Agenda item

DECISION

1.    That the recommendations of the Cabinet report dated 5 June 2019 be amended for the reasons set out in the report.

2.    That £170,000 be allocated to the Business Recovery Fund and delegate to the Director of Growth, in consultation with the Chief Finance Officer and Leader and Deputy Leader of the Council, the criteria and application process.

3.    That £30,000 be allocated to Support for the high street through use of technology and delegate to the Director of Growth in consultation with the Leader and Portfolio Holder for Finance, allocation of that funding.

4.    That £50,000 be allocated to a Feasibility Proposal Fund and delegate to the Director of Growth in consultation with the Leader and Portfolio Holder for Finance, allocation of that funding.

5.    That £50,000 be allocated to the Support for Business (short-term recovery) Fund, and delegate to the Director of Growth in consultation with the Leader and Portfolio Holder for Finance, allocation of that funding.         

Portfolio Holder and Officer

Cllr Skinner

MS

REASON FOR DECISION

Councillor Skinner presented a report, which set out proposals designed to utilise the Business Rates Pilot Fund monies to support the wider economic recovery of the borough of Boston following the impact of the COVID-19 lockdown.

The Department of Communities and Local Government (now the MHCLG) sought pilot areas as part of the 100% business rates localisation initiative and Lincolnshire was a successful applicant for pilot status in 2018/19. The benefits of the scheme totalled £388,000, which was placed in reserves.

Under the this scheme, Lincolnshire authorities had worked in partnership, on a voluntary basis, giving them scope to generate additional business through collaborative effort and to smooth the impact of volatility in rates income across a wider economic area.

A report to Cabinet on 5^th June 2019 agreed a set of projects to which this funding was to be allocated. The Business Rates Localisation Pilot in 2018/19 provided a real opportunity to fund a variety of projects the Council would not normally have resources to fund and would help deliver the objectives of the Corporate Plan and Economic Development Plan, whilst promoting strong links with stakeholders.  The current position on the projects was set out in detail at Appendix 1. Several projects had been paused once the Government announced the proposed Towns Fund initiative, as it was considered that the Business Rates Pilot Fund might be better utilised to match fund Town Deal projects.  

By mid-February 2020, COVID-19 was becoming a national matter of concern, culminating with the Prime Minister announcing a national lockdown on 16th of March 2020. The impact on the wider economy immediately became a cause for concern. It was considered an appropriate time to review the existing projects and consider reallocation of the remaining funds to support the impact of COVID-19 on the Borough’s business community.  This report presented proposals to redirect the funding to projects that remained in line with the pilot’s bid proposals to support skills and the economy within the Borough.

The Business Rates Pilot Fund had capacity for £388,000 and to date approximately £88,000 had been committed, leaving capacity of £300,000 to support the business community.

There was a large amount of intelligence being gathered at the moment about what businesses believed they needed during recovery and it was important that any support was for both short term and medium term and included not just retail, tourism and hospitality but also the  manufacturing industries.

The report set out the steps the Council had already taken to provide support to the local business community and then went on to detail the revised proposals for the reallocation of the Business Rates Pilot Fund monies, summarised as follows.

Business Recovery Fund - £170,000

The Business Recovery Fund would fundamentally support and facilitate business improvement practices such as up-skilling, workforce planning - identifying employment opportunities, diversification, innovation and sustainable climate change practices. 

There would be a period of 6-9 months when businesses assessed their options, including business support and making their best judgement of what the market would be like when the economy emerges out of lockdown and therefore would enable assessment of funding scale, criteria that support the fundamentals of productivity, innovation and access to the right skills that creates stability of business retention and growth within the communities.

It was proposed that this criteria be developed by the Director of Growth and Chief Finance Officer, in consultation with the Leader and Deputy Leader as the needs of the business community become more apparent in the next few weeks and months.

Support for the high street through use of technology £30,000

A project had been developed that explored wireless technology, which provided an in-depth view into the demographics of visitors to the Town Centre and then used that data to create automatic targeted marketing campaigns to promote businesses.

Feasibility Proposal Fund - £50,000

This fund was intended to enable the Council to work in partnership with landowners to commission joint feasibility studies to explore alternative uses for empty units, land or other types of property within the Borough, to generate options to re-purpose an area for economic benefit to the wider locality.

Support for Business (short term recovery) Fund - £50,000

Officers were in the process of obtaining briefs for business support packages and the countywide recovery group has scoped two projects, one for businesses and one to promote tourism.

Members fully supported the proposals.  Business recovery and support for small businesses were vital. The High Street was already struggling before lockdown so this help was crucial for businesses, staff and local residents. It would be very good use of reserves. It was noted that Councillor Cooper, a former Cabinet Member, had worked extremely hard on these projects, particularly Primary Engineer, and his contribution was recognised.

OTHER OPTIONS OR ALTERNATIVES CONSIDERED

None.

RECORD OF ANY CONFLICT OF INTEREST

None.

RECORD OF ANY DISPENSATION GRANTED

None.