Agenda item

(To consider a report from Justin Brown, Assistant Director (Growth), on the creation of a £12M business support budget in response to the economic challenges presented by Covid-19. The report will be presented to the Leader of the Council (Executive Councillor: Resources and Communications) between 19 – 26 February 2021. The views of the Committee will be reported to the Leader as part of his consideration of this item)

Consideration was given to a report from the Assistant Director (Growth), on the creation of a £12M business support budget in response to the economic challenges presented by Covid-19. The report would be presented to the Leader of the Council (Executive Councillor: Resources and Communications) between 19 – 26 February 2021 for approval. The views of the Committee would be reported to the Leader as part of his consideration of this item.

On 19 February 2021 the Council meeting would be invited to allocate funding to create a new Support for Businesses Reserve of £12m for the purpose of implementing schemes for supporting Lincolnshire businesses. Subject to Council approval for the creation of the reserve, the business support budget would be a direct response to the financial challenges presented by Covid-19, and it would be used to support businesses who had received no help from other government schemes as well as being used to provide a platform for other businesses to respond to the economic emergency created by the pandemic and enable them to adapt to the changing environment and grow once restrictions were lifted.

It was reported that the Council already provided a lot of support to businesses, but that Covid-19 had exposed some gaps, for example, businesses who had not received government support. Following the Committee meeting some draft criteria would be published on the Council website so that businesses could prepare for the application round opened in the week beginning 22 February 2021. The aim of the Executive was to make quick payments to businesses in difficulty, but that aim for a quick payment would increase risk of misuse of funding and so a risk management process had been developed accordingly. It was noted that between 1000 and 2000 local businesses had been unable to attract a government grant.

The Committee considered the report, and during the discussion the following comments were noted:-

·         The report was supported and officers were congratulated on the report.

·         It was stated that the County Council were in a position to assist businesses financially at this time due to its good financial management of its resources.

·         It was thought that this type of scheme and rapid roll out was a good example of devolution benefiting local communities.

·         There were some concerns that High Street banks no longer seemed to be interested in lending in the long term to businesses to sustain their forward planning.

·         It was hoped that the programme would help create and protect some jobs.

·         It was noted that there could be risks with a quick roll out.  However, this would to be balanced against the need of local businesses, many of whom had limited cash reserves. The Council would be entering into a pilot scheme with the National Fraud Initiative which would add a further check to the process.

·         It was thought that obtaining evidence to support an application such as obtaining three quotes quickly may be difficult in the current Covid-19 pandemic. It was confirmed that other sources of evidence would be used such as bank statements, invoices, receipts, cancelled orders, bookings etc.

·         A communications plan had been developed to publicise the programme as widely and quickly as possible.

·         Liaison with District Councils was taking place regarding the coordination of grant payments as it was noted that District Councils had been administering the national scheme on behalf of the Government.

·         It was confirmed that businesses must have been in existence since 20 December 2020 to qualify for consideration.

·         Where businesses agreed to the sharing of information, it could be passed to Councillors on both local grant awards and refusals.  Local councillors also offered to provide advice about some of the businesses and the applicants if that would help officers to take decisions. 

·         The first payments from the programme were expected to be paid from mid-March.

RESOLVED:

1) That the recommendations to the Leader of the Council (Executive  Councillor: Resources and Communications) outlined above and in the report be supported;

2) That the comments of the Committee as outlined above be passed on to the Leader of the Council (Executive Councillor: Resources and Communications) for his consideration.

(Councillors G E Cullen and C Matthews re-joined the meeting following consideration of this item. Councillors C J Davie, M J Hill OBE and E Poll gave their apologies and left the meeting at this point)