Agenda item 8

Cheltenham Borough Council Social and Overview & Scrutiny Committee – 7 September 2009

Report from Chief Executive, Festivals

1. Introduction

The Report focuses on Cheltenham Festivals’ use of the second tranche of LABGI funding of £150,000 and the results of its activities to achieve a sustainable organisation that contributes substantially to the local economy of Cheltenham. It also covers the agreed use of LABGI funding in terms of education and outreach developments and plans for future development of the Town Hall. The report contains background information on the separation of Festivals from the Council which gave rise to the LABGI support in the first place.

2. Background

The LABGI funding was granted to Cheltenham Festivals following the separation of the Festivals from the Council which was finalised in April 2006. Prior to that date, the Festivals had paid a nominal sum of £21,000 for the use of venues, were granted free use of box- office, a part-time chief executive (Jeremy Tyndall) a part-time administrator and marketing support which was paid for by the Council. In addition, the Festivals received a small cash grant of £35,000 and other in-kind support such as IT, finance and payroll.

Since 2006 the Festivals have been through a period of enormous change. The separation agreement drawn up in 2005 contained a four-year withdrawal of £150,000 of CBC subsidy which was in future to be paid by the Festivals to the Council for venue and box-office use. In turn, CBC provided an increased cash grant of £109,000 per annum to assist Cheltenham Festivals in obtaining its own marketing and finance staff and a one-off infrastructure grant of £500,000 from LABGI funding was confirmed in 2006 to enable the Festivals to develop the necessary infrastructure to grow so that it could meet the subsidy reductions. In addition, the Festivals lost the provision of the part-time chief executive and part-time administrator and these savings were returned to the Council as no cash replacement was given to Festivals. The in-kind value of these posts to the Festivals was valued by CBC at £70,000 pa. Thus, the total subsidy reduction to the Festivals after 4 years was £220,000 per annum. The Festivals now pay £171,000 to the Borough Council for the use of the Box Office and for venue hire.

In addition, the Council continues to provide valuable in-kind support to the Festivals as follows.

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Service 2007 2008 £ £ Box Office Fees 54,000 94,765 Venue Hire subsidy 32,000 22,622 Financial Services provision 12,000 10,800 ICT Services 21,000 61,000 Telecommunications 0 5,300 Payroll Services 12,000 6,400 Accommodation 3,000 0 Social & Community Directorate 6,000 0 Hire of Gardens 0 11,150 Pennant Display 0 19,500 Total 140,000 231,537

Note: The box office subsidy to CF for 2008 has been calculated by the Borough Council as 65% of the total cost to CBC of running the box office less the amount paid by CF. This is based on the fact that 65% of the tickets sold by the box office are for CF. This equates to 12.5% of CF’s ticket sales.

3. Developing a sustainable organisation – use of LABGI Funding

The Company’s trading performance in 2008 showed a deficit of £24,516. £22,335 of this relates to LABGI expenditure in the year of £172,335 against the 2nd tranche payment of £150,000. The results show that the investment through LABGI is helping Cheltenham Festivals to be on track to be a financially sustainable organisation despite the fact that the Company is making increased contributions to CBC as part of the subsidy reductions. This can be seen from the comparison of 2008 to 2007 of income from CBC to expenditure as follows:-

2007 2008 £ £ Core Grant 109,200 109,200 LABGI 250,000 150,000

Total Income 359,200 259,200

Payments Box Office & Venue Hire 85,000 170,465

Total Net Income 274,200 89,035

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For the Festival’s financial year January 2008 to December 2008, the organisation used £172,335 of the LABGI grant which, together with the expenditure in 2007 of £147,744 brings the total expenditure to the end of December 2008 to £320,079. £400,000 of LABGI funding has been received by Cheltenham Festivals for the 2 years to December 2008, meaning a surplus of £79,921 has been carried forward for planned expenditure in 2009.

The £172,335 in 2008 has been expended on the following priorities:-

1. Completing the office move to Bath Road (Franking Machines/Photocopiers) 2. Appointment of permanent PA for Chief Executive 3. Continued investment in Website Manager to improve the look and feel of our website, development of e-newsletters and development of membership capability on line. 4. Continued investment in Fundraising staff outlined the previous year through each Festival having a dedicated fundraiser and also a part-time Legacy Officer. 5. Appointment of Membership Manager to implement the membership scheme and to attract new customers to secure new revenue streams. 6. Investment in Sales and Marketing resource through fixed term contract for Director of Strategic Planning as well as full time appointment of Marketing assistant. 7. Continued investment in Raiser’s Edge – fund raising software package. 8. Strengthening of Finance Department through use of external consultant to help with strategic planning process. Also advertisement for new Director of Finance to take post in 2009. 9. Investment in enhanced Festival production through freelance Production Manager in 2008. The decision was taken to make this a permanent position with effect from January 2009. 10. Improved staff training. 11. Increased activity in Outreach and community work – see 4 below.

