Decision Maker: Executive

Outcome: Recommendations Approved (subject to call-in)

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: December 9, 2025

Purpose: 1.    The purpose of the report is for the Executive to consider selling a painting by the artist Walter Langley entitled ‘The Cornish Fisher Folk’. The artwork is an asset belonging to Waverley Borough Council which has been on loan to Penlee House and Gallery in Cornwall since 2010.   2.    The matter was previously discussed by the Executive in July 2025 where it was agreed that the Arts Officer should write to Penlee House and Gallery offering them the opportunity to purchase the painting at a price no lower than £65,000. The Executive supported this approach because they felt the painting would continue to deliver a public benefit in an appropriate setting, which could not be guaranteed if the painting was sold at auction.   3.    The Arts Officer wrote to Penlee on 4 August 2025 offering a private treaty sale. The alternative option was stated as being the termination of the annual loan agreement and the withdrawal of the painting so it could proceed to auction in March 2026.   4.    Penlee Gallery responded immediately to confirm their interest in buying the painting but explained that they would need to fundraise as they did not hold the requisite funds within their budgets. They are currently in the process of applying to the V&A Fund and the Art Fund and expect decisions early December 2025. They have also launched a public fundraising campaign to raise the outstanding amount.        5.    It was reported at Executive Briefing in July that the painting had been recently revalued by Bonhams Auctioneers who recommended an estimate of £60,000 - £100,000 as being a price the art market would respond positively too. Bonhams can offer an ‘all in’ commission rate of 4% of the sale price plus VAT . Given the option of selling to Penlee for £65,000 and the recommended estimate form Bonhams, it is recommended that the reserve is set to £70,000 at auction. A sale of £70,000 less the 4% commission would generate a receipt of £67,200.   6.    At the July meeting the Executive expressed concerned about the ethics of the sale and requested assurance from Arts Council England that no negative repercussions would arise if a sale went ahead. The Arts Officer received written confirmation from the Director of Museums and Cultural Property, which clearly stated that selling the painting presented a minimum risk as it is not accessioned to a museum collection. Therefore, a sale would not affect current funding arrangements, the ability to apply for funding in the future or the Accreditation of any of the museums in the borough.   7.    The option to sell the painting to Penlee Gallery would likely constitute a disposal at less than best consideration, based on sale estimate received from Bonhams (as set out in paragraph 1.5) and the most recent insurance valuation. “Best consideration reasonably obtainable” refers to the best price, or equivalent economic value, that the Council could reasonably achieve at the time of disposal, taking into account the asset’s market value and any reasonable conditions of sale. It does not necessarily mean the highest speculative offer, but rather the amount that a prudent and well-advised seller would expect to achieve in an open market transaction.   8.    While the proposed sale to Penlee Gallery is likely to be below best consideration, there are compelling social, cultural and reputational benefits that justify this approach. The painting is already held by Penlee Gallery on loan and is publicly accessible as part of its permanent exhibition programme. A formal transfer of ownership would ensure the artwork’s continued professional conservation, curation, and long-term display, securing its preservation for future generations. On this basis, the proposed sale is considered reasonable and justified in the circumstances.     9.    If the painting is purchased by Penlee Gallery for a sum of £65,000, it is recommended that the full amount of income derived from the sale is designated to support the cost of the repair work to the Museum of Farnham. If, however, the decision is taken to sell the painting at auction the financial return will not be known until March 2026. In this instance, it is proposed that up to £100,000 of the income is ringfenced for the Museum of Farnham and that any surplus above this amount is shared with other arts organisations in the Borough including Cranleigh Arts Centre, Haslemere Hall, Godalming Museum, the Borough Hall and Haslemere Museum.  In this eventuality, the Arts Officer will consult the Executive on the development of a simple funding criteria and application process for allocating the surplus funding.   10.  Furthermore, if the painting is sold to Penlee it is proposed that the sale contract includes a ‘sell-on-clause’. This would entitle Waverley to a pre-agreed percentage of the proceeds of a subsequent sale should the painting be sold to a third party. The purpose of this clause is to protect the Council’s interests if the asset’s value appreciates significantly after the initial sale for a specified period. 

Content: RESOLVED that:   1.      The Assistant Director for Commercial Services to enter a private treaty sale with the Penlee Gallery for the sale of The Cornish Fisher Folk for a sum no less than £65,000 is AUTHORISED. 2.     In the event that Penlee House and Gallery fail to match the asking price by 10 January 2026, the Assistant Director for Commercial Services is to consign the painting to Bonhams Auctioneers so it can be placed in a fine art sale in March 2026 with a reserve figure of £70,000 is AUTHORISED. 3.     An allocation of up to £100,000 of the income generated by the sale towards the costs of repairing the Museum of Farnham is APPROVED. 4.     The ringfencing of any income from the sale of the painting of more than £100,000 to benefit other cultural assets in the Borough is APPROVED.  

Reasons for the decision: 1.    The painting has been in the Council’s ownership since the authority’s creation in 1974. Although the painting is of value it has no obvious connection to Waverley and provides no benefit to residents. 2.    Due to security and insurance costs, it is not financially viable to display the painting in the public areas of the Council offices. For these reasons the painting has been on a rolling annual loan to The Penlee Gallery in Cornwall since 2010, where it delivers a public benefit in a location that is appropriate to its origins.   3.    The Council is having to meet an increasing cost for the repair works to the Museum of Farnham. The proceeds of the sale would help to reduce the Council’s expenditure. Income designated for the Museum of Farnham repairs will be capped at £100,000 and any surplus excess generated by the sale of the asset will be distributed among other arts organisations in the borough via a simple application process.

Alternative options considered: As set out in section 11 of the report.