The Victoria Hall Trust Advisory Committee met on Wednesday, 8 January 2025, to discuss the Trust's 2023/24 Annual Return and a governance update. The committee recommended the approval of the annual return, noting a significant deficit, and agreed to a process for recruiting new independent members to the committee.

Victoria Hall Trust 2023/24 Annual Return

The committee received an update on the Victoria Hall Trust's draft accounts for the 2023/24 financial year. Adam Whalley, Assistant Director Capital Investment Programme, explained that the Trust, registered in June 2021, is required to prepare an annual return. Ealing Council, as the sole Trustee, must approve this return before it is submitted to the Charity Commission.

Mr Whalley highlighted that the closure of the Town Hall in 2023 had resulted in a loss of the Trust's primary income source, leading to an accumulating deficit. Despite reduced operating costs for the Victoria Hall itself, ongoing expenses such as security, maintenance, insurance, business rates, and utilities remain. The financial position at the end of the reporting period showed a deficit of £231,342, bringing the total cumulative deficit to £885,813.

During the discussion, officers clarified that a detailed breakdown of costs for a year without income would be provided after the meeting. They also explained that costs charged to the Charity are apportioned based on its share of the building's square footage, with the Trust occupying 18% of the property. External legal fees from an appeal were also noted as a cost borne by the Trust. The accountancy firm Moore Kingston Smith was employed for forensic accounting and tribunal evidence, with no conflict of interest identified.

The committee was informed that the continued existence of the Trust is not guaranteed by the Mastcraft deal, but it is considered the only viable path forward. If the deal progresses, a payment of £2,500,000 would be made to Corporate Council, with a portion allocated to the Trust to offset its debt. The deadline for submitting the annual return to the Charity Commission is 31 January 2025.

The committee resolved to recommend to the Cabinet Member for Thriving Communities that:

• The draft Trustee Annual Report and Trust accounts for 2023/2024 be approved.
• It be noted that the Trust operated at a deficit of £231,342 for the period, resulting in a cumulative deficit of £885,813.
• A further statement detailing cost breakdowns for the Trust's expenditure be provided.
• The Assistant Director Capital Investment Programme be delegated authority, in consultation with the Chair, to agree arrangements with the Council to extend the zero-interest loan facility to cover the further deficit.
• The Assistant Director Capital Investment Programme, in consultation with the Chair, finalise the Trust's 2023/24 Annual Return and submit all required documentation to the Charity Commission.

Victoria Hall Trust Advisory Committee Governance Update

Rhian Davies, Interim Director of Legal and Democratic Services, presented an update on changes to the governance of the Victoria Hall Trust Advisory Committee. These changes stem from a scheme issued by the Charity Commission on 23 September 2024, which were subsequently agreed at Full Council on 10 December 2024.

The new scheme mandates that the committee must have a majority of independent members. The number of councillors on the committee has been reduced to three, while the number of independent members has increased to five. The terms of office for the three existing independent members have been extended to May 2029.

Ms Davies explained that as an advisory committee, its recommendations are made to the Cabinet Member for Thriving Communities, who is the ultimate decision-maker. However, the new scheme stipulates that the Trustee must follow the advice of the Advisory Committee or seek guidance from the Charity Commission.

A proposal was made for the committee to convene in March 2025, by which time the two new independent members are expected to have been appointed. This meeting would address any outstanding issues not covered by the new Scheme.

A recruitment process is underway to fill the two vacant independent member seats. The Interim Director of Legal and Democratic Services will initially approach 58 existing independent representatives within the council to gauge interest, with the aim of appointing new members at the next Council meeting on 4 March 2025. Ms Davies requested delegated authority to shortlist candidates, in consultation with the Chair and an independent member, should there be significant interest. Following shortlisting, the Advisory Committee members will conduct interviews. If no suitable candidates are found, an external recruitment campaign will be initiated.

The committee noted the governance update and thanked Mr Morley for his contribution. It was resolved that the Interim Director of Legal and Democratic Services would first approach the 58 independent representatives to fill the vacant positions. In the event of high interest, candidates will be shortlisted by the Chair, an Independent Member, and the Interim Director. Following shortlisting, all members of the Advisory Committee will conduct interviews, with a minimum of four members (two councillors and two independent members) present. Any identified candidates for appointment will be recommended for approval at the next Council meeting.