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Review of the Future of Kirkgate Market Scrutiny Inquiry Report DRAFT - 27 th April 2011 Review of the Future of Kirkgate Market Scrutiny Inquiry Report Inquiry to Review the Future of Kirkgate Market To be Published May 2011 Introduction and Scope Traders Federation (NMTF) Introduction expressing a range of concerns and 1. At our meeting in June 2010 we agreed seeking the appointment of an to undertake an inquiry to review the experienced Markets Manager, a future of Kirkgate Market. We were rent reduction, a reduction in parking subsequently advised that the Executive charges and immediate Board was to consider a draft market reinvestment. strategy at its meeting on 13 th October 2010. It was proposed that Scrutiny • The subsequent report and decision nd Board (City Development) be invited to of the Executive Board on 22 June comment on the draft strategy in to address some of the concerns September prior to this being expressed by the NMTF. considered by Executive Board. We agreed this approach. • The decision of the Executive Board to ask for a condition survey of 2. In the meantime we arranged for Kirkgate Market and the capital Members of the Board to visit Kirkgate investment that will be required over Market in late August 2010 to meet the short, medium and long term. some of the market traders and be briefed by the Head of City Centre and • The Government’s announcement to Markets on the key issues of concern at cut funding to local authorities and the market. the pressures this will place on all services necessitating a fundamental 3. We were then advised that the market review of all services provided by the strategy report would be delayed and Council. that it would not be presented to the Executive Board until November and we • Members own experience of the would be asked to comment at our strengths and weaknesses of meeting in October 2010. Kirkgate Market. 4. The markets strategy did not materialise • The renewed emphasis to achieve again at our meeting in October 2010 “Value for Money.” and we agreed to proceed with our inquiry and approved terms of reference • The need to establish the views and for our investigation. opinions of shoppers, traders and ratepayers on how they would like to 5. At the time of writing this report; the see Kirkgate Market develop and market traders and ourselves are still how this should be done. waiting publication of any draft strategy 7. It is considered that the scrutiny focus is for the market a delay of over six timely and provides an opportunity to months. consider all the options available for the future of Kirkgate Market and to make 6. The context of and drivers for the inquiry recommendations to the Executive are: Board on this issue. • The deputation to Council on 21 st 8. We are very grateful to everyone April 2010 from the Kirkgate Market branch of the National Market Inquiry to Review the Future of Kirkgate Market To be Published May 2011 Introduction and Scope who gave their time to participate in this inquiry and for their commitment Anticipated Service in helping us to understand and Impact review this matter. 10. We hope that the Scrutiny Board has Scope of the Inquiry contributed to better understanding of the key issues facing Kirkgate Market at 9. The scope of the inquiry was to this critical time. We have made a number of suggestions and • identify the economic and social recommendations to the Executive benefits of Kirkgate Market, the Board which we believe if implemented, current issues and financial would contribute significantly to position of the market. developing a strategy for Kirkgate Market that would build on its success • consider the results of the and enable shoppers to continue to condition survey of Kirkgate experience this unique shopping Market, the capital location for many years to come. investment required in the short, medium and long term and the options available to the Council concerning the future of the market. • contribute to the development of strategy and action plan for Kirkgate Market. • contribute to the development of a strong marketing strategy for Kirkgate Market. • consider the outcome of the independent rent review. • what resources and other support would be required to implement any improvements identified. Inquiry to Review the Future of Kirkgate Market To be Published May 2011 Conclusions and Recommendations the public sector, although 321 (29%) Some Facts and are now run by the private sector. 