13
CALDERDALE MBC
WARDS AFFECTED:
TOWN
COMMITTEE:
COMMUNITY SERVICES SCRUTINY PANEL
DATE:
1 December 2005
SUBJECT:
Grant to Square Chapel
REPORT OF:
HEAD OF LIBRARIES, MUSEUMS AND ARTS
1.
ISSUES
Continuation of annual grant of £20,000 to Square Chapel
2.
NEED FOR A DECISION
The three term of this grant comes to an end on 31 March 2006.
3.
RECOMMENDATION
Members are asked to comment on the options outlined.
4.
BACKGROUND
4.1 On 28 April 2003 the Cabinet agreed to an increase in the annual revenue grant to Square
Chapel of £20,000 per annum for three years. Funding was sourced from the Victoria Theatre
budget for orchestral concerts.
The Council provides financial support to Square Chapel in the following ways:



An annual core revenue grant of £9,860
A further amount of £13,572 per annum which represents the repayment of the capital loan
(Minute P&R (F&R) Sub on 21 January 1998 B422 976)
The additional grant of £20,000 per annum allocated in April 2003 for an initial period of
three years (Cabinet Minute 28 April 2003 B1 2)
4.2 The additional grant of £20,000 pa was awarded to avert a threat of closure of Square
Chapel due to revenue shortfall and to match increased funding from Arts Council England.
4.3 This funding was subject to close monitoring arrangement, with six monthly reports to
Community Services Scrutiny Committee against business planning targets agreed jointly with
the Arts Council of England, Yorkshire (ACEY). Throughout the three-year period members
have consistently endorsed the quality and success of Square Chapel’s operations and public
programmes.
4.4 This three-year funding agreement is now subject to reconsideration. Officers have
consulted with Arts Council England, Yorkshire and it is clear that the Executive of the Regional
Office would encourage the Council to continue funding at this level. A letter of support from
ACEY is attached as Appendix 1
4.5 Square Chapel has also expressed its strong request that this funding is maintained. The
Director has provided the attached paper -Appendix 2, which sets out the importance of this to
the organisation’s future.
4.6 Over the past three years, Square Chapel has become a significant contributor to the
regeneration of Halifax Town Centre, the Piece Hall and the cultural life of Calderdale.
4.7 As reported to Community Services Scrutiny Committee on 6 October 2005, Square Chapel
is currently part way through a feasibility study, looking at future plans for expansion and
organisational development. This is funded by Arts Council England Yorkshire and Yorkshire
Forward and is indicative of the regional awareness and support for Square Chapel.
4.8 This is clearly an important time in Square Chapel’s development. The thee year additional
funding agreement runs out at a pivotal time, where Square Chapel has established itself as an
integral element of the regeneration strategy for Halifax town centre and the cultural
infrastructure of the borough. This also is recognised by significant regional support from
Yorkshire Forward and Arts Council England. This is the context for decisions on future funding
arrangements.
5 OPTIONS
5.1 Four options have been identified thus far and these are outlined below:
5.2 Remove the £20,000 support
The implications of this option would be serious for Square Chapel and return it to the extreme
financial difficulties that it was experiencing three years ago. It would have a major impact on
Square Chapel’s business structure as the funds are integral to its operating budgets and it
would inevitably result in the loss of staff. A deficit of £20,000 would result in the loss of two
staff and subsequent reduction in the programme which brings with it a resultant loss of earned
income. Unless replacement funding could be secured the organisation may be forced to close
within twelve months.
Withdrawal would also have an adverse impact on the level of funding from Arts Council
England Yorkshire. ACEY invests heavily in Calderdale: in 2004/5 it awarded a total of
£463,480 to 8 regularly funded clients and an additional £316,888 as Grants for the Arts
towards activity in the Borough. ACEY perceives CMBC’s support for Square Chapel as
indicative of the Council’s investment in the voluntary arts infrastructure across the borough.
5.3 Reduce the support from £20,000
The size of any reduction would determine the effect on operations but even so it is clear that
that any loss of support would have a serious consequence on the organisation’s financial
stability. For example, a reduction of £5,000 would mean the loss of the Volunteer Coordinator,
a post that manages the 100 volunteers upon which the operation is reliant. It is also possible
that as ACEY is keen to achieve a matched commitment from itself and the local authority, any
reduction might precipitate a commensurate reduction in their level of support.
5.4
Maintain the £20,000 support at its current level
This option ensures continuity for Square Chapel and would allow it to plan effectively for future
sustainable development. It maintains the parity of funding with ACEY and will be instrumental
in helping to unlock funding from other sources. Square Chapel is very successful in raising
funds from a wide range of sources and this is facilitated by the secure continuity of the
council’s funding.
5.5 Increase the level of support above £20,000
This option would allow Square Chapel to grow. It would ensure the survival and development
of its Inclusive Arts Outreach programme, which currently targets the elderly, young people,
minority ethnic communities and people with learning difficulties.
Any of these options could also be subject to time constraints. The initial arrangement was for
three years but this could be reduced or increased. It is clear, however, that Square Chapel
would wish the term to be as long as possible in order to attract other long term sponsors.
Consideration could be given to the criteria upon which any extension of funding is based.
6. FINANCIAL IMPLICATIONS
The budget of Community Services is under great pressure and faces challenging savings
targets in the next two years.
Latest audited accounts and management accounts are available for inspection from Square
Chapel Trust or Council officers.
6.1 Square Chapel’s programme of activities makes a significant contribution towards the
Council’s priorities. This has been formally assessed by officers and Members on a six monthly
basis for the past three years.
6.2 Improved dialogue between the two organisations has developed as a result of the more
formalised funding arrangement of the past two years and the Council’s Agenda for Change.
This has facilitated more effective partnership working between the two organisations.
6.3 Square Chapel is included as a contributing partner organisation within the Council’s
Community Cohesion Action Plan, with the specific aim of developing cultural activity
programmes and activities designed to foster cross community contact: Objective 1 of the Plan.
6.4 Square Chapel is a key element and member of the stakeholder group working on the
Piece Hall Renaissance Area. It is also leading on the drafting of an application to the National
Lottery Living Landmarks fund on behalf of the partnership, which comprises the Council,
Eureka, Calderdale College and Square Chapel itself.
7
CONCLUSION
7.1
The work undertaken by Square Chapel has clear links to the Council’s corporate
priorities and has been regularly scrutinized by members. Square Chapel also attracts
significant investment and funding from various regional agencies and has a high reputation. It
draws heavily on the work on volunteers to present a full and diverse programme of activity in
the centre itself and out in the community. It has ambitions to expand to become an even more
integral part of the Piece Hall quarter and this adds great value to the Council’s plans for
renaissance. These are factors that need to be balanced against the clear financial pressures
within the Directorate.
Gary Borrows
Head of Libraries, Museums and Arts
22 November 2005
------------------------------------------------------------------------------------------------------------------------------For further information on this report contact:
Fi Godfrey-Faussett - Arts Officer
Tel: 01422 284428
Barry Sheridan – Arts, Education and Outreach Manager Tel: 01422 284452
Documents used in preparation of this report:
Square Chapel file
Documents available for inspection at:
Community Services, Spring Hall Mansion, Huddersfield Road, Halifax, HX3 0AQ