The Cabinet Member for Communities, Leisure and Arts introduced the report setting out the 2023/24 financial and performance position for the services reporting into the Communities, Leisure and Arts Policy Advisory Committee as at 30 September 2023 (Quarter 2).  The Cabinet Member drew the Committee’s attention to (a) the improvements in the percentage of tickets sold at the Hazlitt and footfall at the Museum and Visitor Information Centre and (b) the update on progress made against schemes using UK Shared Prosperity Fund monies.

In response to questions:

The Cabinet Member advised the Committee that:

·  The ongoing improvement in footfall at the Museum reflected the work put in by the staff and the Trusts to make sure that the facility continued to be worth a visit and to attract visitor numbers.  The opening of the Carriage Museum during the summer had contributed to the improvement.

·  It was disappointing that a number of units at Lockmeadow had fallen vacant during the period leading to a shortfall against budget.  However, progress had been made in identifying new tenants and the business case for the acquisition of the Complex anticipated that there would be a period during which some units would be non-income producing.

·  Under the terms of the current contract with the operator of the Leisure Centre, the Council was responsible for excess utility costs.  The overspend in relation to the Leisure Centre reflected utility prices continuing to be at a high level.  This would be taken into consideration when the new contract was negotiated.  Overall, she was pleased that a lot of people were still visiting the Leisure Centre and that they considered it to be value for money.

·  It was encouraging that there had been a reduction in the number of households at risk of (or in) financial crisis.

·  The Key Performance Indicator measuring the ‘Market Hall Occupancy Percentage’ achieved 56.04% against its target of 75%.  The situation was being monitored and the Council as operator of the facility was doing all it could to attract stall holders such as repainting the under croft.  No increases were proposed to the charges for market pitches.

The Director of Finance, Resources and Business Improvement advised the Committee that:

·  In terms of the shortfall against budget in respect of the Lockmeadow Complex, it was anticipated when the Council acquired the Complex in 2019 that it would be challenging to replace tenants whose leases were due to end in 2023/24 if they did not continue.  That had been the case, but Heads of Terms had been agreed with a prospective tenant for the former Frankie & Benny’s unit and Serco, the contractor at Maidstone Leisure Centre, had taken on the David Lloyd unit and rebranded it as the Lockmeadow Health Club.  Discussions were taking place with letting agents to identify suitable tenants for the other vacant units.

·  The business case for the Lockmeadow acquisition assumed a twelve-month timeframe at the end of the existing leases when the units would either be vacant or, if let, subject to an offer of a rent-free period.

·  When budgeting for next year the assumption would be made that new tenants are found for the vacant units, but it was also worth considering Lockmeadow in the context of the overall commercial property portfolio.  The Council was generating around £4m in total from the commercial property portfolio and he was hopeful that a shortfall in one area would be offset in others.

·  For the period up to the end of the current contract for the operation of the Leisure Centre, there was a separate agreement with Serco for the operation of the Lockmeadow Health Club and as part of that agreement income from the Health Club was shared between the Council and Serco.  It was proposed to combine the Leisure Centre, Mote Park Outdoor Adventure and Lockmeadow Health Club into one leisure services contract subject to Cabinet approval in January 2024.

RESOLVED:

1.  That the Revenue position as at the end of Quarter 2 for 2023/24, including the actions being taken or proposed to improve the position, where significant variances have been identified, be noted.

2.  That the Capital position at the end of Quarter 2 for 2023/24 be noted.

3.  That the Performance position as at Quarter 2 for 2023/24, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted.

4.  That the Recovery and Renewal Update, attached at Appendix 3 to the report, be noted.

5.  That the UK Shared Prosperity Fund update, attached at Appendix 4 to the report, be noted.