5 Borough of Sutton

Strategy Committee –23 December 2002

Report of the Executive Head of Leisure Management

SUTTON'S THEATRES

Ward Location: Not Applicable Author(s) and Contact Phone Numbers: Area Served: Borough-Wide Colin Beech, Executive Head of Leisure Management 020 8770 4642 Lead Councillor: Cllr Leslie Coman

Key Decision Report Summary In view of the Sutton Performing Arts Networks (SPAN) (who manage the Council’s two theatres) deteriorating trading position there is an urgent need to determine the Council’s future relationship with this organisation. There is also an opportunity to consider the type of arts and entertainment service it requires; how it can be accommodated and who should manage it. Over the last 5 months the Council has been working closely with SPAN as well as considering how the arts/entertainment service can be managed in the future. Recommendations I recommend the Committee to: (a) Agree that from 1 st April 2003 or earlier if possible, the management and operation of the , and Grove Hall will be the direct responsibility of the Council. (b) [SS1/02 para 7] (c) Agree that the Strategic Director of Environment and Leisure in consultation with the Strategic Director – Resources arranges settlement of SPAN’s outstanding debts with its creditors. (d) Agree that the Council work in partnership with College to undertake a feasibility study covering the areas outlined in this report. (e) Agree that further reports be presented to this Committee on the Arts service, and the results of study outlined in (d) above. (f) Agree a provisional revenue budget of £270,000 to run the services presented in (a) above, for the period April 2003 to March 2004.

1 1. Background 1.1 The has two publicly funded theatres (Secombe Theatre and the Charles Cryer Theatre). These have been managed and operated over the years in various ways, both as an in-house Council service and by external charitable organisations. 1.2 The Secombe Theatre was managed initially by a charitable trust, but in the late 1980’s the Council decided to manage this service as part of its new Leisure Services Department. 1.3 The Council managed the Charles Cryer Theatre and Workshop, when it was initially built. However, since 1 st July 1996 it has been operated by the Sutton Performing Arts Network (SPAN), a charitable trust limited by guarantee. 1.4 On 1 st September 2001 the management of the Secombe Theatre (and Grove Hall) was also transferred to SPAN. 1.5 On 16 th September 2002 this Committee agreed to support the SPAN Board’s decision to close the Secombe Theatre at the end of January 2003, due to their financial difficulties. SPAN had experienced a downturn in audience numbers and level of income, which created a position where they could be trading insolvently, should they continue to manage two theatres. 1.6 On 28 th October 2002 this Committee received a further report outlining the work and support the Council is giving to SPAN. This included the formation of a Steering Group, which has met weekly; a complete review of SPAN’s trading position (including the production of financial projections and cash flow statements); the implementation of a Closure Plan for the Secombe Theatre; operational management expertise and help with promoting the service. 2. Issues A. The Current Position 2.1 Since June 2002 SPAN’s trading position has deteriorated (see exempt Appendix A [SS2/02 para 7]) and they will be insolvent unless they receive financial assistance. This has been brought about by a continued downturn in audience figures (including the Christmas Show); a lower than expected intake of students enrolling on the education programme; inaccurate and optimistic financial planning and risks taken in programming choices by SPAN. 2.2 The Council has been given access by the SPAN Board to the theatres financial data systems. It is clear that they are unable to reverse their financial position or reduce substantially the operating costs (see the ‘Financial Implications’ section of this report). SPAN do not have financial reserves or contingency arrangements, nor do they appear able to trade their way out of these difficulties, due to the nature of the service they provide. Therefore at their Board meeting due to be held on 17 th December they need to decide either to put themselves into administration or to agree to retransfer the business to the Council or to take other action to ensure that they do not trade insolvently. A report on their Board meeting will be made verbally at Strategy Committee. B. Future Service Options

