Beloved Leicester cinema set to reduce opening hours amid expected funding cut
A beloved Leicester venue might have to shut two days a week amid an expected funding cut. The Phoenix Cinema and Arts Centre has been a fixture of the city for the past 60 years, and currently opens 363 days a year, shutting its doors on only Christmas Day and New Year's Day .
However, its bosses have said they are having to consider “significant” changes to its operations as they expect, from April, to lose the funding the centre currently receives from Leicester City Council. This financial year, 2024/25, the city council provided around £194,000 to the charity.
But the cash-strapped authority is having to tighten its belt to ensure it can balance its books – something it is legally required to do. A spokeswoman for the council said it was currently facing an "extremely difficult" financial position, which required "difficult decisions" to be made.
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A final decision on the Phoenix's funding is expected to be taken next month (February) at the council's annual meeting to approve the authority's budget. The spokeswoman added that, if the centre's funding was ultimately cut, the authority would continue to work with Phoenix "to help them to maximise promotional and marketing opportunities".
Sarah Vallance and Ros Hill, co-CEOs of the Phoenix, told LeicestershireLive they had “no choice” but to consider “cost savings” to keep the venue financially viable in light of the possible funding cut and increased operational costs, in part due to a rise in employer’s National Insurance contributions.
The venue announced today (Wednesday, January 29) that it was considering shutting on Tuesdays and Wednesdays from the start of April. Bosses said the Phoenix would continue to offer a “full and vibrant” arts programme, and that the Café Bar would “operate as normal within our revised opening times”.
The council’s grant is one of a number of revenue streams for the Phoenix, with ticket sales and hiring out conference space also contributing. This year, around 30 per cent of its income came from grants. Without the council’s cash, this is expected to drop to 12 per cent.
Ms Vallance said: “What we're working on at the moment is a plan to reduce opening hours from seven days a week to five days a week. We typically open 363 days a year and have done so for many, many years.
“So, in terms of the ability to serve Leicester and the communities of Leicester, you're there all the time. A change from that well-established seven days a week pattern, it is significant, but it's a change that we need to make in order to stabilise with the financial challenges that are ahead for us.”
The reduction in opening hours could also result in changes for staff, Ms Vallance said. She added: “We will try everything we can to minimize the need to make any redundancies. Consultations with staff are absolutely vital to that and that process is underway.”
Ms Hill said: “If you talk to customers about us, it's always the people, and the friendliness and the knowledge of the staff, which are vital parts of everything we offer here. Of what makes Phoenix. It is a very, very difficult decision.”
The news comes on the back of a tricky few years for the charity. Covid and the cost-of-living crisis hit the arts sector hard, and then, coming out of the pandemic, the venue underwent a huge transformation which disrupted its day-to-day running. A council-led scheme to replace the cladding on the original Phoenix Square building then required scaffolding to be erected around the venue. The co-CEOs said those factors had impacted their ability to hire out rooms due to noise disruption from the works.
However, Ms Vallance and Ms Hill said the charity’s leadership was not giving up on the beloved venue. Ms Hill said: “We will be fighting for other funds. We'll be doing fund-raising."
"We’re seeking sponsorship from local businesses," Ms Vallance added. "We're particularly interested in independent organizations from Leicester and Leicestershire.
“We've got fantastic facilities here to offer to businesses as well as communities. We have just won a Best Corporate Hospitality award as well from the Kith and Kin Hospitality Awards.”
The charities leaders are also looking to expand the conferencing side of the business, with the two-day-a-week closure of the arts side of the venue allowing them to explore hiring the building out as a “full-venue conferencing centre”.
Ms Vallance and Ms Hill also said they were in “regular communication” with the city council over the future of the Phoenix, which, in its former home in Newarke Street, attracted big-name actors such as Wilfrid Brambell and Felicity Kendal.
Ms Vallance said: “We've been talking with them about ways that we can mitigate this. It's a long-standing relationship and it's an important relationship that we want to maintain however we can going forward. […] Partnerships, opportunities to be involved with festivals and events that are taking place across the city, all of that is really important.”
The CEOs said they "don't blame" the city council for the potential fund cut. Ms Vallance added: "It's circumstance. Their challenge is enormous.”
LeicestershireLive asked the CEOs whether they had a message for residents who might wish to support the venue. Ms Vallance said: “If people want us to be here, and we believe that people do, we need them to come.
“We need them to come all year round, despite the scaffolding, because what's on the inside is wonderful. We might not look great on the outside at the moment, but we are absolutely wonderful inside. Walk through the doors.”
She added: “A lot of people refer to us as a hidden gem. We keep getting that. We see on our Google reviews.
“We don't want to be hidden. We hope to be a gem, but we don't want to be hidden. We basically want to be Leicester's favourite cinema.”
The bosses said they were expecting to announce a finalised plan in March. They added in a public statement: “It is essential that we reduce costs so we can rebuild our funds, improve our financial stability and secure Phoenix’s future – this proposal is a vital step in that process.
“This is an incredibly unsettling time for all Phoenix staff, as proposals are worked through. We also recognise that this proposal would impact our customers who attend on Tuesdays and Wednesdays and some groups who meet regularly at Phoenix and we will be contacting those groups separately.”
A council spokeswoman said: “Phoenix Arts has been affected by a number of issues, including the longer than anticipated recovery of cinema audiences, and the impact of the works taking place there. We have been talking to them for some time about our own extremely difficult funding position, and the need for us to take difficult decisions to balance our books.
“We have not yet made a final decision on this, and are considering all options, but it is prudent of the Phoenix trustees to plan on the assumption that we won’t be able to continue to support them in the future. Whatever final decision is made in February, we will continue to work closely with the Phoenix team to help them to maximise promotional and marketing opportunities to help to increase their business.”