment to heritage assets is demonstrated by the £150m investment in the Town Hall Complex Transformation. Both the Town Hall Extension and Central Library are Grade One listed buildings and the programme is designed to support service transformation whilst working with English Heritage to maintain and improve both the buildings and their contents.

5.5 The complex is home to buildings of international architectural significance and works of exceptional quality and craftsmanship. As well as being listed the Town Hall Extension and Central Library have national significance and are among the best examples of the architecture of their period, innovative, sophisticated and constructed to high standards. As part of the Town Hall Complex Transformation Programme, the Council is carrying out extensive works to prepare the complex for many years of civic duty, as well as making progress towards the commitment to reduce our carbon footprint.

5.6 There are some particular aspects of the building such as the former Rates Hall on the ground floor that are of enormous heritage importance and require investment to ensure that heritage is preserved. In addition, the spaces will be showcased to boost civic pride in the complex. The Council has appointed conservation architects (HOK) and is working closely with English Heritage, who are involved in the design development and monitoring construction works on site.

5.7 The transformation includes proposals for the refurbishment and re-use of heritage furniture which is currently in storage whilst building works are in progress. Other heritage furniture and items from the MCG collection are also in use throughout the Town Hall in appropriate public spaces and selected offices and meeting rooms. This helps to maximise the ongoing display and use of the wide range of heritage assets in the Council’s custody.

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Galleries and Collections Conservation

5.8 The MCG collections and any art works in the collection are treated and assessed in the conservation studios at Queens Park by highly specialised, fully trained conservators. MCG currently has specialists in objects, furniture/frames, paintings and works on paper conservation. This work is informed by the SPECTRUM condition surveys and is designed to sustain the collection in conditions required to support its ongoing display and use across the City.

5.9 There are a number of items of furniture, and a small group of decorative arts objects and paintings, on display and in storage at two buildings currently managed by Cultural and Community Services; Wythenshawe Hall and Heaton Hall. With the closure of these two sites to the public, MCG are currently relocating collections from Wythenshawe Hall and, from 19 December 2011, all items will either be at Manchester Art Gallery, Queens Park or Heaton Hall. There will be no collection items at Wythenshawe Hall. This approach is helping to ensure that the collections are closely managed and risks to deterioration can be actively managed.

6.0 Security of Heritage Assets

6.1 Heritage asset security and risks of damage, loss or theft are addressed through the management systems referred to in section four above but there are also specific security and risk management arrangements to protect assets in the Council’s custody.

Property and Buildings Security

6.2 As largely operational premises, heritage buildings are secured in much the same way as other Council buildings. Security measures include controlled building access, on site security, intruder alarms, fire prevention and CCTV.

6.3 In buildings accessible to the general public, contractors and a wide range of staff, such as the Town Hall, there is an inherent risk of theft, loss or damage so additional measures are in place. For example, following vandalism at Wythenshawe Hall, additional security patrols are being established and security cameras have been installed on the roof to protect against further damage, in addition to the existing cameras and alarms.

6.4 The Town Hall is secured through a range of measures which include internal CCTV covering entrances and areas accessible to the public. Additional cameras are in place in areas of higher risk. During the week there is a dedicated security presence provided by G4S responsible for monitoring entrances to the building, and access and exit of people. In addition the guards respond to specific security issues raised by the building's Duty Manager. At weekends and evenings, when the building is specifically open for events only, the security function is covered by the Duty Manager but this is subject to an assessment of risk so additional security is put in place as required to help mitigate any risk to people, the building or its contents.

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6.5 There are a number of sculptures in the main entrance hall at the Town Hall. These are displayed on plinths and are all extremely heavy, would require specialist lifting equipment to be moved and are in sight of both CCTV and security guards.

6.6 Specific additional security arrangements cover mayoral and civic regalia and civic plate in the Town Hall including physical security measures, alarms and safes.

6.7 Many of the heritage furniture assets from the Town Hall Complex are currently in storage pending the completion of the Town Hall Transformation Programme.

Manchester City Galleries Security

6.8 MCG sites are assessed on a three-yearly basis by a MLA-approved security consultant who understands the high level of security required for museum and gallery buildings and collections. MAG was most recently assessed by AXA’s Global Risk Partners and found to be outstanding in all aspects of security on site (building, systems and operation). Queens Park has recently been assessed and, following the sign-off of the report, any significant risks will be actioned by MCG in liaison with Corporate Property. Platt Hall has recently undergone refurbishment, and systems have been upgraded. A further security assessment is due for this site in April 2012.

6.9 All 45,315 objects in MCG’s collections are documented and this helps secure against risks of loss and theft. In addition items within the collection are loaned to other UK and international museums and galleries. Similarly MCG safeguards items on loan from individuals or other museums and galleries (usually as part of the temporary exhibition programme). A robust system is in place to ensure appropriate safeguards are in place. These systems are SPECTRUM compliant and are detailed in the MCG Collection Management Procedures Manual and in specific policy and guidance documents.

6.10 Control over the movement of objects and artwork is a key focus for all staff who work with collections. Movement control is the documentation and management of information concerning the current and past locations of all objects or groups of objects in MCG’s care to ensure that every object can be located at any time. MCG is required to keep up-to-date location records, and all movements must be recorded to provide an audit trail as part of the object’s history.

6.11 To support a rigorous approach to movement control, all designated collection housing areas (stores) are restricted spaces, and nothing can be moved in or out without full compliance with object movement control policy. It is the Senior Registrar’s responsibility to ensure that this procedure is adhered to fully, and any issues identified on an operational basis or during the auditing procedure are referred to Galleries Leadership Team, with any recommendations presented for approval.

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6.12 MCG has a Head of Asset Management and Development who oversees these arrangements and conducts an annual location audit to monitor progress with the planned resolution of object location anomalies, and to provide additional monitoring of compliance with object movement control.

Insurance

6.13 Whilst heritage assets and their value to the City are difficult to quantify in financial terms and whilst arrangements are in place to manage risks, the Council does maintain insurance cover to protect against loss. Whilst any heritage assets would be difficult, if not impossible, to replace these arrangements do at least ensure that potential financial losses to the Council and the people of Manchester would be mitigated.

6.14 The insurance coverage for buildings reflects reinstatement values to ensure that heritage assets could be replaced, as near as possible, on a like for like basis. This protects against perils including fire, flood and terrorism.

6.15 Artworks, mayoral regalia and civic plate, which includes assets on display in the Town Hall, are subject to a separate insurance policy which covers both owned assets and those on loan.

7.0 Conclusion

7.1 Manchester has a rich heritage and from this the Council is a custodian of assets that are of international, national, regional and local importance. There are a wide range of measures to manage, maintain and secure these assets for the benefit of both current and future generations. Whilst budget pressures mean that is not always possible to maintain or display all our heritage assets to the standards we would ideally like, the Council continues to invest and innovate to ensure this heritage is maintained.

8.0 Recommendation

8.1 Members are asked to note the report.

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