|
Bath & North East Somerset Council | |||
DECISION MAKER: |
Councillor Nicole O'Flaherty, Executive Member for Tourism Leisure and Culture |
PAPER |
9 |
|
DECISION DATE: |
On or after Tuesday 1st May 2004 |
||
TITLE: |
|||
WARD: |
All | ||
AN OPEN PUBLIC ITEM | |||
List of attachments to this report: | |||
1 THE ISSUE
1.1 This report introduces the second annual update of the Heritage Services Revised Business Plan 2004-2007 adopted by Council in February 2002.
2 RECOMMENDATION
2.1 The Executive member is asked to adopt the Heritage Services Revised Business Plan 2004-2007.
3 FINANCIAL IMPLICATIONS
3.1 Heritage Services generates external income for the Authority of over £8 Million p.a. This is planned to increase to £10 Million p.a. by 2007. This income is a strategic resource for the Authority, and represents the main direct contribution to its finances from the local tourism economy.
3.2 The Authority is unique in the country in operating its Museums Service at a profit. The annual profit earned for the Council increased by over £1.5 Million p.a. in the eight years since the inception of B&NES. During this period the profits earned for the Council from its museums have totalled £21 Million. In the coming year, the budgeted annual profit of £3.3 Million equates to a reduction in each Council Tax bill of £45.
4 THE REPORT
4.1 The Business Plan attached has been reviewed and updated for the next three financial years, 2004/05 to 2006/07. It sets out a strategy that will enable profits to be grown in a sustainable manner in order to achieve the annual targets agreed as part of the Council's Corporate and Financial plans.
4.2 The updated Business Plan gives a brief review of 2003/04 and summarises how the Service has performed when benchmarked against other leading visitor attractions. It describes the changing visitor profile and the effect it has had on primary and secondary income. It sets out a pricing strategy to maximise income earned from this changing market and the investment required to achieve it and sustain income and profit levels on an ongoing basis.
4.3 The Business Plan consists of two elements:
(i) Business Strategy - maximising income and profit from primary and secondary spend, supported by targeted investment to support these activities.
(ii) Short-term reductions programme - in costs in areas that do not directly affect business performance, including continued savings in staff costs.
4.4 The Marketing Strategy required to deliver the profit targets is described in the Plan.
5 RISK MANAGEMENT
5.1 The report author and Executive Member have fully reviewed the risk assessment related to the issue and recommendations, in compliance with the Council's decision making risk management guidance.
6 RATIONALE
6.1 Heritage Services operates as a Business Unit, with annual profit targets and investment levels agreed corporately on a rolling three-year basis. The business strategy to achieve these targets is detailed in a Business Plan ('The Plan'), reviewed and revised each year. The Plan provides an integrated approach to income generation and the investment necessary to achieve it, and is aligned with the Council's corporate aims and objectives. Inspectors during the 2002 Best Value Review of Cultural and Leisure services, in which Heritage Services received a 3 Star "excellent" rating, praised this approach.
6.2 A review of long-term options for service delivery, including externalisation, has been undertaken over the last year. The review was recommended by the Culture and Leisure Time Best Value Review and was thought necessary as a means of securing future funding both to maintain and conserve the Council's heritage assets and protect and develop the income streams earned through them. The findings of this study are currently subject to external scrutiny by an independent consultant and will be considered in a report to the full Executive in May.
7 OTHER OPTIONS CONSIDERED
7.1 The process of revising and updating the Business Plan has involved consideration of a number of different pricing, marketing and investment options. The financial and business effects of these options were modelled and evaluated. The business strategy attached recommends a coherent and integrated series of decisions that are most likely to enable the Service to meet the targets required of it by the Financial Plan and sustain this level of performance in future years.
7. CONSULTATION
7.1 Work to update the Business Plan has involved consultation in a number of ways.
(i) Members of the Heritage Services Management Team have been fully involved in their respective service areas.
(ii) The business strategy has also been discussed with the Heritage Service Staff Group.
(iii) Ongoing sectoral liaison through the Association of Leading Visitor Attractions (ALVA) has ensured the best possible market intelligence.
(iv) Colleagues in Strategic Resource Planning were also fully consulted.
(v) The Executive Member for Tourism, Leisure & Culture has been consulted during the planning and drafting stages.
|
Stephen Bird, Head of Heritage Services (01225) 477750 Richard Hartill, Financial Manager (01225) 396405 |
Background papers |
Heritage Services Revised Business Plan 2003-2006 Executive Member for Tourism, Leisure & Culture |
