Issue - meetings

The Government has distributed billions of pounds of support to businesses during the pandemic through local authorities. Waverley paid over £22m of covid-support business grants to businesses in the Borough between April and October 2020. Since the November 2020 lockdown and subsequent statutory restrictions, Waverley has operated a further six separate business support schemes allocating government funding. One of the schemes is the Additional Restrictions Grant (ARG) which covers the period November 2020 to March 2022 and is targeted mainly at businesses that don’t meet the criteria for the other specific support packages. The government guidance enables local authorities to allocate part of this funding towards wider business support measures to help its business community recover. Waverley received an initial £2.5m of funding and was required by government to set a discretionary grants scheme and decide how much money to allocate to wider business support.

This report sets out the proposed allocation from the first tranche of funding for wider business support measures and the main target areas for this funding. The report seeks Executive’s approval to these proposals and agreement to a delegation to make specific allocations and payments within this framework so that funding can be quickly allocated as Waverley’s business community rebuilds during 2021.

Recommendation

It is recommended that the Executive:

1.    Approve the allocation of £0.5m from the ARG first tranche of £2.5 received to wider business support measures with the balance and subsequent tranches being allocated to direct business grants alongside other grant schemes.

2.    Approve the proposed four priority areas for strategic business support and the indicative initial spending plan set out in Annexe 1.

3.    Delegate to the Strategic Director in consultation with the portfolio holders for finance and economic development, the spending of the wider support funding on specific business support projects and initiatives during 2021/22, having regard to the plan set out at Annexe 1.

4.    Request officers to monitor activity and spending and report to councillors as part of the quarterly performance reports to Overview and Scrutiny Committee and the Executive and to review the agreed proposals in six months, seeking approval if material changes are required.

RESOLVED to:

1.    Approve the allocation of £0.5m from the ARG first tranche of £2.5 received to wider business support measures with the balance and subsequent tranches being allocated to direct business grants alongside other grant schemes.

2.    Approve the proposed four priority areas for strategic business support and the indicative initial spending plan set out in Annexe 1.

3.    Delegate to the Strategic Director in consultation with the portfolio holders for finance and economic development, the spending of the wider support funding on specific business support projects and initiatives during 2021/22, having regard to the plan set out at Annexe 1.

4.     Request officers to monitor activity and spending and report to councillors as part of the quarterly performance reports to Overview and Scrutiny Committee and the Executive and to review the agreed proposals in six months, seeking approval if material changes are required.

Reason: The impact on the economy on certain sectors has been considerable and this money enables Waverley Borough Council to work in a more strategic ways to assist recovery and long term support to local businesses and employment. The delegation requested will enable speedy utilisation of these vital government funds to support businesses where it is most needed. These proposals are in addition to the significant package of grants being awarded by Waverley through the government’s various Covid support schemes.

[VALUE FOR MONEY OVERVIEW & SCRUTINY COMMITTEE]

95.1    Cllr Townsend introduced proposals to allocate funds from the Additional Restrictions Grant (ARG) for wider business support activities. The Government had distributed billions of pounds of support to businesses during the pandemic through local authorities. Waverley had paid over £22m of Covid support business grants to businesses in the Borough between April and October 2020.

95.2     Since the November 2020 lockdown and subsequent statutory restrictions, Waverley had operated a further six separate business support schemes allocating government funding. One of the schemes was the Additional Restrictions Grant (ARG) which covered the period November 2020 to March 2022 and was targeted mainly at businesses that did not meet the criteria for the other specific support packages. The government guidance enabled local authorities to allocate part of this funding towards wider business support measures to help its business community recover. Waverley had received an initial £2.5m of funding and was required by government to set a discretionary grants scheme and decide how much money to allocate to wider business support.

95.3     The proposed allocation of £0.5m from the first tranche of funding for wider business support measures would be targeted at: support for key sectors (Retail/tourism- visitor economy/ hospitality/ leisure/ events); Business diversification and start up; Digital connectivity; and, Business intelligence.

95.4    Executive Members thanked officers in the Finance Team for their work in distributing government grants to businesses at short notice, and managing the different schemes; and the Economic Development Team for their work with Chambers of Commerce and Town Councils supporting local businesses.

95.5    The Executive RESOLVED to:

1.    Approve the allocation of £0.5m from the ARG first tranche of £2.5m received to wider business support measures with the balance and subsequent tranches being allocated to direct business grants alongside other grant schemes.

2.    Approve the proposed four priority areas for strategic business support and the indicative initial spending plan set out in Annexe 1.

3.    Delegate to the Strategic Director in consultation with the portfolio holders for finance and economic development, the spending of the wider support funding on specific business support projects and initiatives during 2021/22, having regard to the plan set out at Annexe 1.

4.     Request officers to monitor activity and spending and report to councillors as part of the quarterly performance reports to Overview and Scrutiny Committee and the Executive and to review the agreed proposals in six months, seeking approval if material changes are required.