Agenda and draft minutes

To note the appointment of Cllr Linda Woodings as Chair of the Committee for the remainder of the municipal year 2024/25.

To apoint the Vice Chair of the Companies Governance Executive Committee for the municipal year 2024/25.

The Committee noted that Councillor Linda Woodings had been appointed as Chair of the Committee for the remainder of the municipal year 2024/25.

The Committee appointed Councillor Ethan Radford as Vice Chair of the Committee for the remainder of the municipal year 2024/25.

Cllr Ethan Radford – other Council business (items 52-63)

None.

To confirm the minutes of the meeting held on 11 February 2025.

The minutes of the meeting held on 11 February 2025 were confirmed as an accurate record and signed by the Chair.

For noting and discussion.

The Committee noted the Work Programme.

Presentation by NIC representatives.

This item does not contain any decisions eligible for call-in.

Martin Ingham, Chief Executive Officer of Nottingham Ice Centre Ltd, presented the business plan. The following points were highlighted:

a)  2024/25 was a year of contrasts. It was a relatively ‘soft’ year for the Arena. individual shows have a relatively large impact on the finances, which have been affected by postponements and cancellations, which have impacted on arenas across the country. Savings from redundancies enabled the company to turn around the financial projections, leading to a break-even or a small loss. On the other hand, catering and National Merchandise had a strong year, and the 2025/26 year is looking strong for the Arena;

b)  NIC makes a significant contribution to the city, with a gross value added of around £47m per annum, a net contribution to the City Council’s finances, and providing around 500 jobs for city residents. The social and health impact of NIC’s sports provision, and the cultural and reputational impact of NIC’s work in the city, are also important benefits;

c)  the headwinds to consider are primarily around cost inflation of staffing. NIC is an employee-heavy business, and it is disproportionately affected by changes in the National Minimum Wage and the abolition of bandings. National Insurance changes are also significant due to the large proportion of casual staff, with the change of thresholds meaning more casual posts require employer’s contributions;

d)  additionally, business rates are still a challenge due to the winding down of transitional relief from Covid-19. The government’s approach of trying to protect smaller businesses by surcharging larger businesses is affecting NIC, who are lobbying to address the anomaly. Food and beverage inflation is significant, as are increases to ticket prices, particularly given ongoing ‘cost of living’ concerns. There are specific industry-factors too, such as shows that previously would have booked arenas now booking stadia, and growing competition from new venues;

e)  there are significant opportunities to consider also. The 25^th anniversary of NIC presents a huge marketing opportunity, as will the Winter Olympics in 2026, particular given British ice dancers won bronze medals in the world championships recently. Developments in catering enable reduced costs through ‘frictionless’ bars, and the year will see the expansion of the Spotlight Bar and Restaurant as well as additional mobile units. A business rates appeal is pending, and the company is hopeful of an outcome;

f)  2025/26 is forecast to be a strong year for the Arena, driven by a record number of shows for music and sports, and a strong year for comedy;

g)  1^st April 2025 is the 25^th anniversary of the NIC, which over its history has held 3,000 events, served 20 million customers, and contributed over £1bn of added value into the city, on an initial investment by the City Council of £16m;

h)  various special events are planned to make NIC’s 25^th year, including a city dressing on the 22^nd April, and the People’s Picture Project, through which an artist has been engaged to create a collage of photographs from venue attendees to be placed in the foyer. Torvill and Dean’s farewell tour is taking place this year, including their final ever show. In June and July, every child in Nottingham City schools will be given the opportunity to skate for free, and in September the opportunity will be extended to youth groups in Nottinghamshire County. In July and August 2026 the anniversary will be marked by an exhibition.

In the discussion which followed, and in response to questions from the Committee, the following points were highlighted:

i)  the staffing numbers appear higher than other arenas because a lot of services have been brought in-house, including security and catering staff. Motorpoint is the only arena in the UK with its own security staff;

j)  NIC is regarded as a good employer by most staff. Retention rates are good, and the company has improved its onboarding process. The cost of employing a member of staff is significant, so improvements in the initial recruitment process are crucial;

k)  the vacancies and redundancies have had an impact across the whole of the business. The company is looking to recruit back into some of the vacant posts in view of the busy Arena year. There is an opportunity to reshape the employment structure, in a way that avoids fixed costs and future redundancies.

The Committee noted the Nottingham Ice Centre Limited business plan – public presentation.

To consider excluding the public from the meeting during the consideration of the following item in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Committee decided to exclude the public from the meeting during consideration of the remaining agenda items in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighed the public interest in disclosing the information, as defined in Paragraph 3 of Part 1 of Schedule 12A to the Act.

Report of Corporate Director for Communities, Environment and Resident Services.

This item does not contain any decisions eligible for call-in.