1 Figures 13. There are currently three common forms 11. We were advised that of market management in the UK: local authority run markets; privately operated • there are a total of over 600 markets; and markets run in some form tenants/traders at our markets of partnership such as a joint venture, or city wide. contracted out operational management. There are also a number of models, • Kirkgate Market alone generates which are not currently common, but direct employment for about offer scope for the future. These are: 2,000 people, not including trader-operated markets; social suppliers, delivery companies, enterprise operated markets; markets etc. run by an arms-length company; and sharing management between a number 2 • In 2009 Kirkgate indoor market of local authorities. The prevalence of had about 10 million visitors, or these models is listed below: 180,000 per week. Ten year ago there were about 12m visitors. (i) Local Authority . This reduction which is a national The majority of markets, like Kirkgate phenomenon at traditional Market, are still directly provided and markets is part of a worrying managed by local authorities. This downward trend which has only model offers the advantage of been bucked by increasing accountability, linking markets to wider footfall on Wednesdays following policy strategic goals, and by the opening of a new specialist understanding the ‘public good’ that Asian themed outdoor market. markets provide. The surplus generated by successful markets are generally • Kirkgate indoor market is one of taken by the local authority and used to the largest in Europe. support other service provision within the authority, which can be at the cost of further reinvestment in markets in • In 2010/11 projected income is general. 3 Bradford City Council recently approximately £4.2m.Expenditure agreed to ringfence the surplus of the and other charges amounts to market for reinvestment, something £2.1m, leaving £2.1m to support which Leeds City Council has also the Council’s budget. previously done. As indicated to Scrutiny previously, the current annual Management and surplus is £2.1m. Ownership Models (ii) Private Many markets are operated directly by 12. Markets are unique in retail and the private sector, either licensed by the wholesale trading terms in that they are local authority under its market rights, still predominantly managed by the public sector; 669 (60%) of traditional 1 ‘Markets 21’, 2010, The Retail Markets Alliance. markets across the country are run by 2 ‘Markets 21’, 2010, The Retail Markets Alliance. 3 ‘Markets 21’, 2010, The Retail Markets Alliance. Inquiry to Review the Future of Kirkgate Market To be Published May 2011 Conclusions and Recommendations with their own charter rights, or in some Private Sector Partnerships. Geraud instances, completely outside the Markets Liverpool Ltd in partnership with licensing framework. This model offers Liverpool City Council runs over 1,200 the advantage of faster, streamlined regular market days each year. In decision making, an increased focus on addition to this there are over 100 the core business, and the opportunity Speciality Event Market days, providing for directly raising investment capital. residents and tourists with access to For example, Town & Country Markets choice, value and quality. Limited is a 100% owned operating subsidiary of Wellington Market (iv)Traders Company and is the leading private There are a number of traditional street sector retail market operator in the markets and farmers’ markets that are United Kingdom. Currently it operates directly managed by the traders markets at 35 locations throughout themselves. This offers the advantage England and Wales from its own of reduced bureaucracy and costs, and freehold premises, leasehold premises an increased sense of ‘ownership’ by and licensed locations providing around the traders. However these are only 5000 stalls each week, at markets from operated as street markets and Aldershot to Morley through to therefore are not comparable to a large Worthing. The company offers money scale indoor market like Kirkgate. This back on faulty goods and holds regular may be a useful model for the fortnightly events and competitions etc to draw in Farmers’ Market at Kirkgate outdoor customers. market. (iii) Partnerships (v) Trust These can range from the local authority Borough Market – the only fully retaining the strategic management of independent market in London – is its markets but outsourcing the owned by a charitable trust, the Borough operational management, to a formal Market (Southwark) Trust, run by a medium to long-term joint venture board of volunteer trustees. According between the public and private sector. to the formal objectives laid out in its These models are useful where the local Charity Commission registration, the authority lacks the in-house resources to trust’s commitments are to provide a effectively manage and promote the market as a public amenity and, once a markets, and/or where external capital year, to pass any surplus to the London investment is required. Geraud Markets Borough of Southwark for the benefit of UK Ltd has worked in partnership with residents in the parish of St Saviour’s. In local authorities over an extended addition to these registered objectives, period of time to develop, expand and the trust has extended its formal invest in markets. The company charitable commitments to include currently runs markets on behalf of running community events, providing Liverpool City Council, Allerdale food related health education and Borough Council, South Derbyshire contributing to local community projects District Council, Clevedon Town and schemes.
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