2 2.3 In view of the position that SPAN now find themselves in, the Council should be considering again the type of arts and entertainments service it requires and how it could be accommodated in suitable venues. 2.4 There is also a need to stabilise this service, both financially and by introducing good management principles. The last nine months have seen a fluctuating and at times inert market with programming changes that have not been supported by the local community. 2.5 In order to stabilize and strengthen this service, there is a need to reduce the level of financial risk linked to larger productions and in the shorter-term concentrate on developing the arts education programme and the community/amateur productions/hirers. 2.6 It should be remembered that attendances at regional Theatres have fallen by nearly 13% over the last five years, with performances at arts establishments down by 3%. The Arts Council of England’s National Policy for Theatres in England states. ‘Greater investment in education programmes is needed to encourage audience development’. 2.7 In September 2002, the Council, with assistance from SPAN circulated a questionnaire to existing hirers of the Secombe Theatre, Sutton Arts Council member organisation and other relevant groups/societies. (See Appendix ‘B‘). The aim of this exercise was to determine the level of arts activity in the Borough and future requirements. (Twenty-two responses have been received). 2.8 A summary of the findings is outlined in Appendix ‘B‘. It is clear that the Secombe Theatre is an important venue and many groups rely on the Council’s equipment and box office facilities when staging performances. The societies/theatre group produce over 30 productions each year. C. Arts Venues 2.9 The Council has a number of options available when it considers the possible major arts/entertainment venues in the Borough: (i) The Secombe Theatre 2.10 Whilst this venue is centrally located with good public transport links, it is a converted church with an outdated appearance and image. Without raked seating and the creation of a more contemporary environment, there can be no longterm future for this venue as the public’s expectations are constantly rising. The theatre needs a substantial investment programme to create a venue that would appeal to the wider community. (ii) Charles Cryer Theatre/Workshop 2.11 The theatre provides an ideal venue and workshop facility for smaller scale productions and in-house student work as part of an education programme. It is however unable to accommodate large-scale shows and the audience numbers are restricted due to the seating availability (up to 100). (iii) Wallington Hall 2.12 This venue is already utilised by a wide cross section of the community. In 2001/02 it was booked on over 400 occasions for wedding receptions, parties, shows, pre- school groups and for sporting activities. This venue lacks raked seating and

3 internally is very outdated (with poor acoustics) and would need a significant investment programme if it were to become a major arts/entertainments venue.

(iv) Local School Halls 2.13 Whilst the majority of senior schools in the Borough, see Appendix ‘C‘ have halls and stage facilities, they are not purpose built for community access. They would need to be used on a daily basis by the school so weeklong hirers could not be accommodated. Acoustic problems, lack of lighting/technical equipment and space to accommodate it, together with the lack of a box office and car parking facilities rule out this possible option. The Sutton Arts Council has also indicated that their member societies would not want to use school sites due to the constraints highlighted previously. (v) A New Venue 2.14 Carshalton College and the Council have been exploring the possibility of working together to provide new leisure facilities (including a theatre) on their existing site. If constructed the new facility could provide accommodation for both education and community use. Discussions with the college are at the preliminary stage. However, before the Council commits itself fully to the ideas proposed there is a need to undertake a feasibility study to determine: − The needs and demand for new leisure facilities (including a theatre) − Proposed schedule of accommodation − Capital costs − Funding options available − Management considerations − An operations/business plan (including revenue estimates) − The future of the Charles Cryer Theatre The results of this study will be presented to this Committee, if a way forward can be agreed with Carshalton College. D. Management Options 2.15 The Council has a number of options available (including bringing the service back in- house) when considering who should manage the direct service provision for arts/entertainment in the Borough. The Charles Cryer Theatre and The Secombe Theatre 2.16 SPAN has prepared a Business Plan for the period 2003/04 outlining how they would manage the Charles Cryer Theatre, Grove Hall and Education Programme. The Council has analysed this plan and evaluated the assumptions and financial data produced. It has concluded that the plan is not robust and exposes the organisation to financial risk. . 2.17 SPAN has been unable to successfully incorporate the management of the Secombe Theatre into their existing portfolio of services, due to the reasons outlined earlier in

