Hull City Council (HCC) and partners have embarked upon major economic and cultural regeneration programme, with the aim of becoming a premier city within the UK. Central to the city’s regeneration, delegates from the region submitted a successful bid to become the UK City of Culture in 2017 whilst remaining committed to a cost minimisation strategy. The Capital of Culture status (now City of Culture) awarded in 2008 helped Liverpool to “brush off its bleak image of social deprivation and replace it with visions of a vibrant, culturally rich, and welcoming region”. HCC hopes that the same can be true for Hull, but must make key decisions about how to most effectively achieve this goal. In particular, the case of the Granary Theatre is the current subject of heavy discussion. Owned and operated by the council, The Granary Theatre is currently in poor condition which reduces its operational and economic viability and is in need of refurbishment which is likely to cost in excess of £2 million. It is against this backdrop that options for The Granary’s future must be considered; particularly with reference to the contribution it could have to Hull’s City of Culture legacy and how different issues and choices are identified and justified. Corporate EnvironmentHull has a population of 256,406, including approximately 27,000 students at the city’s universities and colleges. The unemployment rate is significant, with a higher percentage of people in Hull receiving Job Seeker’s Allowance than anywhere else in the country (approx. 7%), and the city receives objective one status in light of the high level of poverty within the area. HCC has a substantial impact upon how local people live and work and is responsible for areas such as road maintenance and street cleaning, providing learning opportunities, helping people back into work, developing green spaces and leisure, attracting investment/jobs, and public safety. Funding comes from central government; however post-recession cuts by the Conservative-led coalition government mean that the council must look to address a range of long-term and short-term needs in the city within a restrained budget. HCC has elected councillors and after the local elections in 2012, Labour increased its majority by five seats and now has 40 out of 59 seats on the Council. Labour held all the seven seats it was defending and made five gains from the Lib-Dems. This was largely built upon historic Labour support in the city, alongside the promise to defend jobs and services from policies of the current government, which has cut council spending in the area by tens of millions of pounds since 2010. HCC has a range of development strategies within its “visions & values” statement, including: “….for Hull to become a premier European city, achieved by building a more competitive and sustainable economy, developing healthier, safer and more inclusive communities, enhancing individual life chances, and developing the cultural output of the city - all within a sustainable and environmentally sensitive fashion.”The role of the Granary Theatre has become an increasingly important topic in the context of the Council’s plans for the city, particularly with reference to the drive to keep costs down, which is balanced against the need to “raise culture up the agenda”. A major issue for The Granary Theatre is that the continuing operation of the venue is likely to incur additional expenditure over and above the existing budget committed to refurbishment, heightening the significance of this decision. Cost reduction might suggest permanent closure of the venue as a theatre facility, but would be difficult to reconcile such an action with the city’s commitment to culture, and in particular the values contained in the City of Culture of bid (inclusiveness, range, ongoing commitment, creative arts and heritage). HCC must consider whether The Granary’s contribution to Hull’s City of Culture legacy is worth the current and future cost, particularly in the context of how the chosen approach could be viewed by a range of stakeholders. In addition to the successful 2017 City of Culture bid, the city has been developing steadily since the millennium and gradually moving away from negative media perceptions. The city has been considered the ‘gateway to Europe’, being located on the east coast of England with good shipping access, is home to the world’s only submarium (The Deep), hosted the Clipper Round the World yacht race in 2009, and has seen the regeneration of Humber Street, former home to the fruit market, into a thriving arts community through the conversion of old warehouses. This cultural regeneration has coincided with new business opportunities as the Humber looks set to lead the country in the development of offshore wind. Engineering multinational corporation, Siemens, plans to create a £210m wind turbine factory on Hull’s docks which would lead to the creation of 700 jobs. This is in addition to a proposed £450m marine energy park by developer Able UK on the south bank of the Humber Estuary which was approved by the government in December 2013 and would create 4,000 local jobs. Councillors have approved a £14m Centre for Digital Innovation, opposite the Deep, which will provide a home for start-up digital design firms as well as established companies, and if plans for investment in the railway infrastructure go ahead then more businesses could be persuaded to move there. The Granary Theatre: background and location
The Granary Theatre is a 445-seat, Grade 2 listed auditorium in the centre of Hull. The criterion for listing indicates that Grade 2 buildings are those of “special interest, warranting every effort to preserve them”. English Heritage considers such historic buildings “a precious and finite asset, influencing our sense of national and regional identity”. They also consider that the long-term interests of a listed building are “often best served by putting it to good use”. The Granary Theatre is one of HCC’s Strategic Business Units (SBU) and it is important to examine the business environment that local authorities exist in, as it differs in key respects to that in which other businesses exist.
Acts of Parliament limit HCC in a different way to business organisations. HCC does not have the ability of private business to relocate, raise income (council tax) greatly through higher prices, change its product line, or diversify into emerging markets. HCC has a number of statutory duties. For example, the 1948 ‘National Assistance Act’ and 1990 ‘NHS and Community Care Act’ make local authorities responsible for the assessment and commissioning of home care and residential services for elderly people. It could be argued that diverting funds to the Granary Theatre costs HCC an opportunity to invest in such areas.
The United Kingdom has over 300 theatres and the majority are owned by local authorities or non-profit organisations. Of this number, only 40 have resident theatre companies. City Councils have a long tradition of supporting performing arts through a mix of grants to independent organisations and direct funding of performing arts venues. This establishes that the situation of HCC owning the Granary is not unusual and is in fact the industry norm.
The theatre business environment in Hull is very mature with eleven theatres and in excess of six thousand theatre seats within the city limits. The Granary provides 7.4% of available capacity. The details are illustrated below:
Empire 2374
Hull Arena 1537
Granary 445
City Hall 402
Playhouse 400
Hull Truck 300
New Theatre 250
Magic Carpet Theatre 200
Unity 182
The Donald Roy Theatre 170
Valley community theatre 150
(Approximate in some theatres as seat configuration leads to variance in capacity)
Operations Management
The Granary Theatre is a receiving house, a facility that hosts performances, and has no resident production company. The theatre’s management negotiates bespoke contracts with artists’ agents to put on productions, but the age and condition of the building mean the theatre suffers from problems with its operations and logistics which limits the scale and type of shows it can programme. Such limitations prompted recommendations for access improvements to the rear stage area in earlier business plans in 2009, but these were not acted upon at the time. Whilst the building is Grade II listed, English Heritage agrees with the proposals submitted by HCC previously that, in order to keep the building in use for the public, an extension and internal modernisation can occur. This would have to be undertaken using appropriate materials and traditional craftsmanship so that it is sympathetic to the building and surrounding area.
The Granary’s performance year runs from the middle of September to mid-July. There were 184 shows in 2012/13 split between commercial and amateur, with approximately 44,500 visitors.
Market research, both quantitative and qualitative, is undertaken by The Granary on an annual basis in order to better understand customer needs and wants. Some information related to the feedback received is included in the following sections.
There are three micro operations within the Granary Theatre:
• Front of House
• Back Stage
• Bar
Front of House (FOH)
Front of house operations are currently undertaken by 8 full time staff. FOH receive and take care of customers on arrival and during the performance. FOH administration transfers a proportion of the proceeds to the performer/their agent. Sundry support services exist, such as cleaning, painting and decorating e tc. Currently there are capacity restrictions imposed on the FOH operation as typically there are around forty seats lost per performance because of their poor state of repair.
Back Stage (BS)
Back Stage operations are carried out by two full time staff. BS prepares the
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