Hampshire County Council

Culture and Communities Policy Review Committee Item 9

18 January 2007

Executive Member - Recreation and Heritage Item

18 January 2007

Support for Independent Arts Organisations 2007-10

Report of the Director of Recreation and Heritage

Contact: Janet Mein ext. 5468 e-mail: [email protected]

1. Introduction

1.1 Hampshire County Council provides financial support for important independent arts organisations serving the county's population. Decisions on the level of support are taken in advance of the financial year in order that organisations have time for planning their budgets. This year it is proposed also to indicate amounts to be earmarked for the following two financial years (where organisations have provided business plans which cover this period) to be confirmed annually on receipt of satisfactory monitoring reports.

1.2 The County Council is able to utilise broad powers under the Local Government Act 1972 to provide financial support for the arts. In particular, Section 145 of the Act enables the Council to contribute towards the expenses of doing anything necessary or expedient for any of a number of purposes, including the provision of entertainment of any nature, or the provision of a theatre, concert hall, dance hall or other premises suitable for entertainment. The powers include the ability to contribute towards the expenses of maintaining a band or orchestra, and towards the development and improvement of the knowledge, understanding and practice of the arts.

1.3 Funding is provided using the resources held within the Recreation and Heritage budget for 2007/8, and the recommendations in this report are subject to the approval of that budget by the County Council. The base budget for Support for Independent Arts Organisations and support for one off projects and activity, subject of separate reports, is £938,000 which does not include any allowance for inflation. Recommendations relative to the portfolio of revenue funded organisations and new initiatives resulting from the deliberations of the Arts Review Panel are listed in Appendix 1.

1.4 In the light of the current budget developments, including the necessity to reduce the investment in the Arts Service by 4.2%, amounts recommended have been presented without inflation added on. This represents a real term reduction in investment. Clearly this is not desirable and it is recommended that, if possible, these figures are revisited once the budget position becomes clear with the intention of adding any appropriate inflationary amount if this becomes available. The figures in Appendix 1 should therefore be regarded as benchmark figures. However in addition to the organisations which are the subject of decision it should be noted that new investment in The Lights in Andover has been made in the course of the year. Joint investment by Policy and Resources, Children's Services and Recreation and Heritage Executive Members has resulted in additional investment of £120,000 per annum for 2007/8 and 2008/9.

1.5 The funding held under this budget heading, called Revenue Partnership Funding, is identified for major arts organisations forming essential elements of the arts infrastructure of the county that would benefit from the ongoing support of the County Council. This is distinct from the Arts Activity grants which are for discrete project, short programme and festival activity.

2. New Scheme

2.1 At the Decision Day on 14^th June 2006 a new process for the monitoring and review of the revenue clients was approved. Specifically it was agreed that

· grants and other support for strategic partners to be the subject of more formal, longer term agreements

· where possible, agreement to be sought with other major funders on joint approaches to the funding of key partners

· greater emphasis on corporate and cultural strategy objectives as the basis for allocating and evaluating grants

· wider publicity for Recreation and Heritage grant programmes

2.2 In examining the portfolio of clients it is clear that the majority of organisations have been on the list for very many years. Many of them for well over a decade. The exception to this is Making Space previously supported through the Recreation and Heritage Policy Fund and the new addition to the list, added in May 2006, The Lights in Andover. Hampshire County Council made a corporate decision to support this initiative at the request of Test Valley Borough Council. Investment in The Lights is split between Recreation and Heritage Policy Fund, Children's Services and Policy and Resources. The current arrangement will run for three years. At £120,000 per annum it is the second largest single investment in infrastructure in Hampshire.

2.3 All the organisations in the list are subject to either bi or tripartite investment arrangements. This means that the County Council is part of a funding matrix and that decisions made by the County Council could upset these arrangements and have the potential to destabilise the infrastructure. The levels of investment by both Arts Council England and the Districts, as principal investors, is an indicator of the importance of this infrastructure in the cultural ecology of the region.

2.4 As a way of taking into account the very varied portfolio it is proposed that, from now on, revenue funded clients should be funded on the basis of agreements built around the organisation's business plans and assessed against a balanced scorecard using the following criteria.

· How the organisation delivers against Hampshire County Council's Corporate, Cultural and Arts Strategy Objectives

· The artistic quality of the work programme presented

· Benefit to Hampshire residents and visitors as either passive or active participants

· Financial viability and management

· Organisational capacity to deliver the business as set out in the business plan

· Stakeholder investment

Evidence to enable assessment using this method is provided by the client in the form of:

· Progress report against the business plan objectives for the year

· Statistical information relative to activity and participants (see Appendix 2)

With the addition of :

· Reports from officers observing board meetings and attending events, file notes and consultation and comment from other principal stakeholder funders.

2.5 All the organisations are asked to present three year plans which cover the period 2007/8 - 2009/10 at the start of this process and then, without prejudice, three year agreements entered into on the basis of the proposals put forward. Although many of the organisations have business plans that do indeed cover this planning period, some of them have planning cycles which fall short by one year. The recommendations laid out reflect the differences in planning cycles only and do not indicate an adverse position for the organisation. Clearly, given the current budget constraints figures for the years 2008/9 and 2009/10 can only be indicative.

