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1 London Borough of Sutton Strategy Committee –23 December 2002

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1 London Borough of Sutton Strategy Committee –23 December 2002 5 London 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 Secombe Theatre, Charles Cryer Theatre 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 Carshalton 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 London Borough of Sutton 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.
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