To approve expenditure and approach to delivering the Covid 19 Discretionary Grant Scheme. 

In May the government announced that it would provide Local Authorities with additional funding to target small businesses with high fixed property-related costs but that are not eligible for the current grant schemes. 

This decision considers the targeting and delivery of these additional funds.

That:

(a)       The cabinet member for Environment, Economy and Skills approves the expenditure (£3.2m) of government funding provided for the Covid 19 Herefordshire Discretionary Grant Fund.

(b)       The cabinet member for Environment, Economy and Skills approves the approach to delivering the Discretionary Grant scheme.

The Head of Economic Development and the Economic Development Manager be authorised to approve grant awards to businesses following satisfactory appraisal of the applications received (up to a value of £10,000 per business).

1.         Do nothing - the council could choose to not deliver the Discretionary Grant scheme, however businesses severely impacted by Covid 19 would not receive the available support leading to increased risk of insolvency and loss of local employment.

2.         Open to wider business base - The government guidance states that Local Authorities can use their discretion to consider who should be eligible for the grant, but asks that councils prioritise small businesses in shared offices or other flexible workspaces, regular market traders who do not have their own business rates assessment, Bed & Breakfasts which pay Council Tax instead of business rates, and charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief or Rural Rate Relief.   The council could utilise its discretion to open the scheme to a wider business base.  However, as only 5% (£3.2m) of additional funds are available, we would be unable to provide support to all of the businesses that could apply.

3.         Provide funding on a first come first served basis - The council could assess applications on a first come first served basis, providing funding to eligible businesses in the order they apply until the funds are exhausted.  This would mean those businesses who were quickest to apply would receive the funding, potentially not supporting those in greatest need.  The proposed approach to providing a time limited window (or windows if funds remain) provides all with an equal and fair chance to apply.