3. Uncertainties and New Initiatives

3.1 As the County Council moves towards longer planning periods it has to manage the uncertainties caused by the planning frameworks of other funders, external organisations and new initiatives from the clients themselves which may occur over the period. There are a number of these in the current period.

3.2 Fairfields Arts Centre - at present the Arts Centre is situated in a building leased from Basingstoke and Deane Borough Council. The current lease ends in September 2007. Quoting from a report to the Borough's members the Arts and Heritage manager writes "Senior officers have met the Director and Chairman to discuss the situation. In essence the Council would like to consult further with the Trust and other stakeholders as part of the ongoing Central Area Visioning before either party determining what the long term arrangements might be. The Consultation is due to report back on initial findings in June 07 and it is proposed that the lease of Fairfields is addressed again before September 07. It has been proposed that a renewal would likely be for a short term lease for a year while the Central Area Visioning reaches conclusions". The County Council funds the Arts Centre principally for its contribution to the development of the visual arts infrastructure in the County and is concerned that it continues to enable the development of that infrastructure. As a way of reflecting the County's commitment to the development of the visual arts infrastructure a provision for this purpose has been created in the budget equal to the amount currently invested in Fairfields Arts Centre should the lease not be renewed and the centre close.

3.3 TAPs - At present TAPS rent space at the Fairfields Arts Centre and the uncertainty over the lease position is reflected in the recommendation. The Arts Review Panel are also recommending that TAPs be informed that from 2008/9 they should apply for project funding for activity and that it is their wish that TAPs increase the amount of work they undertake in Hampshire in 2007/8 over the 2006/7 level reported

3.4 Joint Investment Fund. The Current Joint Investment Fund has invested in seven separate strategic initiatives over the last three years. The Fund is invested in by the County Council, Arts Council England and combined Hampshire Districts and the Unitaries of Southampton, Portsmouth and Isle of Wight. 2007/8 is a bridge year between the current regime and a new regime initiated by Arts Council England for 2008 and onwards. In the light of the uncertainties and the fact of the bridging year it is proposed to reduce the investment in the fund and bring it to a level that is more proportionate with the Districts.

3.5 Theatre Royal Winchester the current arrangement for the Theatre is based on an agreement of £1 for each £2 invested by Winchester City Council. The County Council has had informal notice of the City's intention to reduce its investment in the Theatre by £5,000. This has not been confirmed and adjustments to the investment level proposed by the County Council may take place. Further examination of this agreement and its terms needs to take place.

4. New Initiatives

4.1 Music Development - This provision has been created a result of the recommendation of the Arts Review Panel which looked at the portfolio of revenue funded clients. The idea for the fund was generated as a response to a round table discussion including music practitioners and promoters, council officers and Members. In order to enable the Council to support new initiatives headroom has to be found in the available budget. This has been done by progressively reducing the revenue funding to the Bournemouth Symphony Orchestra and investing the balance in new initiatives.

4.2 Grant Leverage - The County Council Arts Service manages dedicated and ring fenced budgets, some of which are provided by other Departments e.g. Adult Services, PBRS. It does not have operational budgets which it can use to develop new initiatives. It is therefore very difficult to develop proposals for external funding bids without the ability to pump prime or match fund within these bids. As a mechanism to enable the County Council to generate well framed and strategic initiatives capable of attracting external funding it is proposed to create a budget which can be bid to by the Arts Service (and as appropriate by other Recreation and Heritage partners) to enable it to secure funding for arts activity in Hampshire.

5. Impact on Hampshire County Council Objectives

5.1 All the arts organisations detailed in the report make a significant contribution to the quality of place of Hampshire residents. In addition, in their various ways, through targeted education and outreach activity, these organisation can also contribute to the wellbeing agendas and, less often, Hampshire safer and more secure for all. These arts organisations also support the Cultural Strategy's aims of access, inclusion, contributing to a sense of place, providing learning opportunities and increasing participation.

6. Impact Assessment

6.1 Financial support to these organisations will enable them to continue to provide an inclusive service which benefits the whole community.

6.2 No groups or organisations should be excluded from any benefit arising from these decisions. A new application procedure has been introduced, this procedure does include equalities monitoring information as agreed as part of the corporate review of grants programmes and procedures.

7. Conclusion

7.1 The arts organisations of Hampshire considered to be the essential infrastructure are listed in Appendix 1 as the Revenue Clients of the County Council. They are all currently providing a comprehensive programme of arts activities for Hampshire people. Their continuing service is seen as important for the delivery of the arts and the County Council's Corporate and Cultural Strategies. For these reasons it is recommended that all funding is made, subject to such conditions as listed in Appendix 2.

Recommendation

That the Executive Member for Recreation and Heritage approves the funding amounts allocated for 2007/08, together with the indicative funding for subsequent years as set out in Appendix 1, subject to the relevant budgets and performance being approved.

