Glasgow Life predicts £6m income after Covid slump
THE arms-length organisation which operates culture and leisure for Scotland’s largest city has predicted an estimated annual income of £6.4 million for the coming year.
It comes after Glasgow Life lost £38m due to closures in lockdown.
The latest income prediction is contained in a report on the future of Glasgow Life and the city’s People Make Glasgow Communities programme to the Wellbeing, Empowerment, Community and Citizen Engagement City Policy Committee this week.
The £6.4m for 2021-22 is a projected target given the significant ongoing challenges that Covid continues to present.
Councillors will learn how Glasgow Life will be able to operate after reopening 93 of its venues, which range from museums and galleries to libraries and sports facilities.
Before the pandemic, Glasgow Life operated 171 venues with a budget of £115m, and was involved in and led key strategies for the city including Glasgow’s Tourism and Visitor Plan, Sport and Active
Legacy Plan and Glasgow’s Cultural Plan. However, with closures during lockdown Glasgow Life lost £38m in revenue.
In March this year, Glasgow City Council agreed to cut Glasgow Life’s annual service fee by £4.7m, some 6%, reducing it to £72.8m.
Following discussions at the Renewal Political Oversight Group earlier this year, it was agreed that Glasgow City Council would provide Glasgow Life with a guaranteed minimum income of £100m over the next four years. This is made up of the service fee of £72.8m plus an earned income target of £27.2m.
The reopening of 90-plus venues, which is more than the 61 originally planned last summer, were prioritised, in consultation with the council, on the basis of how Glasgow Life can best support the city’s social and economic recovery, as well as the regrowth of its future income.
The report states: “Budgeted income has been conservatively set at £6.4m for 2021-22. This will be generated through cultural concerts and events, occupancy, sports participation, Glasgow Club, and where possible, other external grants. Early indications are that these prudent income targets are on track to be delivered despite footfall being at levels lower than pre-pandemic.
“However, it has been agreed with Glasgow City Council that prior to any further venues and services being considered for reopening, the focus over the next few years is to generate earned income of £27.2m to remove the ongoing financial burden to the council.”
The report added: “Our core purpose is to deliver culture sport, tourism and events on behalf of the city. While these will all support social recovery and renewal post Covid-19, they also contribute directly to the city’s economic recovery, presenting Glasgow as a successful visitor and tourist destination for both leisure and business.
“Since 1983 the city has invested more than £1.3 billion in cultural and sporting infrastructure. Glasgow is the largest powerhouse of cultural production in the UK outside of London, and in the top ten Sports Cities in the world (ranked fifth).”
It was also highlighted that while all of this is a very significant economic driver for Glasgow, the scope, scale and quality of the city’s infrastructure, largely managed by Glasgow Life, is “a national asset for Scotland which is perhaps more important now than at any point in the past, given the major challenges posed by Covid-19, stalled productivity and Brexit”.
A spokesperson for Glasgow Life said: “Despite the significant and prolonged pressures we face as a result of our financial situation, we remain firmly focused on building a sustainable future for Glasgow Life and to supporting the city’s social and economic recovery. We’re working hard to reopen more than 90 venues and to maximise the funding available to us.
“This includes proactively engaging with the Scottish Government to discuss where there may be opportunities for funding support.
“Going forward, we will continue to focus on the positive contribution Glasgow Life makes to communities across the city as well as to supporting the restart of tourism and the growth of our visitor economy; reflecting our ongoing commitment to Glasgow’s mental, physical and economic wellbeing as we emerge from the various levels of Covid restrictions.
“However, in the current climate, it’s unrealistic to expect that we can raise significant additional income this year that will support the reopening of venues beyond those we have already announced.
“Whatever the post-covid landscape may bring, our mission will remain the same: to inspire every citizen and visitor to become engaged and active in a city globally renowned for culture and sport.”