Issue details

Notice of General Exception - Change of Funding Mechanism for Croydon Music & Arts : (Approval required to join Southwest London Music Limited and appoint a Director)

Croydon Music & Arts (CMA) is the council’s service for music and arts education. It relies on core funding from the DfE (£0.521m next year), distributed by Arts Council England (ACE). This funding supports a turnover of around £1.2m and is essential for contributing to service overheads, as well as support for schools and heavily subsidised tuition and other opportunities for disadvantaged children and young people. It is unlikely the service could survive without this funding. Following a national funding restructure, ACE has decided that from September 2024 this funding will go to a single sub-regional Hub Lead Organisation for South West London covering seven boroughs, including Croydon. These seven boroughs have a history of collaborating informally, and are willing to work together under a more formal arrangement, but they require a mechanism for receiving and distributing the DfE/ ACE grant.

The seven music services have agreed to create a new Special Purpose Vehicle (SPV) company, Southwest London Music Limited, as the lead body for applying for the DfE/ACE funding. The sole purpose of the company is to submit the revised bid, and act as the body that will receive and distribute the core funding according to an existing funding formula. This report seeks approval for Croydon Council to join the company and nominate a suitable director on the company board.

Decision type: Key

Reason Key: Expenditure > £1,000,000;

Decision status: For Determination

Wards affected: (All Wards);

Notice of proposed decision first published: 27/06/2024

This decision will be taken under urgency procedures.

Reason for urgency:
An announcement from ACE with any conditions attached is expected on 8th July. Directors of SWLM Ltd. will finalise existing draft contracts for each borough as soon as possible after that date. Croydon could be disadvantaged by not having representation on the board, resulting in loss of income. All contracts need to be agreed quickly, for activity to be planned in September, so other partners will not be willing to delay for Croydon.

Decision due: Not before 8th Jul 2024 by Executive Mayor

Lead member: Cabinet Member for Communities and Culture

Lead director: Corporate Director of Sustainable Communities, Regeneration & Economic Recovery

Department: Sustainable Communities, Regeneration & Economic Recovery Directorate

Contact: Jon Regan, Co-Head of Croydon Music & Arts Email: Jon.regan@croydon.gov.uk Email: jon.regan@croydon.gov.uk.