Agenda item

The Commission considered a report of the Director of Corporate Resources, the purpose of which was to provide an update on the performance of Leicestershire Traded Services (LTS) during 2025/26 and the progress towards existing the School Food service in 2026.  The report also provided an update on the public engagement activity undertaken regarding the future of Beaumanor Hall.  A copy of the report marked ‘Agenda Item 12’ is filed with these minutes.

Arising from discussion, the following points were made:

(i)           Members commented that, while Beaumanor Hall was an important historic asset with considerable potential, the Council might not be best placed to operate it as a hospitality or commercial venue, particularly given the financial pressures facing the Authority and the likely future repair and maintenance costs for what was a listed building.

(ii)         The importance of consulting local residents and interested groups was emphasised, noting the passion locally for Beaumanor Hall and the need to understand the wider value of the site to communities. Members suggested that specialist hospitality and business input would be important in developing realistic options.

(iii)        Members noted that the engagement exercise undertaken was the first stage in building the business case for the future of Beaumanor Hall. Feedback from the public, local residents, businesses and relevant sectors would be used to inform options. It was acknowledged that investment would be required for as long as the Council owned the asset, although the level of investment would depend on the future operating model agreed upon.

(iv)       Members sought further information regarding annual visitor numbers to the Hall and where they came from.  A Member further asked what the  cost or subsidy to the Council was per visitor.  The Director advised that visitor data was more readily available for the education offer and that around 26,000 users came from the education sector across Leicestershire and further afield. Use of the Hall for weddings and conferences was, however, more difficult to analyse in the same way. He Director undertook to look into this and provide further details to the Commission after the meeting.

(v)         In response to a question about whether Beaumanor Hall could ever make a profit or cover its costs, the Director advised that continuing with the current model would be unlikely to achieve this. Engagement and work with business experts indicated that the site would need a more focused offer and a revised operating model.  It was noted that some shortlisted ideas were being explored and due diligence with specialists was underway. Members stressed the importance of early visibility and input in the proposed business case by scrutiny, given the current financial position of the Council. It was noted that proposals would likely be presented to the Adults and Cultural Services Overview and Scrutiny Committee in the Autumn but that the Scrutiny Commissioners would be invited to participate in that discussion.

(vi)       The Lead Member for Resources acknowledged that the financial position was challenging but stated that the Council owed it to the County to consider all options properly before determining the future of the Hall. Early business modelling had identified potential opportunities, including use of the wider site, possible commercial uses, accommodation linked to weddings and events, and options that might support public-private partnership arrangements.

(vii)      Some members expressed disappointment at the decision to cease the School Food Service, referring to its quality and the fact that it had previously generated a surplus. It was, however, acknowledged that the service operated in a challenging environment, with schools increasingly making decisions based on affordability and price and that whilst there had been some improvement during this financial year, the likelihood that more schools would seek alternative provision remained making the Service unsustainable for the long term.

(viii)    In response to questions regarding staff redundancies arising from the closure of the Service, it was noted that out of around 800 frontline staff, the maximum number of redundancies was expected to be two, with work continuing to support redeployment or transfer to new providers. In relation to management and administrative posts, a maximum of 11 redundancies was anticipated, with redeployment support continuing. The Director advised that the final cost of redundancies could not be confirmed until processes had concluded.

RESOLVED:

(a)  That the performance of Leicestershire Traded Services (LTS) during 2025/26 and progress towards exiting the School Food Service in 2026 be noted;

(b)  That the Director be requested to provide further information on Beaumanor Hall visitor numbers and the cost or subsidy to the Council was per visitor;

(c)   That the Scrutiny Commissioners be invited to join consideration of the proposed business case for Beaumanor Hall item when this was considered by the Adults and Cultural Services Overview and Scrutiny Committee.