Perth and Kinross Council has announced the formation of a new ‘Strategic Alliance’ aimed at strengthening the long-term viability of key cultural and leisure services across the region. This collaborative framework will bring together the council with Live Active Leisure, Culture Perth and Kinross, and Perth Theatre and Concert Hall – the independent organisations responsible for managing a wide array of local attractions and public amenities.
The primary objective of this new partnership is to enhance cooperation and streamline operations among these three vital ‘arms-length external organisations’ (ALEOs). These bodies currently receive significant financial backing from the council to deliver essential services ranging from sports facilities and libraries to the renowned Perth Museum and the vibrant cultural offerings at Perth Concert Hall and Theatre. Addressing Mounting Financial Headwinds
The decision to establish the Strategic Alliance comes at a critical juncture. Council leadership has highlighted a consistently challenging operating climate for these organisations over the past decade. Financial forecasts paint a stark picture, projecting a combined deficit of £1 million for the three ALEOs in the 2024-25 fiscal year.
To tackle these escalating pressures, a dedicated Strategic Alliance Board will be convened on a quarterly basis. Its mandate will include exploring opportunities for resource optimization, identifying potential efficiencies, and developing strategies to stimulate economic growth and improve community wellbeing throughout Perth and Kinross.
The announcement follows a comprehensive study undertaken by EKOS Consultancy, which was itself the latest in a series of evaluations concerning the management of Perth and Kinross Council’s leisure and culture ALEOs, dating back several years. The consultants meticulously analysed a range of potential structural changes, including the consolidation of the three bodies into a single entity, their full integration back into council departments, or even the return of library management directly under municipal control.
However, after thorough deliberation, these more radical proposals were ultimately deemed unsuitable. Instead, the focus shifted towards a collaborative model, leading to the recommendation for the new strategic alliance. A recent report to councillors articulated this conclusion, stating:
“As a result of the evidence gathered and presented on each of the options, the report recommends that at this time, we do not pursue disruptive structural change with no financial benefit and indeed, implications in terms of costs and further investment.”
The report, however, stressed that proactive measures are still essential:
“However, there are other actions that can be progressed to achieve future financial sustainability of ALEOs, more consistent and streamlined approaches to service delivery and improved outcomes for people across Perth and Kinross.”
Councillor Concerns and Future Commitments
The council’s full adoption of the strategic alliance recommendation took place during a recent meeting in Perth. While the move was approved, several elected members voiced reservations regarding the perceived lack of innovative solutions and the limited scope of the proposed plan.
Perth Liberal Democrat councillor Liz Barrett expressed her disappointment at what many perceived as a ‘compromise’ after years of discussion:
“We as a council have been trying for years – since at least 2018, according to this paper – to get the ALEOs to improve financial sustainability and operational effectiveness and reduce the level of subsidy they need from PKC, before this review was set up nearly two years ago.”
Councillor Barrett further reflected on the process:
“I think many elected members will share my disappointment that it has taken so long for this review to conclude that it appears that little can be done.”
New Deputy Council Leader Ian Massie underscored the importance of the alliance not becoming a ‘missed opportunity’ to address deeply embedded challenges affecting the ALEOs. Independent councillor Colin Stewart also highlighted ongoing concerns, noting the minimal progress achieved since the previous review of ALEOs in 2023. That earlier study, conducted by Glasgow Audit, had identified opportunities for closer collaboration and centralisation of ‘back office’ functions such as finance and human resources.
In response to these concerns, the recently appointed council leader, Eric Drysdale, acknowledged his colleagues’ sentiments. He committed to personally ensuring that all necessary changes are implemented to realise the full potential of this new strategic approach for the benefit of the entire Perth and Kinross community, from the cultural heart of Perth to the furthest rural leisure centres.
The primary objective of this new partnership is to enhance cooperation and streamline operations among these three vital ‘arms-length external organisations’ (ALEOs). These bodies currently receive significant financial backing from the council to deliver essential services ranging from sports facilities and libraries to the renowned Perth Museum and the vibrant cultural offerings at Perth Concert Hall and Theatre. Addressing Mounting Financial Headwinds
The decision to establish the Strategic Alliance comes at a critical juncture. Council leadership has highlighted a consistently challenging operating climate for these organisations over the past decade. Financial forecasts paint a stark picture, projecting a combined deficit of £1 million for the three ALEOs in the 2024-25 fiscal year.
To tackle these escalating pressures, a dedicated Strategic Alliance Board will be convened on a quarterly basis. Its mandate will include exploring opportunities for resource optimization, identifying potential efficiencies, and developing strategies to stimulate economic growth and improve community wellbeing throughout Perth and Kinross.
The announcement follows a comprehensive study undertaken by EKOS Consultancy, which was itself the latest in a series of evaluations concerning the management of Perth and Kinross Council’s leisure and culture ALEOs, dating back several years. The consultants meticulously analysed a range of potential structural changes, including the consolidation of the three bodies into a single entity, their full integration back into council departments, or even the return of library management directly under municipal control.
However, after thorough deliberation, these more radical proposals were ultimately deemed unsuitable. Instead, the focus shifted towards a collaborative model, leading to the recommendation for the new strategic alliance. A recent report to councillors articulated this conclusion, stating:
“As a result of the evidence gathered and presented on each of the options, the report recommends that at this time, we do not pursue disruptive structural change with no financial benefit and indeed, implications in terms of costs and further investment.”
The report, however, stressed that proactive measures are still essential:
“However, there are other actions that can be progressed to achieve future financial sustainability of ALEOs, more consistent and streamlined approaches to service delivery and improved outcomes for people across Perth and Kinross.”
Councillor Concerns and Future Commitments
The council’s full adoption of the strategic alliance recommendation took place during a recent meeting in Perth. While the move was approved, several elected members voiced reservations regarding the perceived lack of innovative solutions and the limited scope of the proposed plan.
Perth Liberal Democrat councillor Liz Barrett expressed her disappointment at what many perceived as a ‘compromise’ after years of discussion:
“We as a council have been trying for years – since at least 2018, according to this paper – to get the ALEOs to improve financial sustainability and operational effectiveness and reduce the level of subsidy they need from PKC, before this review was set up nearly two years ago.”
Councillor Barrett further reflected on the process:
“I think many elected members will share my disappointment that it has taken so long for this review to conclude that it appears that little can be done.”
New Deputy Council Leader Ian Massie underscored the importance of the alliance not becoming a ‘missed opportunity’ to address deeply embedded challenges affecting the ALEOs. Independent councillor Colin Stewart also highlighted ongoing concerns, noting the minimal progress achieved since the previous review of ALEOs in 2023. That earlier study, conducted by Glasgow Audit, had identified opportunities for closer collaboration and centralisation of ‘back office’ functions such as finance and human resources.
In response to these concerns, the recently appointed council leader, Eric Drysdale, acknowledged his colleagues’ sentiments. He committed to personally ensuring that all necessary changes are implemented to realise the full potential of this new strategic approach for the benefit of the entire Perth and Kinross community, from the cultural heart of Perth to the furthest rural leisure centres.