Items called in from the Cabinet meeting of Monday 18 March 2024.

(Please bring the Cabinet agenda for Monday 18 March 2024 previously circulated to Members).

The Chair explained that the above item was considered at Cabinet on 18 March 2024 and that it had been called-in in order for the Committee: -

·         to consider the impact that the decision will have on the town centre offer and the impact that the decision will have on the businesses of the town;

·         to consider if the savings proposed will make a meaningful difference to the Council's budget position; and

·         to consider if the decision taken was within the public interest.

The Director (Communities and Inclusive Growth) advised that, in the last decade, the Council had experienced a sustained period of challenge to its financial sustainability. In response to those challenges, the Council’s Medium Term Financial Strategy (MTFS) since 2016 had focused on the delivery of a multi-faceted programme of activity intended to optimise income generation, innovate delivery of services and ensure that the limited resources of the Council were appropriately focused on the needs of the Borough.

The Council delivered against the programme and, in February 2020, was able to announce that £4.25m of base budget reductions had been implemented in the period since 2016, putting the Council in a position where it had in place a sustainable financial plan for the forthcoming 10 years.

Since that time, the Council had faced further significant challenges as a result of the COVID-19 Pandemic and the economic situation. In response to this, in February 2023, the Council approved a revised five-year MTFS spanning 2022-23 to 2026-27 intended to respond to the identified budget gap at that time.

Despite delivering measures to reduce the Council’s base budget by £3.3m since 2022, cost and demand pressures continued to be present and the Council’s level of annual expenditure continued to exceed anticipated income with working balances significantly depleted in recent years and no longer a sustainable source to manage the Council’s financial position.

In February 2024, Full Council was informed that without proactive action to deliver the Balancing the Budget initiatives, the Council could find itself in a position where it had limited capacity to respond to and manage the impact of any significant or unexpected events or emergencies during 2024-25 and set a balanced budget for 2025-26.

Therefore, the report presented to the Cabinet set out options for savings and reducing cost pressures in relation to activities undertaken by the Council within Gravesend Town Centre; the three main activities being Splash of Colour, Town Centre Dressing and the Visitor Information Centre. It should be noted that Town Centre Dressing did not incorporate formal flag raising on the Community Square.

The options for consideration were outlined in appendix one to the report. The options had been set out into three categories which would deliver three different levels of savings ranging from £13,000 to £63,000:-

·         Option A – continue current service with reduced budget and continuation of the Visitors Information Centre;

·         Option B – reduce service and relocation of the Visitors Information Centre; or

·         Option C - cessation of a service.

The Director (Communities and Inclusive Growth) advised that the savings/income identified within the report were estimates and as such, the actual savings achieved for those options that the Cabinet were ‘minded to’ implement may differ from those within the report as more detailed financial analysis would be undertaken. Updated information on the financial impact of 'minded to' options would be presented to Members periodically.

The Director (Communities and Inclusive Growth) advised that the Cabinet considered the options and their preferred option was ‘Option B - reduce service and relocation of the Visitors Information Centre’ which would generate a saving of circa £37k. It was noted that visitor information would continue to be provided from the St George's Art Centre, which was currently getting good attraction/footfall; therefore, it was felt that the relocation would not have a detrimental effect and may enhance the offer. 

Members were informed that as a result of the potential relocation of visitor information at the St George's Art Centre, an internal staff consultation would be needed (with the trade unions) before any final decision could be made regarding this option to ensure staff feedback had been received and considered before finalising any proposal(s).

It was also confirmed that should there be a special event/celebration such as a Coronation then one-off funding would be sought for Town Centre Dressing.

With regard to Splash of Colour, it was felt that a more sustainable approach to the Town Centre horticulture (e.g. evergreen and perennial planting) would align more with the Council’s climate change pledge.

