Agenda item

Purpose of Report

To approve proposals for the use of the Additional Restrictions Grant funding to provide ongoing support to businesses impacted by Covid-19 and promote the economic recovery of the city.

Decision

(1)          That the proposals set out in the report for the use of the Additional Restrictions Grant funding to provide ongoing support to businesses impacted by Covid-19 and promote the economic recovery of the city, be approved.

(2)          That the final allocation of funding for each of the measures outlined in the report be delegated to the Section 151 Officer and Strategic Director of Major Developments.

Alternative Options Considered and Rejected

None.

Reason for Decision

A total of £2,868,060 had been awarded to the City of Lincoln Council to administer on a discretionary basis, known as the Additional Restrictions Grant. This funding could be deployed at the discretion of the authority, up to March 2022, and had to be focussed on providing direct support to businesses but could not be used as a wage top-up.

As of 15 February 2021, £440,143 had been spent supporting those businesses who were unable to receive grant funding through the previous mandatory support schemes. The Additional Restrictions Grant fund would continue to be deployed to support businesses that did not meet the mandatory criteria as long as lockdown or restrictions continued which it was envisaged would be at least until April 2021.

In addition to offering continued support with running costs, officers were working on a package of further support to assist economic recovery. To inform how best to utilise these funds and support economic recovery with the resources available, the Council had engaged with a number of stakeholders. A survey had also been undertaken on business needs, embedded within the grant application process, and research undertaken by the Greater Lincolnshire Local Enterprise Partnership and the Greater Lincolnshire Economic Recovery Plan had also been taken into account. Key findings and analysis of this important piece of work was appended to the report.

Draft proposals were presented to members of the City Council’s Community Leadership Scrutiny Committee on 9 March 2021 as it had been undertaking a scrutiny review of the impact of Covid-19 on businesses and the economy since September 2020. Comments from members of the Committee had been incorporated into the proposals set out in the report.

The proposal set out in the report consisted of ringfencing the remaining £2.43 million of the grant funding and utilising those resource as follows:

·         £500,000 safeguarded to continue to operate discretionary, ongoing support to businesses during any further periods of restrictions during 2021/22;

·         £500,000 ringfenced for a Business Revival scheme to support businesses to adapt, diversify, digitalise and prepare for re-opening;

·         up to £900,000 for a Visitor Economy Support Package, to help fund a renewed place marketing campaign;

·         up to £350,000 for a High Street Recovery Package to support retail businesses and high street recovery as a whole;

·         up to £180,000 for measures to support young people in business or with a route to employment.

Full rationale and timescales associated with each allocation were detailed in the report.

Councillor Neil Murray had personally received very positive feedback from businesses who had benefited from support grants during the Covid-19 pandemic and had been very complimentary of the Council’s staff and the timely way in which they had been able to help. He placed on records his thanks to all involved for a job well done, the sentiments of which were shared by the Leader of the Council.