4 this report. SPAN however, is keen to manage the theatre again, if their existing financial debts are covered by the Council. Indeed they have submitted to the Council their proposals outlining how they could manage both the Secombe Theatre and the Charles Cryer Theatre. 2.18 In view of the management, financial and operational difficulties that SPAN has experienced this year it is believed that this organisation should not be considered as a future management option should the Secombe Theatre remain open. 2.19 The Sutton Arts Council (SAC) has also submitted their Business Plan explaining how they could manage the Secombe Theatre. They have proposed that a charitable company be formed, limited by guarantee, to manage this service (see exempt Appendix ‘D‘ [SS3/02 para 7 ]. 2.20 The proposal from the Sutton Arts Council is believed to be well thought out and reflects a commitment from a body that is keen to provide a good service to the public. A great many enthusiastic and knowledgeable individuals have emerged from this organisation and they could make an extremely important contributors to the future management of this theatre. 2.21 The proposal from SAC is based on sound financial and operating principles/assumptions, although there is little room for financial error in a fluctuating market. However, if the objective is to stabilise the service, this option does create a financial risk to both the Council and SAC. 2.22 It is highly unlikely that a private organisation would want to manage the Council’s theatres, due to the limited seating capacity, a status unable to attract larger shows and potential to generate an attractive financial return. 2.23 Other not for profit organisations could have the experience to manage the theatres but again they are at risk of failure in a volatile market place. The Way Forward 2.24 It is clear that SPAN cannot continue to trade as their debts are mounting and they have not shown that they can retrieve the position. It is therefore proposed that, dependent on SPAN’s Board decision on the 17 th December, the Council work with SPAN on a phased programme of retransferring the management and staff of SPAN back to this authority (including Grove Hall) by 31 st March 2003. The Council will then have direct responsibilities for the management of the Charles Cryer Theatre, Secombe Threatre and Grove Hall. 2.25 The theatres will in future be used for community/amateur productions, an arts education programme, conferences and general hirers. The venues will not be open at other times, in order to reduce operating costs. By adopting this programming policy, it is hoped that large financial risks on shows can be eliminated, thus stabilising the service. In the next 12 months very few, if any, professional productions will be staged, as a result. 2.26 The SPAN Board met on 17 th December 2002 to consider the proposals outlined in this report and to deliberate their future. The outcome of these discussions will be presented to this Committee, at the meeting. 2.27 Carshalton College, who coordinate the education programme for SPAN is in agreement (in principle) to the proposal presented and the way forward for the theatres. They are keen to work with the Council to develop the education activities and enhance the profile of this service.

5 2.28 The Council do not want to lose the contribution and local expertise from organisations such as the Sutton Arts Council and SPAN. Committed and enthusiastic volunteers and casual staff will be needed to help run the theatres and every effort to involve them as part of an advisory group. 2.29 SPAN’s total debts for the trading year 2002/03 (over and above the grant paid by the Council) are set out in exempt Appendix A [SS2/02 para 7]. It will be necessary for the Council to pay off this outstanding sum before the service returns to the Council. 2.30 During the next few months it is hoped that the Council, with Carshalton College, can complete a feasibility study looking at arts/entertainment provision in the borough (as outlined in paragraph 2.14 of this report). Once this piece of work is completed, the Council will be in a much better position to determine the level of arts provision needed, as well as the financial implications. 2.31 The Council’s Scrutiny Co-Ordinating Committee will be considering, over the next few months, the lessons learned and the issues that have been raised over the failure of this service. 3. Legal Implications

3.1 SPAN currently hold the residue of a 10 years lease of Secombe Theatre, which the Council can terminate at anytime on three months notice. Their lease of Grove Hall runs only until 30th June 2004 and is similarly terminable. SPAN's lease of Charles Cryer Theatre expired on 30th June 1999 and although no renewal of that lease has been completed, SPAN have been allowed to remain in occupation. To achieve a retransfer of each of the theatres back to the Council from 1st April 2003, it will be necessary to:

3.1.1 Serve notice (by 31st December 2002) bringing the Secombe and Grove Hall leases to an end by 31st March 2003; and 3.1.2 Take all necessary steps to ensure that SPAN surrender their occupation of Charles Cryer by 1st April 2003. 3.1.3 Or agree with SPAN to vary the existing agreement to allow a retransfer of the business to the Council on or before the 1 st April 2003.

3.2 Although it has been recommended that the Council underwrite SPAN's existing known debt, care will need to be taken to ensure that the Council do not inherit from SPAN any unauthorised additional liabilities or contractual commitments when it takes back direct management of these Theatres on 1st April next. Existing suppliers and other potential creditors of SPAN should be alerted to the pending transfer of management and warned that the Council will not take responsibility for additional contractual liabilities unless these have been previously sanctioned by the Council. Should the recommendations be agreed officers will take action to ensure this happens.

4. Financial Implications Group Finance Comments 4.1. Environment & Leisure finance and Internal Audit have been working closely with SPAN since the end of July 2002, with the intention of providing a realistic financial position for both SPAN and the London Borough of Sutton.

