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Decision Maker: Council
Made at meeting: 17/11/2021 - Council
Decision published: 27/01/2022
Effective from: 17/11/2021
Decision:
There were
no declarations of interest received at this point in the meeting.
The Additional Restrictions Grant (ARG) Scheme is the means by which the council is able to deliver the business support announcement by Central Government on 31 October 2020. The scheme provides essential financial support to businesses who have not been able to access it through other Local Restrictions Support Grant schemes or more recently have been impacted by the spread of the Omicron variant.
Being a discretionary scheme, strict eligibility criteria were initially set to limit the number of awards. Alterations to the scheme have been necessary (a) to enable funds to be spent (b) to keep pace with the direction set by Central Government announcement (c) to support the local economy and the town’s priorities.
Decision Maker: Director of Finance
Decision published: 26/01/2022
Effective from: 21/01/2022
Decision:
The top up ARG announced on 21 December 2021 by HM Government in response to the Omicron variant is confirmed, with an additional allocation of £149,015.27. Combined with the existing allocation the proposed changes to the scheme will allow additional awards to be made and existing funds to be effectively targeted.
The ‘top up’ allocation of £149,015.27 will be targeted towards sectors impacted by the Omicron variant. The existing ARG allocation will be directed towards continued business recovery through Strategic Business Grants now that the existing application phase has drawn to a close and demand has declined.
The Council reserves the right to re-allocate budget funds between Omicron support and Strategic Business Grants according to demand and local economic need/factors.
The following changes to the scheme should be read in addition/conjunction to those in the Additional Restrictions Grant Scheme Policy (noting additional Officer Delegation amends). The alterations/amendments to the scheme are effective from 17 January 2022 and will be subject to review where necessary.
The ARG will enable hospitality and leisure businesses that are ineligible to an award from the Omicron Hospitality and Leisure Grant (OHLG) scheme to be supported along with targeted sectors impacted locally by the spread of the Omicron variant. Grants will also be targeted towards growth and recovery which remains key to providing sustainable long term benefit to the local economy.
With this in mind remaining ARG funds will be refocused towards:
Strategic Business Grants (SBG) – Payments of up to £50k targeted to Middlesbrough businesses that directly link with the Council’s Strategic Plan (2021-2024), the Middlesbrough Mayor’s priorities,
Middlesbrough Digital Enterprise Zone (2017) and the Tees Valley Strategic Economic Plan (2016-2026). Businesses will be required to demonstrate their existing presence and/or potential for expansion directly meets the scale and scope of the Councils corporate strategic aims (reference ARG Officer delegation 18.5.21). Previous recipients of an SBG are excluded from reapplying.
ARG Omicron -
Eligible Sectors include (evidence based in order to qualify):
• Hospitality & leisure defined as part of the OHLG guidance that have been specifically excluded from applying to the OHLG scheme (e.g. gyms)
• Personal Care defined as hairdressing, barbers, beauty, professional make up services (commercial premises based)
• Wedding/Events Co-ordinators (commercial or domestic premises based)
• Audio Visual Entertainment (commercial or domestic premises based)
• Supply chain businesses that specifically support hospitality & leisure sector (commercial or domestic premises based)
• Travel consultants & tour co-ordinators (commercial or domestic premises based)
• Language schools (commercial based)
• Car part/bodywork repair garages (commercial based)
• Private nurseries (commercial based)
• Catering businesses (commercial based)
• taxi operators & mini bus hire (commercial based)
• Riding therapy centres (commercial based)
• Taxi drivers & driving instructors (domestic premises, fixed costs evidence essential. Awards are capped at £500 per driver/business.
In addition where a business falls within the above eligibility criteria and there is evidence of rejection by another Local Authority due to a difference in approaches or other genuine reason, Middlesbrough Council reserves the right to make an award. The application must satisfy our scheme tests and domiciled in Middlesbrough local authority area.
Businesses with commercial premises or other substantial fixed costs will be able to apply. Businesses in the startup phase and new to trading with a commercial premises liability are eligible if they can demonstrate active trading.
The amount of the award will be determined primarily by the rateable value of the premises or if this is not available the annual rental value. Fixed costs evidence will be required where a rateable or rental value is not evident. In home based circumstances the Council must be satisfied that the business falls within the eligibility criteria and can evidence significant fixed costs relating to the business.
This scheme is not designed to cover loss of earnings, wages or personal income. Home based businesses will be required to declare this as part of their application.
Outcomes of the ARG scheme include:
• Strengthened local economy
• Resilience within the marketplace
• Safeguarding of jobs
• Viable business base
• Potential to avoid increased business rates bad debt.
• Reduced decline in commercial unit occupancy rates
• Visible improvements to the high street.
Simple eligibility criteria and conditions will allow businesses to access fair and proportionate grant awards that mirror the OHLG scheme with one off grants of up to £6K.