One of the key planks of the Cheltenham Festivals’ business plan is the development of a membership scheme. The long-term aim is to attract some 10,000 members but in the medium term our goal is 5,000 members generating in excess of £120,000 per annum. Development of this scheme has been severely hampered by the failure of the Festivals and Borough Council to work in partnership on the procurement of a new box office system and this has put a major income stream for the Festivals at some risk.

Tables showing growth in box office and sponsorship as well as income and expenditure analysis are shown overleaf.

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Sponsorship and Box Office Income 2007 and 2008 and Tickets Sold

Sponsorship Income 2007 & 2008

£450,000 £400,000 £350,000 £300,000 £250,000 2007 £200,000 2008

Income £150,000 £100,000 £50,000 £0 JF SF MF LF General a/c Festivals

Box Office Income 2007 & 2008

800,000 700,000 600,000 500,000 2007 400,000 2008 300,000

No of Tickets No 200,000 100,000 0 JF SF MF LF Festivals

2009_09_07_SOC_8a_Cheltenham Festivals4 Number of Tickets Sold 2007 & 2008

120,000

100,000

80,000 2007 60,000 2008 40,000

20,000 No of ticketsNo sold

0 JF SF MF LF Festivals

Sources Of Income

Income 2008 - £3,200,734

38% Box office £109,200£96,176 £150,000 £1,227,416 38% Sponsorship, donations & £178,361 misc. grants 7% CBC In-kind £231,537 6% Arts Council grant

5% CBC infrastructure LABGI grant 3% CBC cash grant

£1,208,044 3% Other misc.income

2009_09_07_SOC_8a_Cheltenham Festivals5 Income 2007 - £2,910,896

£68,812 35% Box office £109,200 £1,038,491 £250,000 40% Sponsorship, donations & misc. grants £173,672 5% CBC In-kind

£140,224 6% Arts Council grant

9% CBC infrastructure LABGI grant 4% CBC cash grant

2% Other misc.income £1,130,497

Expenditure

Expenditure 2008 - £3,230,400

£170,465 £172,335 £1,380,542 43% Programme £266,562

25% Fees & salaries

13% Marketing & sponsorship

£422,675 9% Administration

5% LABGI spend

5% CBC box office and venue hire charged £817,821

2009_09_07_SOC_8a_Cheltenham Festivals6 Expenditure 2007 - £2,818,496

£85,000 £147,744

£241,123 45% Programme £1,267,956

26% Fees & Salaries

£333,578 12% Marketing & sponsorship

9% Administration

5% LABGI spend

3% CBC box office and venue £743,095 hire charged

4. Outreach and Education Work

During 2008, we focused on consolidating our partnerships with schools and delivering a number of quality schools and community projects throughout the year. We have focused on providing a limited number of quality projects and now find that demand often outstrips our ability to supply. We aim to produce projects of substance and depth that balance learning with the opportunity for participants to experiment, explore new horizons and develop their imagination. The programme reached over 11,000 participants within and outside the county.

Jazz It Up! May 3 - 4 This celebration of schools’ lively jazz scene saw eleven bands take to the stage for two afternoons of energetic performances. Our compere for the performances was the well-known actor, Colin Salmon, who regaled the teenagers with tales of how he had started playing the cornet in the Salvation Army. The Jazz Festival marquee was bursting at the seams as a capacity crowd enjoyed every jazz style from big band and boogie woogie to soul, blues, and funk. Each band performed a James Bond theme, specially arranged for them by jazz pianist and composer Dave Stapleton, to mark author Ian Fleming’s centenary.

Participating schools We were particularly pleased that the project attracted two schools which had not previously participated.* Balcarras Cheltenham Bournside

2009_09_07_SOC_8a_Cheltenham Festivals7 Cleeve *Farmor’s Marling Pate’s (junior and senior bands) *Rednock St Peter’s

Science Festival Schools’ Programme June 4 - 6 “In an era of dumbed-down education, this was an oasis of scientific stimulation!” Stan Labovitch, Heathlands School, Hounslow

More than 6000 pupils and their teachers attended the Science Festival during our three-day programme of special events for schools, sponsored by British Energy. From large-scale science happenings on the stage in the 550-seat arena to more intimate, hands-on workshops in the Experitent. This year’s events featured everything from nitrogen ice- cream, chemical clocks and live snakes to gigantic telescopes and the world’s loudest bursting balloon. Most of our visiting schools also took advantage of a fascinating free hour in our dynamic Discover Zone, which this year featured 25 different exhibitors, all keen to inspire children about science through a wealth of interactive activities.

