The Worcester City Council has decided to approve funding for the development of additional assets for the Scala Arts Centre, including the Corn Exchange and outdoor infrastructure in Angel Place.

URL: https://committee.worcester.gov.uk/ieDecisionDetails.aspx?ID=266

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Committee considered a report which sought approval to commit expenditure and let works contracts to deliver three schemes to support the successful operation of the Scala Arts Centre. The Corporate Director – Economic Development, Planning and Governance presented the report and explained that the Council submitted a renewed business case to Government under a programme called “Cultural Funding.”   In February 2025 it was announced that this had been successful in relation to three of the original ten projects: mezzanine space for food at the Corn Exchange, Angel Place outdoor space and Scala co-working space. The Cultural Funding allocation of £2.328m to Worcester City Council would therefore be used as follows:   •        Corn Exchange             £1.725m •        Scala Co-Working         £370k •        Angel Place                  £233k   The funding was awarded on the basis of the original Levelling Up submission. This meant that, for the Corn Exchange, funding was explicitly for the development of the mezzanine floor only.    In March 2025 the Council were invited by Government to make final amendments to its submitted investment plan.  In response, the Council sought to re-allocate the funding for the mezzanine floor in order to have sufficient funding available to deliver the restoration and refurbishment of the Corn Exchange including ground floor fit-out to provide food and beverage facilities to support the new Scala Arts Centre. In the revised proposal, the mezzanine space will be safeguarded for a future investment and development opportunity.   On 23 June 2025, the Government had confirmed that the amended investment plan was approved, allowing the Council to now make commitments with the allocated funding.   The report sought approval of the design work for Corn Exchange through to RIBA Stage 4 and the commissioning of Speller Metcalfe (Malvern) Ltd to add these works into the main construction contract.   In relation to the food and beverage offer, the Committee had previously given a mandate in May 2024 to undertake a procurement process for an external operator. This had been reviewed with the benefit of the experience of the recently appointed Trustees. External consultancy advice has also been sought and the proposal now was not to proceed with a single external supplier, but rather to develop a mixed model of operation involving some in-house provision and a number of relationships with external suppliers, at least initially. The preferred operating model would keep drink sales in-house as this is the strongest performing and lowest risk part of the offer. A daytime food offer will be developed in-house. The conclusion of Scala’s leadership was that offering out the whole food and beverage concession to a single franchisee would be high risk, in terms of reputation, branding and control, and will provide a low financial return.   Committee Members proceeded to debate the proposals and there was overall support for proceeding as set out in the report.   There were several questions about food and beverage, which the Corporate Director responded to.  It was explained that benchmarking has shown comparable venues have an in-house catering operation through a trading subsidiary. The balance between the daytime and evening offer was also raised. In reply, the Corporate Director highlighted the value of an in-house approach and the flexibility which comes with this.   In relation to the issue of temperature control inside building/climate mitigations, a written answer will be provided to explain the specification.   The importance of Angel Place as a public space was raised and the view was expressed that the local community should have an opportunity to comment on the design brief. It was proposed and seconded that the decision to move to RIBA stage 4 should make reference to consulting on any plans for Angel Place.   RESOLVED: That the Committee agree:   1.    to note the progress to date on the construction works for Scala Arts Centre and the establishment of a new charitable incorporated organisation as operator;   2.   to note the Government’s confirmation of Cultural Funding allocation to support the development of additional assets for Scala Arts Centre, namely the Corn Exchange, co-working space in No 6 Angel Place and outdoor infrastructure in Angel Place;   3.   in respect of these additional Scala assets, to authorise the development of design work, up to and including RIBA Stage 4, for the Corn Exchange, No 6 Angel Place and outdoor infrastructure in Angel Place in accordance with the Cultural Funding grant requirements and appropriate consultation;   4.   subject to the satisfactory conclusion of design and all other pre-construction activities, to delegate authority to the Managing Director and Corporate Director - Economic Development, Planning and Governance, in consultation with the Chair and Vice Chairs of the Committee, to use the Cultural Funding allocation to commission the requisite works packages for these additional Scala assets; and   5.   to approve the revised approach to a food and beverage operating model for Scala and Corn Exchange as set out in Section 3 and note that the new Scala charity will ultimately determine its preferred operating model and any contracts required.

Date of Decision: July 15, 2025