This report seeks to approve external allocations for the implementation of the Marches Energy Grant (formerly the Marches & Worcestershire Clean Growth Programme); which will be delivered in conjunction with Worcestershire County Council (WCC) as the lead partner. This programme is set to replace the outgoing Business Energy Efficiency Programme (BEEP) and the completed Marches Renewable Energy (MarRE) programme..

That:

a) Herefordshire Council becomes a partner in the Marches Energy Grant Programme (formerly the Marches & Worcestershire Clean Growth Programme) with the partnering authorities, led by Worcestershire County Council as the Managing Authority;

b) The Council as a partner of the programme, accepts the grant allocation of £525,000 to be held by Worcestershire County Council, from the Marches Local Enterprise Partnership to implement the Marches Energy Grant;

c) Utilise the UK Shared Prosperity Fund allocation £176,333 as match funding to the Marches Energy Grant;

d) Delegate all operational decisions relating to the implementation of the Programme to Interim Service Director Highways and Transport.

1. Not to participate in the programme. This is not recommended as it will not result in the provision of business assistance, technical support and capital grants to Herefordshire. This assistance will support businesses increase competitiveness, to minimise their utility costs and to reduce their carbon emissions. This will result in a risk of not achieving the council's strategic objectives within the Core Strategy, Carbon Management plan, Marches LEPs Energy Strategy and Strategic Economic Plan.

2. Not to utilise the dedicated Climate Reserve to match fund the programme should the UKSPF allocation not materialise. This would place an unbudgeted risk on the council as the UKSPF allocations are yet to be confirmed by central government. This would result in both reputational risk as the council would be forced to leave the Programme and financial risk as the match funding requirement becomes a revenue pressure.