6 4.2. The existing grant available to SPAN from the LBS for the running of the Secombe Theatre, Charles Cryer Theatre, The Grove and the Education programme for 2002/03 is £300,000. Due to the cash flow difficulties experienced this year by SPAN, advance payments of this grant have been made for both the 3 rd & 4 th quarters. The final remaining £40,000 instalment of the £300,000 grant has just been paid to SPAN. 4.3. In 2.1 of this report, reference is made to Appendix A [exempt]. This is the latest cash flow position of SPAN, including actual expenditure up to the end of November 2002. . This Appendix shows the expected deficit at the end of March 2003. In addition the Council will be incurring further temporary staffing costs of approximately £20,000 to take over the interim management and to meet the costs of the investigation. 4.4. In the calculation of this cash flow a number of assumptions have had to be made in the absence of actual data. These assumptions and the detailed financial comments are set out in exempt Appendix E [SS4/02 para 7]. 5. Influence of the Council’s Core Values 5.1 Partnership To successfully manage the arts/entertainments service requires a high level of partnership working. Major partners would include Carshalton College and Sutton Arts Council. 5.2 Involvement in Council’s Decision Making The arts community in Sutton have responded well to requests for information and other input into corporate reports, strategies and documents in a timely and enthusiastic way. 5.3 Accessibility The future for arts in Sutton will be linked to harnessing and supporting initiatives emerging from local groups and individuals; as well as encouraging community representation on local committees and decision-making bodies. 5.4 High Quality/Cost Effective/Meeting Community in a Changing Environment The service is committed to improving the quality of service and identifying the needs of the local catchment through questionnaires, complaints procedure, the Investors in People process, quality assurance mechanisms, the Education Programme and the associated inspections. 5.5 Equality The service has embedded the Council’s policy in relation to employment and service provision and has worked and consulted with many of the borough’s relevant agencies, in this respect. 5.6 Investing Wisely for the Future One of the greatest thrusts is to invest in the Arts Education Programme which is believed will encourage audience development. 5.7 Staff The service is working towards gaining Investors in People in 2003, which sets out the processes in which staff are involved in decision making, communications and 7 understanding how the service works towards the Unit’s and Council’s corporate goals. 6. Contribution to the Achievement of the Council’s Policy Aims 6.1 Improving Local Democracy This is undertaken by the development of the Education Programme in drama and theatre as well as working closely with representatives and organisations from Sutton Arts Council. 6.2 Promoting Local Regeneration The service is committed to developing and promoting cultural and educational services by attracting additional funding for new developments and education funding sources. 6.3 Achieving Environmental Sustainability The service has signed up to the Council’s environmental policies. 6.4 Increasing Opportunities for Young People This service has always been particularly active in seeking the involvement of young people in many of the programmes and shows available. 6.5 Achieving Social Inclusion The service has actively participated in encouraging participating by people on low incomes through free tuition and ticket concessions. 7. Background Papers Strategy Committee Report 16 th September 2002 Strategy Committee Report 28 th October 2002 SPAN file 8, 9 & 10 SPAN Business Plan (Charles Cryer Theatre 2003/04) Sutton Arts Council Proposal and Business Plan – Secombe Theatre 2003/04 SPAN Accounts 2002/03 Questionnaire – Theatre Groups 2002

16dec1.doc cb/jj 16/12/02

Document2 V2.03

8 APPENDIX ‘B’ QUESTIONNAIRE RESULTS SUTTON ARTS COUNCIL – INFORMATION 1. What organisation do you represent? See Attached (22 organisations responded) 2. Please give examples of the drama or arts events organised by your organisation in the last two years. See Attached. 3. In the course of a year, approximately how many events do you organise? 1 4 2-5 10 5-10 2 More than 10 1 Other 1 Depends on demand Every two Years 4. Venues a. What venues do you use? b. Approximately, what is the capacity of thie venue? c. On average, what attendances do you get? Please give information on any venues you use. Secombe Theatre 14 Charles Cryer 5 Adrian Mann 3 Epsom Playhouse 2 Overton Grange, St Andrew’s Church, Christ Church Sutton, Wallington Methodist, Carshalton Girls, Wallington Public Hall, Parochial Rooms , Rosehill CA, St Helier CA, Hill House, Logan Hall, Pollards Hill CA, Merton Hall, Wimbledon Theatre – 1 each. 5. Does your organisation operate from the Londdon Borough of Sutton? Yes 16 No 2 If not, from where to do you operate? Wimbledon Tolworth 6. Do you own your own equipment (tables, chairs, lighting, technical equipment etc)? We own all our equipment 1 We own some of our equipment 9 9 We don’t own equipment 8 7. How do you organise your box office? Through Sutton theatres 13 Own box office 7 Programmes at door 2 Company sales, school, telephone 1 each Do you have a particular target audience? Yes 10 No 7 If yes, what is your target audience? Parents, friends and relatives of performers 4 Families and younger people, public at large, senior citizens, schools and charities – 1 each 8. What plans does your organisation have for the future? See Attached 9. Do you have any further information that you can give us? (See Attached)

