Plans to close a council-run coffee shop in Caerphilly town centre have attracted much attention over recent days, with many people wanting to understand the rationale behind the proposal.
The council is keen to set the record straight and help explain the reasons for the recommendation, which forms part of the authority’s budget savings proposals for 2024/25.
Is Coffi Vista making a profit?
No – Unfortunately Coffi Vista is currently operating at a significant loss.
How much is the current subsidy?
The council is currently paying more than £100,000 p/a of public funds to plug the hole in Coffi Vista’s budget. Over the past 5 years the centre has received a subsidy in excess of half a million pounds of public money.
Isn’t it an important Tourist Information Centre?
The building was formerly used as a tourist information hub, but over recent years it has moved towards becoming a full-time coffee shop, providing little of the tourist information facilities it offered in previous years.
Could the site still operate as a coffee shop in future?
If the decision is approved, the council would engage with the commercial sector to see whether there is an opportunity to develop a business model that works for the council, local people and the business community. This would not mean the use of public funds.
What happens next?
The council will consider the future of the building as part of wider savings proposals for 2024/25 and a final decision is expected at the end of February.
How can local people have their say?
A special budget consultation will take place from Monday 22nd January, when local people will get the chance to have their say and provide feedback on the details of the proposed savings.
The Leader of Council, Cllr Sean Morgan said, “We appreciate that Coffi Vista is a popular facility, but we need residents to consider whether it is in the public interest to highly subsidise a coffee shop in Caerphilly, or re-direct these much needed funds towards delivering key frontline services.”
"With the Council facing a £66 million budget shortfall over the coming years, it does beg the question whether the taxpayer should continue to subsidise loss-making ventures such as Coffee Vista, or consider alternative models that keep town centres vibrant without using taxpayer’s money. Subsidising a Coffee Shop is not a priority when funds are under critical pressure to run statutory services, such as education and social care".