Creative Minds Project-Sleeping and Dreaming May - June and September - October This fascinating cross-festivals project took place in the weeks preceding the Science Festival, and again before the Literature Festival in September. In May, artist and scientist Dr Lizzie Burns visited community groups in the Cheltenham and Gloucester area, talking to them about the science of sleep and encouraging them to share their own experiences of sleeping and dreaming. Participants decorated a mask to represent their own dreams, and these were exhibited at the Science Festival. In September, poet Brenda Read-Brown revisited some of these groups and some new participants, including a night nurse at Cheltenham General Hospital and new mums at a local Bumps and Babes group. In these sessions participants talked about their experiences of sleeping and dreaming, and Brenda helped them to write original poetry inspired by their discussions. These poems and the decorated masks were exhibited at the Literature Festival. This project was made possible through the generous support of the Wellcome Trust.

Participants Battledown Ward (Cheltenham General Hospital) Cheltenham NCT Bumps and Babes Cheltenham Health and Social Care Centre Gloucestershire Mandarin School Hester’s Way Children’s Centre Kidzone After-school Club Night-shift Nurse Parents at Whaddon Children’s Centre Prestbury Memorial Trust Sandford School

2009_09_07_SOC_8a_Cheltenham Festivals8 St Andrew’s Church Coffee Morning The Black Elders’ Day Centre and Luncheon Club Tredworth Primary School

Time to Sing June - July I was overwhelmed with the fantastic sound that the children produced - wonderful! Parent, School

2008 saw our most ambitious singing project so far, culminating in a wonderful evening concert which brought 263 excited pupils to the main stage at the Town Hall. Supported by Sing Up, the government sponsored initiative to encourage singing in primary schools, Time to Sing brought 240 children from eight different Gloucestershire primary schools together to celebrate our rich heritage of traditional folk-based songs. Rarely-heard gems such as the Portland Quarry Song, the haunting notes of the Skye Boat Song, and the rollicking comedy of Whose Pigs are These? were just a few of the highlights of a memorable evening. Months of intensive singing workshops and rehearsals, led by singing teachers Liz Terry and Rachel Gay meant a demanding schedule for all the teachers and pupils involved, as they learnt harmonies, rounds and part-singing and grappled with tongue-twisting lyrics and hard-to-reach high notes. All this hard work paid off handsomely, however, and both the quality of the singing and the exuberance of the performance were truly remarkable.

Participating primary schools Christ Church C of E, Chalford Coalway Juniors, Coleford Fairford C of E Rowanfield Juniors, Cheltenham Sheepscombe Siddington C of E Stratton C of E Woodmancote

Festival Academy and The 15-16 July Led by charismatic young conductor and educator Will Carslake, young musicians from the Festival Academy spent two days working with students at the National Star College, a specialist centre for young adults with acquired brain injuries and associated learning difficulties. This project culminated in a spirited performance of The Boy Who Cried Wolf in which music, drama and powerful narrative were woven together. This was the fourth year of our collaboration with the Star College, which has proved immensely rewarding for all those involved.

Our ongoing partnership with Cheltenham Music Festival and the Festival Academy, through these wonderful creative workshops, inspires and motivates our students. Paul Tarling, Performing Arts Co-ordinator, National Star College

Tunde and Finn June

2009_09_07_SOC_8a_Cheltenham Festivals9 A highly gifted and versatile young musician, Tunde Jegede is a composer and performer whose work spans the musical spectrum from classical to hip hop, soul to opera. HKB Finn is a spoken word artist, producer and jazz musician.

Tunde and Finn led workshops over three days in late June at Beaufort Community School in Gloucester, which has an impressive Performing Arts department and associated facilities. They also joined the Advanced Strings group at the of Music for an evening workshop of creative musicianship. As well as hosting the workshops, Beaufort School provided their theatre and access to their large collection of percussion instruments, enabling 150 pupils to enjoy some very creative ways into making music.

Participants Gloucester Academy of Music Beaufort Community School Grange primary Harewood primary

Cheltenham Festivals Gamelan Many schools and community groups took advantage of our year-round programme of gamelan workshops which are held at the . In 2008 over 1000 children and adults took part in these workshops, which are led by Jonathan Roberts, a professional gamelan teacher who trained in Java, Indonesia. The gamelan even went on tour! In April it was moved to Farmor’s School in Fairford for a week’s residency. In partnership with Good Vibrations, the gamelan also visited HMP Eastwood Park for a programme of intensive workshops with prisoners during the Music Festival. The week culminated in a small concert in the prison when the prisoners and Cheltenham Community Gamelan Players performed together.