Awards:
• Businesses with a rateable value of exactly £15,000 or under on 30 December 2021 will receive a payment of £2,667
• Businesses with a rateable value over £15,000 and less than £51,000 on 30 December 2021 will receive a payment of £4,000
• Businesses with a rateable value of exactly £51,000 or over on 30 December 2021 will receive a payment of £6,000
Where the above do not apply, grants will be awarded based on the annual rental value using the same rates. Where significant fixed costs only are used to determine an award the payment will be a flat rate of £1334. Taxi drivers & driving instructors based in domestic premises must provide significant fixed costs evidence (e.g. vehicle lease, vehicle insurance, rental). Payments capped at £500 per driver/business.
Eligible criteria includes:
• Businesses in start-up phase able to demonstrate active trading and liability for commercial premises
• Businesses located within business premises on a full commercial basis i.e. liable for rates or rent or with significant fixed costs if home based
• The business is based within the Middlesbrough local authority area
• Businesses that have not received approved/recognised business agency support or recovery planning support will be encouraged to link with Middlesbrough Council’s Business Recovery Officer to enhance business sustainability
• Ability to demonstrate that business operations continue to be impacted by the Covid 19 pandemic. For example the business has not returned to pre pandemic capacity levels or operations continue to be impacted through the recent Omicron variant. Impacts could include financial; delay in locating suitable premises, reduced footfall, staffing reductions/isolations “pingdemic”, recruitment issues; growth plans impacted.
• The business must have a suitable business bank account or provide evidence of business activity through a nominated account in the same name as the business applicant
• Previous recipients of the Covid / ARG support grants may apply
• The business must pass the pre-payment assurance grant checks
Exclusions:
• National retailers
• Retail
• Businesses seeking support for wage/staffing costs
• Amusement Arcades
• Adult Gaming & Gambling centres
• Fast Food
• Takeaways
• Banks/Financial Institutions
• Businesses with multiple linked branches
• Franchises
• Businesses that rent a chair or operate within a small space of an existing business operation
• Market traders
• Businesses already in receipt of or in the application process of the following 20/21 Middlesbrough Council Grant Schemes:
o Strategic Business Grant
o Heritage Action Zone Development Funding
• Property Developers and Commercial Property Landlords
• Personal trainers providing sessions on a 1-1 or group basis
• Wage subsidy /staff costs and personal income
Applications will be subject to pre-payment assurance checks and assessed regularly. The scheme will close on 31 March 2022, all applications must be received by the 17th March 2022 to allow time for pre-payment assurance checks, decision and payment.
Awards will be successful where the assessing team is satisfied that the applicant meets the criteria and the evidence provided is appropriate and relevant. The decision of the assessing team is final.
Spend will be monitored weekly and scheme eligibility will be reviewed to ensure it continues to meet local economy needs. Funds are limited, applications will be processed on a ‘first come first served’ basis and applications must be submitted with all of the relevant supporting information otherwise the application will be declined.
Reason for Decision:
Alterations to the scheme have been necessary (a) to enable funds to be spent (b) to keep pace with the direction set by Central Government announcement.
Lead officer: Ian Wright
The Executive Member for Regeneration approves the proposals to work in partnership with Tees Valley Combined Authority and contractors EB Chargers to install electric vehicle charging points within Middlesbrough Council operated Car Parks.
Decision Maker: Executive Member for Regeneration
Made at meeting: 12/01/2022 - Executive Member for Regeneration
Decision published: 25/01/2022
Effective from: 12/01/2022
Decision:
The Director of Regeneration submitted a report the purpose of which was to ask the Executive Member for Regeneration to approve the proposals to work in partnership with Tees Valley Combined Authority (TVCA) and contractors EB Chargers to install electric vehicle charging points within Middlesbrough Council operated Car Parks.
The report outlined that Middlesbrough Council was working with TVCA and the four other neighbouring authorities to develop a suite of infrastructure improvements and policy, to ensure consistency for provision across the region.
TVCA had identified an allocation of funding within its Transforming Cites Fund allocation to support the delivery of publicly accessible EV charging points. As part of this programme, TVCA undertook a tender exercise to appoint a preferential supplier to work with. There were a number of differing methods to delivering EV Charging Points (EVCP) ranging from fully funded/maintained at Authority’s expense, to fully operated/installed and managed by a private company.
The report advised that EB Charging provided the most competitive tender model. Their business model worked on the basis of charging end users for the volume of energy that is used during a charging session. As part of the arrangements, TVCA had negotiated a share of the profit, which would be invested back in to the regional programme to deliver further infrastructure improvements.
The net cost to the Council was nil and it benefited from the installation of infrastructure at no cost to the authority, with all associated maintenance and administration costs being borne upon EB Charging. A legal agreement between the organisations established the requirements and expectations from all parties. There were no restrictions to the minimum number of chargers to be installed, or that EB was a sole provider of EVCP in Middlesbrough; enabling the Council to enter into similar arrangements with other providers at any time in the future.