10 APPENDIX ‘B’ continued Organisations and Examples of Productions Organisation Productions (total attendance) Sutton Puppet Theatre Millennium Puppet Festival (500) Sutton Amateur Dramatic Club Bedroom Farce – Alan Ayckbourn (352) Royal Baccarat Scandal – Royce Ryton (257) Brighton Beach Memoirs – Neil Simon (170) Sutton Theatre Company Me and My Girl (1,800+) The Melody Lingers On (1,800+) Carousel (1,800+) Ashley School of Theatre Dance In the Spotlight (720) Sutton Youth Music Supporters Assoc 4 Concerts a term (700) Doris Holford Stage School Twinkling Stars (400) Wimbledon Light Opera Society Carmen Fiddler on the Roof Mikado Sweet Charity The Torch Players Crown Matrimonial (484) Hay Fever (819) Black Coffee (1,071) I Remember Mama (460) 3 concerts (300 approx) Willow School of Dance Dance Show (800) Croft Drama Group/Capricorn Theatre Bouncers/Shafters (200) Company Festival Entries Charlie and the Chocolate Factory (7-800) Babe – The Sheep Pic (4 – 500) The Witches (600) The BFG (4 – 500) The Lyric Players Kiss Me Kate (905) A Little Nigh Music (360) Pirates of Penzance (940) On the 20 th Century (330) The Suttoners Canterbury Tales (600) St John’s Players, Belmont Suddenly at Home – Francis Durbridge (600) Food and Drink (70) Carshalton Pantomime Company Ali Baba (4,750) Peter Pan (5,700) Individual Sutton Music Festival (800 – 950) Mayhem Productions A Little Light Music (250) Oklahoma (400) Fiddler on the Roof (500) Bye Bye Birdie (250) Guys and Dolls (500) Into the Woods (350) Wallington Operatic and Dramatic Society Revue Follies Musical (1,300) Abigail’s Party (550) Oklahoma (1,400) Living Together Nemcom Theatre Company Various 11 APPENDIX ‘B’ continued

Notes

All but four of the respondents put on five or fewer events each year. The results show a common pattern of provision among the respondents. The most commonly used venue is clearly Secombe Theatre, which 14 of the respondents use. Charles Cryer (5), Adrian Mann (3) and Epsom Playhouse (2) follow this. As a measure of the breadth of provision in the borough the respondents named a further 14 venues in use. The attendances attracted to events are given in the table in appendix two.

All but two of the respondents run from the London Borough of Sutton. The exceptions are Wimbledon (1) and Tolworth (1).

There is clearly a pool of theatrical and dramatic equipment floating around the borough. Only one respondent said that their organisation owns all its equipment. The rest are divided between those that own some equipment (9) and those that own none (8). Some scope for co-operation exists between organisations here, unless it already exists.

Box office arrangements rely heavily on the existing box offices at Sutton theatres especially Secombe Theatre. Some organisations make their own arrangements while others co-operate with the Sutton theatres to do this.

All residents did not understand the question about target audiences in the same way. Some thought it meant a numerical target. We were trying to find out if organisations targeted particular sections of the community. Nevertheless we are able to learn that four organisations limit their targeting to parents, friends and relatives of the performers.

12 Survey of Sutton Secondary Schools APPENDIX ‘C’ Drama Production Capacity School Name Size of Hall Stage Curtain Lighting Seating Parking Capacity Public Toilets Comments Access Carshalton Boys 250 Yes Yes Yes 200/250 Playground only Good Yes No tapdancing Carshalton Girls 428 include stage Yes Yes Yes 400 80 Good Yes Cheam High School 313 include stage Yes Yes Yes 300/350 sm car park + pl grnd Good Yes No parking midweek Greenshaw 265 Yes Yes Yes 600 sm staff car prk Good Yes Booked until end of March Nonsuch 285 Yes Yes Yes 350 40/50 Good Yes Already let Sat & Sun Overton 298 No* No Yes 250 80/100 Good Yes St Philomena’s 593 Yes Yes Yes 1000+ sm car park/plground Good Yes They don’t hire hall out Stanley Park 223 Yes No Yes 200 sm staff car park Good Yes Sutton Grammar 225 Yes No Yes 200 70 Good Yes They don’t hire hall out John Fisher 248 include stage Yes Yes Yes 200 stff car park/plground Good Yes They don’t’ hire hall out Wallington County Grammar 273 include stage Yes Yes Yes 200 car park Good Yes Wallington High School for Girls 277 Yes Yes Yes n/k n/k Good Yes Wilson’s School 346 Yes Yes Yes 450 n/k Good Wallington Hall 350/400 no chairs Yes Yes Yes 240/350 pay display 80 Good Yes *Overton have no stage – can build one from blocks. #Cheam High use hall for evening classes.

13

14