The decision of the Cabinet was as follows: -

            Resolved that the Cabinet be ‘minded to’ reduce budgets by a total of       £37,000 by: -

·         taking forward a wider programme of town centre improvements, primarily funded through UKSPF with a smaller budget of £10,000 retained from the Splash of Colour budget to meet ongoing maintenance costs;

·         reducing the Town Dressing budget to £3,000 to allow for 1 set of town bunting only per year; and

·         delivering visitor information through existing staff at St George's Art Centre. The existing Visitor Information Centre staffing of 1FTE moved to an office-based role with continued responsibility for management of Visit Gravesend website and social media as well as additional proactive work to build partnerships and better market Gravesham as a visitor destination.

The Committee considered the report together with the overview provided by theDirector (Communities and Inclusive Growth) and highlighted the following: -

·         With regard to the urgent need to deliver the Balancing the Budget initiatives in order to set a budget for 2025-26, concern was expressed regarding the initiatives being presented in bite-sized pieces instead of providing a bird’s-eye view of the total savings required in each directorate. It was felt that, if savings were to be presented in bite-size pieces, then it was difficult to make a decision as to what level of savings would be needed in order to make a meaningful contribution. It was felt that the options presented resulted in a relatively small saving but would have a significant impact; the Committee asked whether the wider ‘town centre’ budgets had been looked at. Previously, the saving/initiatives had been presented in a bird’s-eye view format therefore concern was expressed regarding the current approach and whether the intention will be to continue to present them in this way. The Director (Corporate Services) advised that the Council was following the same process as had been undertaken previously for considering service delivery options. There was a plan in place to proactively deliver the savings required that went beyond service design options; the Balancing the Budget plan/initiatives were set out in the MTFS. The Director (Corporate Services) emphasised the need for the plan/initiatives to be accelerated and delivered to ensure the ongoing financial sustainability of the Council. The Director (Corporate Services) drew Members’ attention to future budget monitoring/supplementary reports where progress in delivery would be reported.

·         With regard to visitor information being delivered via the St George's Art Centre, concern was expressed that the view of the new Market operator was that use of a unit at the market for visitor information may not be considered a complimentary use or in line with the new Market operator’s plans to reinvigorate the site. TheDirector (Communities and Inclusive Growth) advised that, if visitor information was to remain at the market, then additional budget would be required and/or the Council would need to consider removal of the anticipated management fee from the new Market operator to effectively recompense the new Market operator for a reduced operating area. Street food vendors, games and entertainment were all part of a new operator’s plans to reinvigorate the site.

·         Had consultation been conducted and, if so, with who. It was felt that consultation should be undertaken with officers at the St George's Art Centre regarding the added burden of delivering visitor information and that relevant training would need to be provided to those officers. It was also felt that the options presented within the report would have an impact on the businesses within the town centre therefore the Committee asked whether the views of those businesses had been sought. TheDirector (Communities and Inclusive Growth) advised that consultation would be undertaken with those officers affected by the relocation of visitor information however the information would be delivered in a different way/format such as front-of-house staff providing basic visitor information and signposting which may then be supplemented by digital displays and hard copy literature. The existing Visitor Information Centre staffing of 1FTE would be moved to an office-based role with continued responsibility for management of Visit Gravesend website and social media as well as additional proactive work to build partnerships and better market Gravesham as a visitor destination. The Director (Communities and Inclusive Growth) advised that no specific consultation had been undertaken with businesses regarding the options/proposals set out within the report however officers regularly liaised with those businesses and that it had previously been raised that money could be spent in other/better ways for example investing in designing out anti-social behaviour in hotspot areas such as Queen Street and King Street.

·         With regard to Splash of Colour and Town Centre Dressing, could the Council seek donations and/or sponsorship from local businesses. It was also suggested that funding could also be given to local businesses to dress-up their frontage as funding was being provided to existing traders within the market. The Director (Communities and Inclusive Growth) advised that donations and/or sponsorship would be explored further and that, 2024 will be the Council’s Year of Volunteering, therefore officers could assist with planting etc. The Director (Communities and Inclusive Growth) advised that as part of the market procurement, the Council would be providing a package of support to ensure the success of the operation and provide short-term subsidy/funding to existing traders as rent prices etc were likely to increase. 

Following a detailed discussion, the Committee noted the report and requested that the above comments be taken into consideration.