Agenda item

Recommendations

 

i)               To progress termination of SMCCT’s Service Level Agreement and bring the museum and gallery service back into direct Council management within the Culture & Archives Service, as set out in Option One.

ii)              To delegate authority to agree the final terms of and the authority to enter into these agreements with SMCCT to the Corporate Director – Resources in consultation with the Corporate Director – Community and Development and the Assistant Chief Executive Legal and Democratic.

iii)             To approve a transition budget of £56k to support the delivery of a safe and legal transfer of services, funded from Corporate Reserves.

 

Considered a report of the Corporate Director of Community Development which outlined options for the future management of the collections and gallery/museums buildings currently managed by Scarborough Museum, Creative & Cultural Trust (SMCCT).

 

Before the Executive Member for Culture, Arts and Housing, Councillor Simon Myers presented the report, it was noted that correspondence in relation to the report had been received since publication of the agenda from the Rotunda Geology Group, the Principal of Scarborough Sixth Form College, and Dr Jane Mee. Councillor Myers advised that the report proposed that the Executive accepted the request by the Trustees of SMCCT for the council to progress termination of SMCCT’s Service Level Agreement and bring the museum and gallery service back into direct council management.  By virtue of his Executive portfolio, Councillor Myers commented that he represented North Yorkshire Council on the SMCCT Board of Trustees but had recused himself from involvement in the Board’s decision to make this formal request to the council.  He commended the dedication and talent of the Board who had done their best to deliver the museum and gallery service in Scarborough, and had thought very carefully about the future delivery of the service.

 

Two public statements were then presented to the Executive as follows:

 

Marie Woods, Chief Executive, Land of Iron Mining Museum

 

I am Marie Woods BA (Hons) MA, a heritage professional with over 15 years’ experience of working within the heritage sector. I have worked in local authority museums and national museums. I am the Director of Heritage Adventures Ltd, and am currently employed as CEO and Mine Manager at Land of Iron, an independent industrial museum in the North East.

I am here today in an independent capacity, but with the full disclosure of having been a Trustee of Scarborough Museum and Galleries.

 

I wish to express my reasoned opposition to the proposal of handing over the management and governance of Scarborough Museum and Galleries to North Yorkshire Council.

 

1. Financial and Operational Concerns

According to the charity’s only available financial statements, Scarborough Museum and Galleries had managed its resources responsibly, with clear accountability through the Charity Commission’s annual reports.

 

The 2022/23 Report and audited accounts for SMCCT, where I am a named Trustee, and the then Secretary, Andrew Clay, states:

 “Financial performance in the year was satisfactory, resulting in a deficit of £49,933 and total reserves at the year-end standing at £384,136.” (Page 6)

 

 In the 2022/23 SMCCT Report the Auditor states:

 “we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue” (page 8)

 

In 2022/23 the SLA was £426,660 which is noted under Charitable Activities within the accounts. The SLA for 2023/24 was raised in a Board meeting and a figure of £490,000 was mentioned as the income for the next financial year. The confirmed amount from the Executive Report states the actual figure to be £491,100.

Going into the financial year 2023/24 with reserves of £384,136 and an SLA income of £491,100, SMCCT placed the organisation in a viable position. I am unsure as to why the position of the Trust is now deemed to be non-viable.

 

Regardless of the above, local authority management can also lead to complex financial entanglements, particularly when it comes to funding and resource allocation, something I have first-hand experience of. Local government finances are subject to changes in political leadership and public funding priorities, which can result in cuts to budgets, potentially undermining the museum's ability to sustain its operations and care for its collections. Therefore, also jeopardising its earned Accreditation status.

 

The involvement of North Yorkshire Council, with its broader financial constraints, could create an environment where funding is unpredictable, and valuable resources—both financial and in terms of staffing—may be reduced or stretched to way beyond its capacity. This could negatively affect the museum's ability to continue delivering high-quality exhibitions, educational programming, and community engagement.