Martin Ingham, Chief Executive Officer of Nottingham Ice Centre, gave the exempt business plan presentation. Details of the presentation and subsequent discussion are set out in the exempt minute.

The Committee noted the contents of the exempt presentation.

To consider readmitting the public for the following item.

The Committee readmitted the public for the following item.

Presentation by Futures representatives.

This item does not contain any decisions eligible for call-in.

After an introduction by Beverley Gouveia, Shareholder Representative, Jennie Willock, Chief Executive Officer of Futures, presented the business plan. The following points were highlighted:

a)  this year Futures is celebrating its 30^th anniversary as a not-for-profit social enterprise jointly owned by Nottingham City and Nottinghamshire County Councils. Taking on many identities, including as Connexions during the 2000’s, the company has developed in response to opportunities and challenges, particularly as its local authority owners have had diminishing control of skills and employment funding;

b)  its purpose and values are key, and are the reason the councils continue to own and work with Futures. The company has the ability to blend large nationally commissioned programmes with more local initiatives, enabling a customised path for its customers. Futures engages in a range of activity, including careers and education guidance, targeted support for those most at need, and skills development;

c)  this approach makes Futures well-placed to tackle complexity, with the understanding that one single intervention will not necessarily help people back into work overnight. Instead, the coordination of multiple interventions. across a holistic journey is key;

d)  strong work has been done on skills, working with Further Education colleges and some more specialist providers. Futures’ expertise is in entry level 1 provision, and some level 2, but this helps to prepare people for level 3 and on wards;

e)  the business plan is built around four strategic objectives:

  i.  delivery and impact, with high quality guidance and training, meeting output measures required by project commissioners;

  ii.  our people and culture, with continual investment in the development of staff, as the quality of the service is determined by the quality of advisors and tutors;

  iii.  delivering excellence, in terms of the company’s systems and processes, shaped around Ofsted-style frameworks;

  iv.  financial sustainability, to deliver a service that is value-for-money but which can generate surpluses to reinvest in the service.

f)  Within these there are three key themes:

  i.  simplicity, with a focus on the core aims and expertise of the organisation;

  ii.  a higher performance culture;

  iii.  customer-centricity, putting the customer journey at the heart of the company’s activity.

In the discussion which followed, and in response to questions from the Committee, the following points were highlighted:

g)  the not-for-profit sector is facing a number of difficulties. The UK Shared Prosperity Fund, which replaced the European Social Fund, has recently been reduced by 40%. At the same time, the National Insurance increase has hit the sector, and costs have increased significantly while funding bands have not increased. For many in the sector, it has been the most difficult budget round of their careers;

h)  Futures has supported around 50-60,000 customers every year, with around 25-30,000 of that based in the East Midlands. The level of support varies from the light-touch National Careers Service, to more intensive kinds of engagement. There has been a positive uplift this year in terms of job outcomes, with good customer progress;

i)  there are emerging challenges with the job market, including changes to employment legislation and the National Insurance increase and banding changes, which will have a detrimental impact on the job prospects of those Futures works with. It will be more expensive to employ, for example, parents returning to the job market seeking part-time hours. Additionally, in a much more competitive job market, employers will be more wary of employing individuals with health needs or training needs, given the increased cost;

j)  on a national level the number of young people who are not in education, employment, or training (NEETs) has grown, with around a million 16-24 year olds economically inactive. The most significant barrier is growing mental health issues. The Youth Guarantee will address some of that challenge, but is relatively small compared to the scale of the problem.

The Committee noted the Futures Advice, Skills and Employment Limited business plan – public presentation.

To consider excluding the public from the meeting during the consideration of the following items in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Committee decided to exclude the public from the meeting during consideration of the remaining agenda items in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighed the public interest in disclosing the information, as defined in Paragraph 3 of Part 1 of Schedule 12A to the Act.

Report of Corporate Director for Growth and City Development.

This item does not contain any decisions eligible for call-in.

Jennie Willock, Chief Executive Officer of Futures, gave the exempt business plan presentation. Details of the presentation and subsequent discussion are set out in the exempt minute.

The Committee noted the contents of the exempt presentation.

Report of Corporate Director for Finance and Resources.

Richard Beckett, Shareholder Representative, presented the update on the Strategic Review for Nottingham City Transport Limited. Details of the report and subsequent discussion are set out in the exempt minute.

Resolved to approve the recommendations as set out in the exempt report.

Reasons for decisions:

• as set out in the exempt report.

Other options considered:

• as set out in the exempt report.

To consider readmitting the public for the following item.

The Committee readmitted the public for the following item.

Presentation by NCT representatives.

This item does not contain any decisions eligible for call-in.

