Agenda item

Report Attached.

Members considered a report of Councillor Mohammed Younis, Cabinet Portfolio Holder for Levelling Up, which outlined the various options in providing facilities for casual market traders during the Market Hall redevelopment.

Councillor Younis referred to the successful increase in footfall for casual traders on the Thursday and Sunday markets.  He referred to the proposed options for providing facilities and to option 1, which proposed a casual market based on 14 stalls and achieving 100% hire rate.  He reported that conversations with business located on Broadway and been positive and no concerns had been raised.  The proposed market would see stalls erected along the bottom half of Broadway towards the junction with Union Street.  Broadway, between Union Street and Cornhill, is unadopted and administered by Hyndburn Council.  The individual stalls would be charged out at the going rate for a stall type, and on that basis there would not be any subsidy provided to the traders concerned.  A simple daily letting agreement would be entered into with the traders.

Approval of the report was not deemed a key decision.

Reasons for Decision

The Market Hall and external pavilions along Peel Street are being redeveloped as one of the Council’s Levelling Up funded projects. The Council has relocated the leaseholder traders who wish to continue trading into temporary cabins on the town square or other commercial units within the town centre. A small number have also made their own arrangements to relocate into the town centre. In addition, there are a number of casual market traders who trade from outdoor stalls under the pavilions who simply pay per day if and when they wish to trade. By far the most popular casual market is the ‘pre-loved’ market on a Thursday and the ‘flea’ market on a Sunday. The 3 day  casual ‘new goods’ market, (Tuesday, Friday and Saturday) did not have anywhere near the same level of take-up from traders and on occasions only had three or four traders due to the fact that there are already a number of ‘new goods’ traders located in the cabins.

The Market Manager has highlighted the fact that Thursday and Sunday markets have the greatest uptake and therefore income figures in this report are calculated on just providing for Thursday and Sunday trading. It should be noted that income figures are based on 100% of stalls (14 or 20) being hired out for 50 weeks of the year (there would be no provision over Christmas/New Year period). Any reduction in these rates will reduce income levels to the Council. Whilst under the covered pavilions, market traders had the facility of lighting and power. The temporary nature of the stalls being proposed means this would not be an option and that customers would not be under cover. This may have an effect on traders and potential customers. It should be noted that the Market Manager has estimated a more realistic hire number, (to take into account the summer and winter periods) would be an average of 10 stalls per day.

Income – Hire of Stalls 

Hire income is based on maintaining the Council’s existing charge rate of £20 per stall per day.  Stall bookings and payment will need to be in advance and via card (for security reasons cash will not be accepted).

Revenue Expenditure – Market Porters

Market staff have timed the collection from storage, erection, dismantling and placing back in storage the traditional market stalls and estimate the additional labour required to establish the casual trader market. The staffing figures are based on providing resource during the 12 month market decant period between April 24 - April 25, cover for sickness and holidays and includes an allowance for weekend working.

Capital Expenditure – Trader Stalls

Two priced options were shown to the Acting Leader of the Council and Portfolio Holder for Levelling Up:

Option (a) 2.4mx1.2m ‘traditional’ market stall frame with table top, small customer canopy, skirt, table cover, back/side walls and weights.

Option (b) 3mx3m ‘gazeebo’ stall with roof, 3 walls and weights (no table top included).

Discounts were given for greater numbers ordered.

Option (a) was the preferred choice in standard ‘off the shelf’ green and white (with stripes). It is not proposed for any Council branding as this would extend the order time and increase the costs.

The costs and maximum possible income of providing a casual market trader market on a Thursday and Sunday over 50 weeks based on 14 and 20 stalls are detailed below.

 Option 1

 Casual Market based on providing up to 14 stalls and achieving 100% hire rate

Income            Thursday Market: £14,000 

Sunday Market: £14,000 

Revenue Costs    1.5 members of staff: £51,275 (including on-costs)

Revenue cost to the Council: £23,275 

(not achieving 100% hire rate will increase this cost) Capital Cost to the Council: £19,836 + VAT

 Option 2

 Casual market based on providing up to 20 stalls and achieving 100% hire rate

 Income            Thursday Market: £20,000

                          Sunday Market:   £20,000 

 Revenue Costs         2 members of staff £69,338 (including on-costs)

Revenue Cost to the Council: £29,338

(not achieving 100% hire rate will increase this cost)

Capital Cost to the Council: £28,134 + VAT

Option 3

The Council does not provide a causal trader market and therefore this option has no additional revenue or capital costs.

Whilst there is no legal requirement for the Council to make provision for casual market traders, there is a political wish to support these traders during the decant period. This eliminates Option 3. The decision on whether to choose Option 1 or Option 2 is purely one of capital costs and the revenue risk the Council wishes to accept. 

As the number of traders who would hire a stall is unknown, i.e. there is no legal/formal commitment from a casual trader to hire a stall every market day, a smaller number of stalls purchased reduces the capital outlay, has a reduced staff cost and most likely, greater opportunities for reuse within the Market Way pavilion in the future. The larger number of stalls has the potential for increased income to the Council but has increased staff costs and likelihood not all the stalls would be utilised in the future.  

When considering the advantages v disadvantages of option 1 and option 2, the officer recommendation is that Cabinet consider agreeing Option 1 for the purchase of 14 stalls. This reduces the Council’s capital outlay, reduces the revenue costs and a smaller number of stalls more likely to be reused. 

Alternative Options

The Council could choose not to establish the casual market on Thursday’s and Sunday’s during the markets decant period. This has been discounted due to the Acting Leader of the Council’s and Portfolio Holder for Levelling Up wish to provide a facility for these traders.

Resolved                           (1)   That the report be noted;

                                            (2)   That Option 1 to provide facility for casual market traders during the Market Hall decant period as set out in the report be accepted; and

                                            (3)   That authority be delegated to the Executive Director (Environment) to make the necessary arrangement for the purchase of the ‘traditional’ market trader stalls and recruitment of temporary market staff.