 

2. Loss of Community Influence and Engagement 

Scarborough Museum and Galleries operation as a local charity enables the community to have a voice in the museum’s activities. Partner organisations (as can be seen in the capacity of the North Yorkshire Coast Heritage Forum where SMG has been a valued and consistent member since its formation), volunteers, and residents have the opportunity to directly influence the direction of the museum, ensuring that its offerings reflect and meet local interests and needs. The proposed handover to North Yorkshire Council raises concerns that such community involvement could be sidelined, as the Council may not prioritise the needs of Scarborough’s population or help to maintain the cultural identity which the museum has sought to preserve and promote over the years.

 

3. Lack of Transparency and Consultation

There has been little transparent communication regarding the full details of this proposal, including how it will impact the museum’s staff, collections, and educational initiatives. I urge the Board to undertake a more robust consultation process with the local community, museum patrons, and relevant stakeholders before proceeding further. It is critical that the voices of those who use and value the museum are heard, as they are integral to its continued success and relevance.

 

In conclusion, I believe that the proposed transfer of Scarborough Museum and Galleries to North Yorkshire Council requires careful reconsideration. The potential impact on the museum’s accreditation status, financial stability, and community engagement should not be underestimated.

 

Thank you.

 

John Oxley MBE, FSA

 

Thank you for this opportunity to speak to the Executive about Agenda item 13 concerning the future of Scarborough Museums and Galleries.

 

I am John Oxley, MBE FSA, a professional archaeologist and heritage practitioner with over 40 years’ experience of working as an archaeologist in local authority museum service (Southampton), as City Archaeologist with City of York Council and now as an independent archaeological consultant. I was awarded an MBE in 2001 for services to Heritage. I am also Co-Director of Big Ideas By The Sea, an annual independent festival held in May in Scarborough. My representation here is personal and is not related to Big Ideas By The Sea.

 

Over the course of my career, I have both observed and worked with the two main governance structures for museum and gallery services: independent Charitable Trusts and in-house Local Authority Museum and Gallery Services.

 

It is my professional view that a well-led, dynamic independent Charitable Trust that works collaboratively with its local communities represents by far the best model to provide a museum and gallery service.

 

A well-led, dynamic independent Charitable Trust is able to access a wider range of funds than a Local Authority museum service; it is able to make decisions much more quickly, given its leaner management and governance structure; it is, or it should be, deeply embedded in and supported by the communities it serves; and it does not have to compete directly against the financial demands of statutory services within highly constrained Local Authority budgets subject to constant cuts.

 

I am therefore opposed to the termination of the Service Level Agreement (SLA) between SMCCT and North Yorkshire Council and the transfer of the service back into the Local Authority.

 

The Report does not provide reasonable justification for this termination and transfer. It refers elliptically to the “deteriorating financial position” of SMCCT (para 3.5), it infers that SMCCT may “become unviable” (Para 4.1). However, no evidence is provided to support these statements in the public report. The exclusion of Appendix A (Restricted Enclosure 37 Document 13/2) from the Public Record is therefore unfortunate. This is, after all, public money.

 

Indeed, a rapid review of the information in the public domain does not suggest either unviability or a deteriorating financial situation.

 

Para 9.1 of the Executive Report refers to the Local Authority contribution to SMCCT under the SLA. In 2024/25 the payment to SMCCT is £491,100; in 2025/26 it is projected to be £503,377. These are substantial sums of money representing Local Authority support that many independent Charitable Trusts would consider a guarantee of future financial viability. Moreover, the SLA runs to 2038, increasing year on year by the same percentage increase in CPI, giving SMCCT a significant guaranteed inflation-related income. One could see the termination of the SLA as being in the financial interests of the Local Authority, as termination removes this ongoing legal obligation to fund the museum. Future support for museums and galleries in Scarborough once within North Yorkshire Council will become discretionary.

 

The last published Accounts for SMCCT are for financial year 2022/23 and are available on the Charities Commission website (https://register-of-charities.charitycommission.gov.uk/en/charity-search/-/charity-details/4009238/accounts-and-annual-returns) . The reporting and submission of accounts for 2023/24 is now 40 days overdue so there is no public information available at present for the last financial year, 2023/24.

 

The 2022/23 Report and audited accounts for SMCCT are dated 27th March 2024 – almost 12 months to the day of this Executive meeting.