OPTIONS
Other potential decisions and why those have not been recommended:
OPTION 1
Do nothing. This was not recommended, as the Council needed to provide EVCP facilities aligned with increasing demand across its own workforce and any other electric vehicle using its network. Doing nothing would not help the Council to realise the benefits of EV uptake.
OPTION 2
Invest the Council’s own resources in to the provision of EVCP. The cost assessment to provide the proposed infrastructure improvements was £230k. This required a significant capital investment that was currently not budgeted for. This approach exposed an element of risk to the authority if uptake was not sufficient to make a return on the investment. This proposed approach may be profitable to EB/TVCA, but this would be monitored, and the Council has opportunities to invest in its own charging facilities at any time.
OPTION 3
The Council undertakes its own “procurement exercise” and appoints a similar contract of its own. This had been dismissed, as under the current arrangements, TVCA have been able to benefit from economies of scale due to being able to provide a regional market opportunity. If the Council was to undertake a similar procurement exercise, it is believed that the returned tender offers would not be as viable in terms of overall benefit. This would also mean that the Council would not benefit from the regional policy / approach being developed and would have to implement its own strategies.
ORDERED:-
That the proposal for the Council to work with Tees Valley Combined Authority and contractors EB Chargers to install Electric Vehicle Charging Points at key Council operated Car Parks within Middlesbrough be approved.
REASON:-
The decisions were supported by the following reason:
The proposal would allow the Council to provide a suite of EV Charging Points at no cost to the authority, while supporting TVCA to further invest into the charging network in Middlesbrough.
Wards affected: Central; Marton East;
Lead officer: Chris Orr
To ask the Executive to approve investment up to £1,000,000 to tackle eyesore sites.
Decision Maker: Executive Member for Regeneration
Made at meeting: 13/10/2021 - Executive Member for Regeneration
Decision published: 25/01/2022
Effective from: 13/10/2021
Decision:
The Director of Regeneration and Culture submitted a report, the purpose of which was to ask that the Executive approves investment of up to £1million to tackle eyesore land and property in Middlesbrough, including the possible acquisition of sites, if the approved business case recommends it.
The report outlined that a previous report about addressing eyesore sites was approved by Executive in March 2020. It set out ambitious plans to address eyesore sites and this report is to ask for the investment to realise these plans.
Where acquisition of a site is being considered a business case will be drawn up on a site by site basis. If the business case is approved by the Directors of Regeneration and Culture and Finance then contact will be made with the owner to try and voluntarily acquire the site in accordance with the Council’s Asset Acquisition Policy.
Where owners will not improve their eyesore sites or dispose of the site to someone who will improve it then the Council has a range of enforcement options that may be considered including the use of compulsory purchase powers.
OPTIONS
Other potential decisions and why these have not been recommended
Taking no action – maintaining the status quo is not recommend as it will lead to eyesore land and property continuing to have a negative impact on communities, blighting the attractiveness of the town and preventing opportunities for Middlesbrough’s economy.
ORDERED
That the Executive
approves investment of up to £1million to tackle eyesore land and property in
Middlesbrough, including the possible acquisition of sites if the approved
business case recommends it.
REASON
The decisions were
supported by the following reason:
Pro-active action has
been used to tackle eyesore sites in Middlesbrough since at least 2009 and
significant progress has been made. The acquisition of sites will allow
solutions to be found for the most prominent and/or problematic long-term
eyesore sites. This supports the Council’s Strategic Plan.
Wards affected: (All Wards);
Lead officer: Richard Horniman
The approved FHSF programme and bid set out provision for cultural investment which supported integration of culture within the high street setting, expansion and animation of cultural assets, supporting the cultural sector capacity and investing in events infrastructure.
This decision seeks to provide a match funding grant of £37,000 to the arts organisation ‘Auxiliary’. The Auxiliary have secured £150,000 from Key Fund and £100,000 from Arts Council England, in order to purchase 51 Station Street and expand the offering at the building.
Decision Maker: Director of Finance
Decision published: 18/01/2022
Effective from: 18/01/2022
Decision:
The Auxiliary are an artist led space that support over 25 artists through studio space, exhibition space and lead on Middlesbrough Art Weekender as well as Sonic Arts Week. They engage with over 10,000 residents every year and have successfully raised significant Arts Council England funding through their cultural recovery strand and project grants strand. They will be applying to and have been encouraged by Arts Council England to apply as a National Portfolio Organisation.
The organisation are uniquely placed to secure National Portfolio status, providing a huge boost to the cultural infrastructure of central Middlesbrough and a platform from which to expand and support the cultural sector. To secure this third party match funding, the FHSF programme has been aligned to enable investment of £37,000 to secure the freehold purchase of the property and support the cultural sector.
Reason for decision:
The funding has been secured for the majority of the purchase of the building, the landlord my sell the building to another bidder if the council do not provide the match funding.
This secures the organisations’ place in Middlesbrough as a key player of the cultural sector.
The funding objectives and outcomes are consistent with the approved business case and bid for FHSF funding allocation and programme objectives.
Lead officer: Richard Horniman, Ian Wright