Agenda item

The Cabinet considered a report of the Corporate Director of Regeneration, Economy and Growth which provided an assessment of the benefits of establishing a charitable trust to support the council’s culture service and set out recommendations and key next steps for the creation of a County Durham Culture Trust (CDCT). The report also provided an update on the development of a fundraising strategy for the Durham Light Infantry (DLI) Museum and Art Gallery in line with recommendations agreed by Cabinet in March 2022 (for copy of report, see file of minutes).

In moving the report, Councillor E Scott, Cabinet Portfolio Holder for Economy and Partnerships explained that the recommendations in the report demonstrated the commitment of the Cabinet to deliver on the promises made in relation to the plans for the DLI Collection and the former Museum and its grounds and to reopen the DLI Museum and Art Gallery with a sustainable and realistic business plan. Currently, the council as a local authority was not eligible to receive funding from many of the trusts and foundations that supported culture, art and heritage. Nor was it able to realise tax benefits from individual donations, such as Gift Aid, which could increase the value of a donation by 25%. They were also not able to realise the tax benefits which charitable organisations were able to, nor to maximise opportunities for business. As a result, it was unlikely that the full fundraising potential for the DLI project could be realised and maximised within the council's existing resource and while acting as a local authority. Although the DLI project had been the initial driver for reviewing the ability to deliver a comprehensive fundraising strategy, the outputs of this work had identified the strategic need to look more widely across the fundraising potential and needs of the culture service.

The trust had the potential to play an important role not only in providing a mechanism to access funds, grants and donations, but to provide a mechanism to maximise the value of individual giving and philanthropic donations through gift aid.

Councillor J Rowlandson, Cabinet Portfolio Holder for Resources, Investments and Assets seconded the report and explained that it was clear that the proposed County Durham Culture Trust as a culture partner would open up considerable potential to fundraise from a myriad of trusts and foundations, individuals and corporate supporters. It was also clear that without the proposed charity and using only the councils current fundraising resource would limit fund raising eligibility. The Culture Trust would allow for significant fund raising potential and targets required to support capital and revenue programmes and minimise the prudential borrowing and ongoing revenue commitment of the council.

Councillor R Bell referred to the Hampshire Culture Trust which covered the county of Hampshire. Councillor Bell said the Trust raised income in 2021/22 of around £7.71 million including £4.98 million from government grants, £176,000 from donations and £810,000 from trading activities. Councillor Bell said that this was a significant amount of money going into the County of Hampshire that was not being financed from Hampshire County Council or Winchester City Council and it would be good to look forward to the day when County Durham would hear reports of a similar nature.

The Leader of the Council highlighted that this was not only beneficial for residents, visitors and the economy in County Durham, but was one of the priorities set by the new North East Combined Authority. The area could be a real game changer for both the County and the region as a whole and on that basis, the Leader of the Council fully endorsed the creation of the trust which demonstrated a forward thinking authority, with a desire to protect public finances, whilst at the same time providing an alternative option to invest and enhance in its facilities and wider offer in this sector.

Resolved:

That the recommendations in the report be approved.