 

In the SMCCT Report, the then Secretary, Andrew Clay, states:

 

“Financial performance in the year was satisfactory, resulting in a deficit of £49,933 and total reserves at the year-end standing at £384,136.” (Page 6)

 

In the 2022/23 SMCCT Report the Auditor states:

 

“we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue” (page 8)

 

In 2022/23 the SLA was £426,660. The SLA for 2023/24 is not in the public domain at this time, but it will be between £426660 (22/23) and £491,100 (24/25).

Going into the financial year 2023/24 with reserves of £384,136 and an SLA income of between £426,660 and £491,100, SMCCT looks to have been in a healthy position. In all reported respects, the outlook for SMCCT looked rosy.

 

So, I ask the questions: why is SMCCT unviable? Where is the evidence? What has happened since the 2022/23 Report and Accounts to make the Trustees request that the SLA be terminated? Where is the evidence to support the conclusions of the author of the Executive Report that to:

 

“develop and implement a recovery plan with the Trust … would require significant financial and management support [from the Council] … and is not considered a viable option at this time.”

 

Furthermore, the Executive Report makes no reference to any consultation with the wider heritage and other communities in Scarborough. How do we want our Museum and Gallery Services run? We should all be consulted.

 

Finally, I reiterate my view that a well-led, dynamic, independent Charitable Trust working collaboratively with its local communities, funded through the SLA until 2038 represents by far the best model to provide a museum and gallery service in Scarborough. If not, we need to know why not.

 

Thank you Chair.

 

Local Division member, Councillor Rich Maw then addressed the meeting highlighting the importance of the museum and galleries to local residents and beyond and raising concerns that bringing the service back into direct council management may lead to a reduction in budget, a diminution of service provision, and loss of local control and influence.  Councillor Maw sought a commitment from the Executive Member that he would continue to work with local groups including the Rotunda Geology Group to ensure they had a say in the delivery of the service.  He then cited a letter from the Rotunda Geology Group which enquired what proposals North Yorkshire Council had in place to recognise the cultural, historic, and scientific importance of the national treasure of the Rotunda Museum when the council took over the management of the service.  Lastly, Councillor Maw expressed the wish that staff’s jobs be safeguarded in their TUPE transfer to the council.

 

Councillor Myers then responded to these submissions.  He began by making the clear distinction that the Executive was not the Trustees but had to respond in the best way possible to the Trustees’ request.  He reiterated that the council had been extremely supportive of Trustees and staff and that welfare of staff was paramount as reflected in the TUPE proposal.  The council had worked with SMCCT to ensure they retained their accreditation.  Councillor Myers continued that he was a great believer in the delivery of museum and gallery services by the local authority as exemplified by the recent success of the Craven Museum.  The council’s Culture and Archives Service was committed to delivering social value through the service, particularly in deprived communities where great benefits could be realised.  He acknowledged too the service’s value to the local visitor economy.  He fully supported the establishment of a representative group of interested parties in Scarborough which could draw on the expertise and talents of the local community, citing the successful example of the Friends of the Mercer Gallery in Harrogate.  In light of the Trustees’ request, he felt that Option One was the inevitable decision to protect the collections and in the interests of both residents and visitors.

 

In response, both public speakers welcomed the Executive Member’s commitment to working with local stakeholders to achieve the best outcomes for the service.

 

Other Executive members commented on the report, noting that some of the points made by the public speakers would be better directed at the SMCCT, and underlining the potential benefits to be gained from local authority control, for example, in governance and diversification of offer.

 

Resolved (unanimously) that the Executive:

i)               progress termination of SMCCT’s Service Level Agreement and bring the museum and gallery service back into direct Council management within the Culture and Archives Service, as set out in Option One.

ii)              delegate authority to agree the final terms of and the authority to enter into these agreements with SMCCT to the Corporate Director – Resources in consultation with the Corporate Director – Community and Development and the Assistant Chief Executive Legal and Democratic.

iii)             approve a transition budget of £56k to support the delivery of a safe and legal transfer of services, funded from Corporate Reserves.

 

Reasons for recommendations

To provide an efficient option for the ongoing management of Scarborough’s Museum and Gallery service which minimises service disruption and financial risk for the Council.