Agenda item

The Director for People and Communities to submit a report providing a breakdown of the costs associated with running the Melton Community Lottery.

The Committee received a report on the Melton Community Lottery from the People Manager.

 

Councillor Alison Freer-Jones, Portfolio Holder for Corporate Governance, Access and Engagement provided a brief overview of the report, the purpose of which was to provide a breakdown of the costs associated with running the Lottery.

 

Councillor Free-Jones noted the considerable work that the People Manager had put into writing the report and ensuring that issues raised by Members had been addressed.  She also thanked the Committee for considering this item.

 

Councillor Freer-Jones commented that it was extremely worthwhile for the Council to help community groups to raise money for their initiatives through the Lottery.  There had been a downturn of ticket sales but she hoped that this could be improved upon and that the Council could make a success of the Lottery.

 

Members discussed the additional information and recommendations, proposed by the Chair, which had been circulated at the start of the meeting.  The Chair confirmed that these were suggestions for the Committee to consider and discuss further.

 

A brief summary of the Chair’s suggested recommendations is provided below:

 

·         That Cabinet consider ending the Lottery, as soon as possible.  Reasons

                      i.        The Budget Books indicated that since 2016, the Lottery had resulted in a large expenditure chargeable to Council Tax

                    ii.        Membership was expected to be approximately 2000 to date.  However, current membership was 293 and this continued to decrease

 

·         That Cabinet consider continuation of the Lottery for a period of 12 months, in order to establish whether it is possible to raise a similar income to that which was predicted in 2016 when the Lottery started.

Reasons

                      i.        Other local authorities were raising substantial amounts, which supported their Good Causes.  This Council should be able to do the same.

                    ii.        A successful lottery would enhance the Council’s reputation and the reputation of Melton as a good place to live.

                   iii.        A successful lottery (with a minimum of annual ticket sales of £88,400, resulting in £53,040 to Good Causes) could make a significant difference to the Council’s financial position.

                   iv.        Many small Good Causes, such as local sports clubs across the Borough were already raising useful amounts to help cover their costs, which helped to keep residents active and assist social cohesion.

 

·         That a full assessment be made on the viability of continuing the Lottery.  An Action Plan to be put in place should continuation be found viable, assistance be provided to help ‘Good Causes’ to increase ticket sales and that the management and administration Lottery costs be fully charged to the Lottery, in accordance with Council policy, as stated in the Budget Book.

Reason:

                     i.        There was a need for the smaller Good Causes to receive more help, information etc.

 

During discussion the following points were noted:

 

      i.        The £5k cost to the Council to support the Lottery (as estimated in the Business Case, detailed at Appendix A of the report) was sufficient.  However, during the first and second years of the Lottery, the Council had incurred unforeseen support costs i.e. for the Lottery’s ‘first birthday’ and in making arrangements for a new Licence Holder.  Support for the Lottery usually included raising and authorising monthly invoices, Regulatory Returns to the Gambling Commission and other financial work, which was undertaken annually.  Ad hoc administration was also required when a new Good Cause registered.

    ii.        Members acknowledged the Council’s conflicting priorities, capacity and resource issues but emphasised that good quality promotion was vital to increase Lottery membership, drive ticket sales, increase revenue and ensure the success of the Lottery.

   iii.        Members noted that once the downturn had been identified in 2018, it had been agreed to implement a Task and Finish Group to review the performance of the Lottery.  There had been several attempts to implement the Group but the People Manager had been unable to secure enough Member support to begin this review at the time.  However, additional staffing costs had been allocated to the budget in anticipation of this review, which had distorted the support costs for that year.  The Director for Governance and Regulatory Services suggested that the previous governance system may have contributed to lack of engagement in reviewing this area.

   iv.        Currently, the Lottery was not cost effective due to the fall in membership numbers.  However, it did contribute to the ‘Community Grants pot’

    v.        Members noted that the report focussed on charges rather than performance but highlighted that the success of the Lottery depended greatly on appropriate funding and support.

   vi.        Part D1 of the Business Case, which detailed project management and delivery was highlighted.  The Lottery budget had remained the same since it started in 2016 and no additional staff had been recruited to support the Lottery at that time.  Instead, the additional support work had been absorbed into the workloads of those already employed by the Council.

  vii.        During discussion it was noted that the Lottery was of benefit to small causes and the importance of active promotion during any period of continuation was reiterated.

 

[The meeting adjourned at 19:50]

 

[The meeting reconvened  at 20:00]

 

Following discussion, Councillor Child proposed the recommendation below, which was seconded by Councillor Browne.

 

RESOLVED

 

Scrutiny Committee RECOMMENDED to Cabinet that

 

1)    The Lottery should cease unless in 12 months time the numbers, through active promotion by all parties are at least at the same level as at 31 December 2018 i.e. 448 (this figure represents the highest number of members recorded).

 

2)    A report be presented to Scrutiny after 12 months to review and make a recommendation to Cabinet.