Book It! for Schools 10 - 17 October This is our favourite trip of the year. If we lived closer we would come every day! Jo Ferris, Holy Trinity School, Kidderminster

Book It! featured a packed programme of top authors this year including a brace of ex- Children’s Laureates (Anne Fine and Michael Morpurgo) and some of our best-loved children’s illustrators (Nick Butterworth and Tony Ross). Julia Donaldson brought her hilarious Gruffalo show to town, and Caroline Lawrence let us in on the mysteries of writing crime fiction set in Ancient Rome. Over 5000 school children and their teachers attended over six days of events.

Young Writers’ Day 17 October

2009_09_07_SOC_8a_Cheltenham Festivals10 This has had a very beneficial effect on my teaching. Since attending the gifted and talented writers’ day, I have used Vivian’s techniques in my own classroom. The children thought the day was wonderful and inspiring. Glyn Jones, Greatfield Park Primary School, Cheltenham

Our first ever event for gifted and talented children was hosted by Cheltenham College Junior School and attended by year 5 and 6 pupils from seven different Cheltenham schools. This small group of 30 children and their teachers spent the day with author Vivian French, immersing themselves in the creative writing process.

Participating schools Cheltenham College Junior School, a private prep school, 5 pupils Greatfield Park, a state primary school in Cheltenham with a mixed social intake, 4 pupils Prestbury St Mary’s Junior School, a state primary school just outside the centre of Cheltenham, with a mixed social intake, 5 pupils Christ Church C of E Primary School, a Cheltenham state primary school with a mixed social intake, 5 pupils St Marks C of E Primary School, a state primary school in an area of social deprivation in Cheltenham, 5 pupils The Catholic School of St Gregory the Great, a state primary school in the centre of Cheltenham with a mixed intake including many Polish children, 2 pupils Berkhampstead School, a private prep school in Pittville, Cheltenham, 4 pupils

The Play’s the Thing - a Shakespeare Project for Schools September-October 2008 This year saw our third school Shakespeare project tackle Hamlet, with its dark themes of love and loss, madness and revenge. Hosted by , this project brought Pittville’s cluster primary schools together for a series of workshops for year 6 children, led by actor and director Fiona Ross. Each school prepared a ten minute piece of drama based on a theme or character in the play, for a performance at Pittville School on 15 October. As always, the children surprised the audience with the variety and power of their interpretations. From Lynworth primary school’s hilarious analysis of Hamlet and Ophelia’s relationship in The Jeremy Vyle Show, to the haunting portrayal of Hamlet’s inner demons by Gardners Lane primary, here was an inspiring reminder of the power of Shakespeare’s language to reach down through the centuries to today’s young audiences.

Participating schools Dunalley primary Gardners Lane primary Lynworth primary Pittville School Whaddon primary

Bookstand – Prison Project in Gloucester September-October This year saw the second of our Bookstand projects in association with HMP Gloucester. Poet and wordsmith Marcus Moore led seven creative writing workshops with prisoners, including vulnerable prisoners. This is a chance for prisoners to explore their creative side, to reflect on their thoughts and experiences, and to put pen to paper if they wish. Marcus

2009_09_07_SOC_8a_Cheltenham Festivals11 looked at haikus, acrostics, six-word poems and fifty-word stories, and many of the prisoners wrote their own versions. These were printed in leaflet form and distributed at the Literature Festival.

5. Town Hall Developments

One of the major risks to the success of the Festival organisation in the future is the facilities and capacity of the Town Hall and gardens.

Plans to develop and improve facilities at the Town Hall and Pump Room and to review the way in which the gardens can support Festival activities both for the benefit of Festival events and engagement of the wider community are vital to the long-term success of the Festivals as well as Cheltenham’s reputation as a centre of cultural excellence.

The Festivals’ company continues to explore development opportunities for the Town Hall as recommended in the Pratley Review published in February 2006

6. Conclusion

An average annual growth in income of 11% between 2005 and 2008 shows that the Festivals are making extremely good progress. However, that growth rate must increase and the organisation still has some way to go to meet the challenge of being sustainable when the LABGI grant ends in 2009 when they will need to be generating 85% from sponsorship, ticket sales and other commercial activity. The Festival organisation is confident that despite the economic downturn, the opportunities exist for further growth and these opportunities are within its grasp. However, given that the Festivals are reliant on the Council for the provision of key services and venues, the opportunities can only be realised for the Festivals with the full co-operation of the Council and its staff in supporting Cheltenham Festivals in becoming a more commercially driven organisation.

Donna Renney Chief Executive 14 August 2009

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