Dave Astill, Managing Director of Nottingham City Transport, presented the business plan. The following points were highlighted:

a)  NCT, under various guises, has been in public ownership since 1897 – 2025 is its 128^th year. Only eight municipal bus companies operate in the UK today, including five in England, of which NCT is the largest in England. NCT is the only municipal bus company in a situation to pay a dividend to the local authority as shareholder;

b)  the company has a flat structure, employing mainly bus drivers. Of 1,120 employees, 820 are drivers. Its main site is the Parliament Street depot, which holds 200 buses out of 272 in total. Unusually, it runs vehicles with three different power sources – diesel, gas, and electric – and has reduced the number of diesel-powered buses to below 100. NCT buses travelled 17 million miles last year. Before Covid-19 NCT buses carried around 51 million passengers per year, and after suffering a dip due to the pandemic and lockdown is now up to 45 million journeys per year. This seems to be a long-term contraction;

c)  NCT has been very successful, winning both of the main competitions in the industry in 2024, becoming the record six-time winner of the UK Bus Operator of the Year Award. Judges found that NCT’s scores easily surpassed all other operators, with excellent customer service, and staff proud to work for the company. This was found in the staff survey, carried out every two years, which found 92% of staff were proud to work at NCT;

d)  customer satisfaction is the highest for a city bus operator in the country, and the company has cultivated a positive reputation among city residents and peers in the industry. This has helped the city to achieve the second-highest level of bus use per head outside London. Where the average person in Britain takes 36 bus journeys per year, the average Nottingham resident takes 126;

e)  most routes operate only around five miles from the city centre, making it an intense network. Routes are colour-coded to help customers easily identify their routes, and the fare structure has similarly been kept simple and straightforward;

f)  vehicles are high-specification, and the company is in the process of moving towards a new electric fleet. A lot of the features traditionally provided by NCT have now become mandatory, such as visual displays. The average age of the buses is seven, and has increased slightly because of delays with the electric vehicles, but compares well with the national average of eleven years;

g)  in the latest customer survey, 39% of customers stated they had a car available but chose to use the bus instead. That is an achievement, but also a threat – if the buses weren’t clean, the drivers weren’t friendly, and the service wasn’t reliable, those customers would have a ready alternative;

h)  the top priority for customers is punctuality. The Traffic Commissioner has set a target of 95% punctuality, for NCT this figure is 92% from the city centre and 91.5% out of terminus. The radio control room helps to regulate the service, and the company is keen to move to digital technology;

i)  traffic poses an operational challenge, due to a combination of roadworks and junction modifications. Parliament Street works had a particular impact this year, as well as works around Arnold, Daybrook, and Sherwood. Later this year there will be large-scale works on the A52 for the best part of a year. Six extra buses had to be deployed this year to maintain existing timetables due to traffic problems, and the average running speed is currently only 9mph;

j)  the company welcomed Simon Lightwood MP on his first visit as Local Transport Minister this year, the Bus Services Bill has been introduced nationally. In the future the responsibility for local transport will move to the East Midlands Combined County Authority, and the company is keen to work closely with the mayor and develop the bus partnership that has worked in Greater Nottingham for 25 years, and hopes to avoid franchising in the city.

In the discussion which followed, and in response to questions from the Committee, the following points were highlighted:

g)  the £2 single fare cap, which NCT participated in, did lead to a noticeable effect on patronage, as fares were already fairly low. It is anticipated that the move to a £3 single fare will also have a neutral impact, and the general increase in other fares is in line with the market; 

h)  the changing levels of patronage can be explained by differences in commuting habits after Covid-19, with workers no longer commuting five days per week as standard. The peaks in ridership have returned, but not to the same levels. Tuesday, Wednesday, and Thursday are the most busy days;

i)  the has been a big change in the student market, with students also no longer attending lectures on campus as often, now lectures can be accessed online. It is anticipated that this is the new normal, and there is a concern that Nottingham has reached its peak student population, after years of increases in passengers coming from increased numbers of students. There are also growing alternatives for commuters, such as e-scooters and electric bikes.

The Committee noted the Nottingham City Transport Limited business plan – public presentation.

To consider excluding the public from the meeting during the consideration of the following items in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Committee decided to exclude the public from the meeting during consideration of the remaining agenda items in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighed the public interest in disclosing the information, as defined in Paragraph 3 of Part 1 of Schedule 12A to the Act.

Report of Corporate Director for Finance and Resources.

This item does not contain any decisions eligible for call-in.

Dave Astill, Managing Director of NCT, gave the exempt business plan presentation. Details of the presentation and subsequent discussion are set out in the exempt minute.

The Committee noted the contents of the exempt presentation.

To confirm the exempt minutes of the meeting held on 11 February 2025.

The exempt minutes of the meeting held on 11 February 2025 were confirmed as an accurate record and signed by the Chair.