Agenda item

Simon Walters, Director of Communities and Environment:

·         Provided Performance Scrutiny Committee with a report on the final financial performance of the 2018 Lincoln Christmas Market.

·         Highlighted that the Christmas Market was expected to generate a surplus, based on budget, of (£13,210). The final out-turn position was a deficit of £82,380, giving an overall over spend of £95,590.

·         Explained that the market had 3 main streams of income:

-       stallholder fees (including the fairground)

-       park and ride ticket sales and

-       coach bookings

·         Highlighted the following:

-       The park and ride operation generated an income of (£103,880) against a budget target of (£126,710) a shortfall of £22,830.

-       The 2018 market had 180 stalls which achieved an income of (£431,250) against a budget of (£467,010). Income from stallholder fees was therefore £35,760 below budget.

-       Coach bookings continued to reduce and had done year on year.

-       Venue Hire was £47,130 which was slightly over the budget of £45,000.

-       Staff costs were £5,100 under budget

-       Contractor costs were £68,270 over the budget of £414,790

-       The refuse and stewarding costs combined exceeded budgeted costs by around £13,000

-       Additional security costs due to Policing and traffic mitigation measures introduced in 2017 were around £45,000 currently over budgeted but funded within the next Medium Term Financial Strategy (MTFS)

-       Details of Central Support Charges costs at £128,750.

·         Recommended that members note and comment on the contents of the report.

·         Invited members’ comments and questions.

Question: Members commented that the Christmas Market was amazing and believed that the £95k overspend was sending out the wrong message as the overall income was high. Members believed that as a Council this needed to be looked at and turned around as the Market brought millions into the economy and it was a successful event. Members asked whether the £95k could be written off so that the following year could make a profit and asked where the targets originated?

Response: The budget had been set a few years ago. Security of the market had a big impact on costs even though the Police gave us a discounted rate due the market being a non-profit event. If the event made a profit then the price cost of Police would increase. Social media always picked up on the loss that the market made which gave negative attention. Budgets were to be aligned for future years.

Question: Members commented on looking forward to seeing the 10 year Christmas Market Plan and asked whether the security of the market was going to have a financial impact?

Response: For the last two years the level of policing had been consistent. Nothing had been said about the resource needing to be increased. There was a lot of security at the market but this was not seen by visitors. The budget for security was to be similar for this year.

Question: Members asked whether more could be done from a communications point of view to make the market more positive and if it was worth gaining sponsorship if it would increase the policing costs?

Response: Officers had previously tried to engage Corporate Sponsorship but it became clear that this would be hard to do. Two or three years of a successful market would potentially entice sponsorship but the choice of sponsors would need to be ethical.

Comment: A reboot of the market would bring more positivity from the residents of Lincoln. The focus needed to be on what we were doing and do it well. The income the market brought into the City needed to be focused on more.

Comment: Members commented that the profit was fictitious as it was our budgets that were making the figures look negative. This was not the first year that the figure in the MTFS was causing the market a problem as it had been for the past 5 or 6 years. Officers needed to be realistic on how the figures were displayed.

Response: Officers reassured members that the two tables that were in the report were two ways of looking at the figures. There was a lot of work to be done on re-aligning the budget which would be reflected in future tables.

Question: Members asked whether extra car park income was factored into the budget?

Response: Extra car parking income was not factored into the budget. The increase in car parking could be used as a positive story.

RESOLVED that the contents of the report be noted.