Decision details
The Future Business Model for the Shugborough Estate
Decision Maker: Cabinet
Decision status: Decision Confirmed following Call In
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
To report on the outcome of Staffordshire
County Council’s negotiations with the National Trust to
surrender the lease for the Shugborough Estate and to make specific
recommendations to surrender the lease.
Decisions:
(Exemption paragraph 3)
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“The Shugborough estate is a valued and important part of Staffordshire’s heritage. During 2015 we began detailed discussions with the National Trust to facilitate the surrender of the lease and we have now agreed in principle that the county council does surrender the lease and the management and delivery of the Shugborough Estate returns to the National Trust on 31st October 2016.
Surrendering the lease will secure the future of the Shugborough Estate for the people of Staffordshire and it will ensure the Estate receives appropriate levels of investment which will secure its reputation as a flagship visitor attraction, which adds real value to the local economy.”
Mark Winnington, Cabinet Member for Economy, Environment and Transport
“This agreement will save £35m of taxpayers’ money over the next 50 years. It will enable us to invest more in supporting communities to be active and independent, and caring for the most vulnerable in society.
This agreement will bring great benefits for the Shugborough Estate, Staffordshire residents and the National Trust; it is also the best option to secure the future of the Shugborough Estate.”
Ian Parry, Deputy Leader and Cabinet Member for Strategy, Finance and Corporate Issues
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Reasons for the Decision – To consider the outcome of the County Council’s negotiations with the National Trust in respect of the proposed surrender of the lease of the Shugborough Estate.
Decision – (a) That Staffordshire County Council surrenders the lease made between the National Trust and Staffordshire County Council dated 5th May 1966 (“Lease”) which they currently hold on the Shugborough Estate.
(b) That to effect the surrender, Staffordshire County Council:
(i) Makes a payment of £20.5 million pounds (net of VAT), in three equal parts (£6.83million pounds), over three years to the National Trust.
(ii) Transfers the legal estate of 26 hectares of land (shown coloured yellow on Appendix C to the report) to the National Trust and enter into an Asset Transfer Agreement with the National Trust to transfer the relevant assets from Staffordshire County Council to the National Trust.
(iii) Grants a right of first refusal to the National Trust for a period of 50 years from the date of the surrender for the National Trust to purchase the land shown edged green (on Appendix D to the report) at a price to be agreed if Staffordshire County Council ever decides to sell or lease all or part of the land shown edged green.
(c) That Staffordshire County Council agrees to enter into two leases for the Walled Garden and the County Museum on terms to be agreed.
(d) That the final decision on the above be delegated to the Cabinet Members for Economy, Environment and the Deputy Leader and Cabinet Member for Strategy, Finance and Corporate Issues in conjunction with the Director for Finance and Resources.
(e) That Staffordshire County Council agrees to work in partnership with the National Trust to ensure a smooth transition of the Shugborough Estate by November 2016.
(f) That once the proposals have been approved by the National Trust Board, the report considered by Cabinet be made publically available.
Philip Atkins
Leader of the County Council
Report author: Janene Cox OBE
Publication date: 21/01/2016
Date of decision: 20/01/2016
Decided at meeting: 20/01/2016 - Cabinet
Effective from: 27/01/2016
This decision has been called in by:
- Susan Woodward who writes I wish to call in this decision for the reasons stated by Sheree Peaple."
- Ron Clarke who writes I wish to call in the decision to surrender the Shugborough lease due to lack of transparency and scrutiny, a lot more information is needed."
- Sheree Peaple who writes The decision notice makes it clear that the County Council will be paying £6.8 million a year in 2017, 2018 and 2019 in order to surrender the lease. It is anticipated that the saving per annum will be £0.7 million from 2020 onwards. It is unclear how this provides value for money for the Council. A more urgent issue is the question of where the funds are to make these payments, as they are not included in the recently presented Medium Term Financial Strategy. How can the Cabinet justify such payments when the Council is facing swingeing cuts and budget deficits? Despite the fact that the future of the County's Countryside Estate has been discussed in detail over the past few months, including review at Prosperous Staffordshire Select Committee, Shugborough has not at any time been included in these discussions. The decision information indicates that the council will enter into two further leases, on conditions still to be negotiated, for the walled garden and the county museum. Further information regarding these matters needs to be provided. This is a major decision with significant financial implications and yet it does not appear to have been brought before any of the Council's select committees nor subjected to any other relevant form of scrutiny. "
- Charlotte Atkins who writes for the same reasons identified by Sheree Peaple"
- Shelagh Mary McKiernan who writes "The decision notice makes it clear that the County Council will be paying £6.8 million a year in 2017, 2018 and 2019 in order to surrender the lease. It is anticipated that the saving per annum will be £0.7 million from 2020 onwards. It is unclear how this provides value for money for the Council. A more urgent issue is the question of where the funds are to make these payments, as they are not included in the recently presented Medium Term Financial Strategy. How can the Cabinet justify such payments when the Council is facing swingeing cuts and budget deficits? Despite the fact that the future of the County's Countryside Estate has been discussed in detail over the past few months, including review at Prosperous Staffordshire Select Committee, Shugborough has not at any time been included in these discussions. The decision information indicates that the council will enter into two further leases, on conditions still to be negotiated, for the walled garden and the county museum. Further information regarding these matters needs to be provided. This is a major decision with significant financial implications and yet it does not appear to have been brought before any of the Council's select committees nor subjected to any other relevant form of scrutiny." "
- Christine Mitchell who writes I wish to add my name to the Call –In on the Shugborough decision by Cabinet for the same reasons given by Sheree Peaple."
- Caroline Wood who writes I wish to call in the item on Shugborough Hall as I believe there hasn’t been sufficient scrutiny and support Sheree Peaple’s points in her ‘call-in’."
- Peter Davies who writes I am calling-in the decision for the reasons given by Councillor Sheree Peaple."
- Trish Rowlands who writes I wish to call in the Cabinet decision regarding the surrender of the Shugborough lease for the reasons cited by Sheree Peaple."
- Margaret Astle who writes The decision notice makes it clear that the County Council will be paying £6.8 million a year in 2017, 2018 and 2019 in order to surrender the lease. It is anticipated that the saving per annum will be £0.7 million from 2020 onwards. It is unclear how this provides value for money for the Council. A more urgent issue is the question of where the funds are to make these payments, as they are not included in the recently presented Medium Term Financial Strategy. How can the Cabinet justify such payments when the Council is facing swingeing cuts and budget deficits? Despite the fact that the future of the County's Countryside Estate has been discussed in detail over the past few months, including review at Prosperous Staffordshire Select Committee, Shugborough has not at any time been included in these discussions. The decision information indicates that the council will enter into two further leases, on conditions still to be negotiated, for the walled garden and the county museum. Further information regarding these matters needs to be provided. This is a major decision with significant financial implications and yet it does not appear to have been brought before any of the Council's select committees nor subjected to any other relevant form of scrutiny." "
Accompanying Documents:
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