DECISION TAKEN UNDER DELEGATION TO THE CHIEF EXECUTIVE

Subject:

Use of Additional Restrictions Grant Funding

Date of Decision:

23 July 2021

Decision Number:

5/2021

Background:

In November 2020, the Chief Executive approved under his urgency powers policies for the distribution of the Local Restrictions Support Grant (open) and Additional Restrictions Grant (ARG) funding.

The ARG funding made available to local authorities can be used in respect of both direct grants to businesses and wider business support measures. As part of the urgency decision taken in November 2020, it was agreed that 10% of the ARG funding (£356,000) would be ‘top-sliced’ to be used for wider business support activities, subject to a future policy proposal.

It is proposed to spend the 10% ‘top sliced’ ARG funding as part of the North Economic Board (NEEB) business support and skills programme. The attached briefing note explains the purpose of the NEEB and how, in order to actively support the economic recovery of North and Mid Essex from Covid-19, each local authority has committed to contributing 10% of their ARG funding (for this would be a maximum contribution of £356,000) towards a NEEB business support and skills programme. This equates to £1.8m being pledged towards supporting the economic recovery of the area.

Decision and Reasons for Urgency:

The need to provide business and skills support to businesses quickly and timeframes being worked towards to put in place this business support would be frustrated by the timescales of the usual decision-making process. The Chief Executive therefore agreed to exercise his delegated authority to take urgent decisions and formally approved the use of the Council’s allocation of ARG funding for this purpose.

Supporting Information:

The Cabinet Member for a Connected Chelmsford was consulted before taking the decision and had no objection to it.

NORTH ESSEX ECONOMIC BOARD – BUSINESS SUPPORT PROGRAMME

Enquiries contact: Stuart Graham, 01245 606364, [email protected]

1. Introduction

1.1 In November 2020, an urgency decision was taken to the Chief Executive to agree policies for the distribution of the Local Restrictions Support Grant (open) and Additional Restrictions Grant (ARG) funding.

1.2 The ARG funding made available to local authorities can be used in respect of both direct grants to businesses and wider business support measures. As part of the urgency decision taken in November 2020, it was agreed that 10% of the ARG funding (£356,000) would be ‘top-sliced’ to be used for wider business support activities, subject to a future policy proposal.

1.3 This paper seeks an urgency decision to agree the spending of the 10% ‘top sliced’ ARG funding as part of the North Essex Economic Board (NEEB) business support and skills programme. The need to provide business and skills support to businesses quickly and timeframes being worked towards to put in place this business support would be frustrated by the timescales of the usual decision-making process.

2. North Essex Economic Board (NEEB)

2.1 NEEB is a partnership of local authorities in the area working together as a catalyst to drive forward economic growth. The partnership consists of Council, Borough Council, Chelmsford City Council, District Council, District Council, District Council and Essex County Council. Chelmsford City Council joined the NEEB partnership in June 2020. The Deputy Leader of Chelmsford City Council represents the Council on the Board.

2.2 Whilst the longer-term aim of NEEB is to support and promote the economic prosperity of North and Mid Essex, short term the focus is on supporting the economic recovery from Covid-19. In order to actively support the economic recovery of North and Mid Essex from Covid-19, each local authority has committed to contributing 10% of their ARG funding (for Chelmsford this would be a maximum contribution of £356,000) towards a NEEB business support and skills programme. This equates to £1.8m being pledged towards supporting the economic recovery of the area.

2.3 A programme of business support activity has now been developed and is being progressed. Local business surveys, direct feedback from local businesses and information from business support partners have all been used to aid the development of the business support programme. The following five activities form the main initiatives that it is hoped will shortly be procured in order to deliver business support across North and Mid Essex.

- Business support navigation - Business start-up and pre-start support - Finance and debt management support - Digital and cyber security support - Importing and exporting support

2.4 The Board are keen to ensure that all initiatives enhance the existing business support landscape. Confirmation has been given by the Department for Business, Energy and Industrial Strategy (BEIS) that the business support programme proposed by NEEB would be a suitable use of ARG funding. Work is still being progressed to develop a skills programme to support businesses across North and Mid Essex.

2.5 Essex County Council (ECC) have agreed to procure the different strands of the business support programme on behalf of NEEB and hope to go out to tender the week commencing the 26th July. In line with the existing timeframe, it is hoped that contracts for all five initiatives will be in place by the beginning of October and will run for a year. BEIS have confirmed that business support contracts can run past the March 2022 deadline of spending ARG funding, as long as funding is defrayed by this date.

2.6 ECC have developed a funding agreement for each of the local authorities to sign to enable ECC to accept funds from the local authorities and subsequently enter into contracts with the successful bidders on behalf of the NEEB partnership. ECC will not enter into any contracts until the funding agreement has been executed and they have received sufficient funds from the local authorities to fund the business support and skills programme.

3. Conclusion

3.1 An urgency decision will allow Chelmsford City Council to sign the Essex County Council funding agreement and aid the roll out of the NEEB business support programme across North and Mid Essex; providing businesses with much needed business support and contributing towards the economic recovery of the area.