LINK TO CORPORATE STRATEGY

Yes No

Hampshire safer and more secure for all _

Maximising well-being _

Enhancing our quality of place _

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

N.B. the list excludes:

1. Published works.

2. Documents that disclose exempt or confidential information as defined in the Act.

TITLE LOCATION

Detailed grant application forms

with associated documentation Arts Service, Mottisfont Court

Balances scorecard notes Arts Service, Mottisfont Court

Office files Arts Service, Mottisfont Court

		Funding Received 2006/7	Revenue Partnership Funding for Independent Arts Organisations 2007/08 and forecast 2008/09 Appendix 1 Funding Requested 2007/8	Funding recommended 2007/08	Funding recommended 2008/9 (Non Inflated Amounts)	Funding recommended 2009/10 (Non Inflated Amounts)	Notes
1	SHIPS Members' Arts Forum Joint Investment Fund with Arts Council England	60,000	N/A	35,000	35,000	35,000	The amount realigns the partnership with the combined districts and represents a more equitable arrangement. This equates to approximately to £2 to each £1 put in by the combined Hampshire Districts, not including the unitary authorities.
2	Bournemouth Symphony Orchestra	172,000	178,217	150,000	130,000	120,000	Reduction in this fund to be reinvested in music development.
3	Nuffield Theatre - Education - Rental assistance	5,000 30,000 5,000	41,200	10,000 30,000	10,000 30,000	10,000 30,000	Change recognises that without a sustained core of activity it is not possible for the Nuffield to deliver quality sustained outreach work that impacts in Hampshire. Hampshire Youth Theatre is supported separately by Children's Services.
4	Theatre Royal Winchester	105,000	105,000	105,000 4,000	109,000	(109,000 tbc)	Includes 4,000 for Winchester rural youth theatre (previously applied for separately). Amount is predicated on minimum input from Winchester City Council of £2 for every £1 from HCC. It is understood that WCC are proposing a £5,000 reduction in the grant to WTR in 2007/8. Current business plan runs to 2009.
5	Forest Forge Theatre Company	52,000	53,520	52,000	52,000	(52,000 tbc)	Current 3 year plan only runs to 2009.
6	Proteus Theatre Company	48,500	49,713	48,500	48,500	48,500	B&DBC are undertaking a benchmarking exercise re Proteus. HCC needs to keep in contact with the Borough relative to joint agendas and future investment and performance.
7	Havant Arts Centre	105,000	108,150	105,000	105,000	105,000
8	Fairfields Arts Centre, Basingstoke	46,500	47,895	23,250 23,250 (on confirmation of lease renewal)	23,250	0	At the time of report the lease on Fairfields' building runs out in September 07. B&DBC are postponing a decision on renewal until the consultation on the Top Of the Town plan is complete. They are anticipating a summer decision. Any extension is likely to be for one year at that point.
9	Hampshire Dance Trust	27,000	39,000	27,000	27,000	(27,000 tbc)	An increase is sought to sustain pan Hampshire activity begun during the JIF funded programme. Proposed that JIF be asked to continue investment in youth dance in 2007/8. Current business plan runs to 2009, only headlines available for the following year.
10	Making Space	33,000	33,000	33,000 5,000	33,000 5,000	33,000 5,000	HCC will contract Making Space to manage the Leigh Park Craft studios on its behalf - in the form of a three year agreement at £33,000 p.a. An additional £5,000 should be earmarked for specific development projects subject to application.
11	ArtSway	15,000	15,000	15,000	(15,000 tbc)	(15,000 tbc)	The current business plan finishes in March 2007. The organisational review, funded by ACE SE, (completed Dec 2006) will form the platform from which ArtSway will develop the next plan. When this has been received figures for 2008 - 10 can be inserted.
12	Time Limited Grants	53,650		0	0	0
13	TAPS Rent to Fairfields + project	14,350		3,000 + 3,000 + 8,350	3,000		Review Panel recommendation that the rent agreement be retained and that in 2008/9 TAPs apply to the Arts Activity Fund for Project Funding.
14	The Anvil	25,000		89,000	89,000	89,000	The Anvil Trust has been asked by B&DBC to manage the Haymarket Theatre. It is proposed to earmark the amounts identified pending receipt of a business plan for the joint operation.
15	Haymarket	64,000
16	Visual Arts infrastructure in Hampshire				23,250	46,500	Provision created to ensure that investment in the Visual Arts infrastructure is not diminished by any decision relative to the Future of the Fairfield's Arts Centre building.
17	Grant Leverage			35,000	40,000	40,000	Provision created to enable Arts Service to bid against this amount to support application to outside funding bodies to invest in new strands of activity in Hampshire.
18	Music Development			22,000	42,000	52,000	Investment recommended by Arts Review Panel.
	Sub total	861,000		831,350	820,000	817,000
19	Arts Activity and Two for One	77,000		106,650	118,000	121,000	Increased investment in Arts Activity possible through realignments in the grant portfolio.
	TOTAL	938,000		938,000	938,000	938,000
20	The Lights R&H Policy Fund Children's Services Policy and Resources	100,000		120,000	120,000		Three year agreement with Test Valley Borough council as report 18th May 2006.