Report of the Chief Executive (enclosed)
Minutes:
In response to a request of the Chair, the Committee received a report informing the Committee of funding allocated to businesses under the Chorley Business Investment Growth (BIG) scheme.
Chorley Council currently provides a diverse range of support services to local businesses to deliver its key commitment of ‘Developing a Strong Local economy’. The Chorley Investment for Growth (BIG) capital grant scheme assists local companies to expand and create jobs. This compliments existing Council and partners grant schemes in providing financial support for capital expenditure to businesses with growth ambitions. It has proved helpful to businesses in wanting to take the next step in their development and create employment locally in line with the council’s Employment Charter.
Guidance specifies what work is eligible to receive funding and can include the construction of new buildings; the refurbishment/adaptation of existing business premises; site engineering works; the purchase of plant and machinery; signage; hard/soft landscaping and security improvements.
The funds support small and medium sized enterprises (SMEs) who are planning to invest in the range of activities detailed above. An SME is a company which employs fewer than 250 persons (full time equivalent), and has a turnover of less than 50 million Euros and/or has an annual balance sheet of less than 43 million Euros. No more than 25% of the company’s capital or voting rights may be held by a parent company which is not itself an SME. Businesses can apply for 50% of total eligible project costs up to a maximum of £10,000. Grants are based on £2,000 per job created but ultimately the grant scheme aspires to achieve far greater job creation than this level.
The Chorley BIG grant payments are phased, with all payments being paid to businesses once the works have been completed or equipment purchased and grant assistance is conditional on receiving business advice and support from the Council’s Business Advisor whose remit is to support existing businesses.
Following a review of the Chorley BIG grant in January 2014, a new element was introduced. The ‘Community Repayment’ requires applicants to provide payback to the value of 50% of the grant received to local community registered charities or social enterprises. This can be offered in either goods or services provided by the applicant or as a time value to allow businesses to share their expertise with local organisations.
Since the start of the grant scheme nine Chorley BIG grants have been approved to a total of £72,302. 15,016 square feet of floor space will be improved or developed and 51 jobs forecasted to be created.
The Community Repayment Scheme has been in operation since April 2014 and has been well received by the applicants who have worked on appropriate payback activities with the Business Advisor. These have included free workshops for the community on topics such as health and wellbeing and stress management provided by the Centre for Whole Health; free use by children of a new sensory room planned at Gelston Manor Day Nursery, and a design competition with students who can see their winning design fabricated at CSM Chorley Ltd.
The Chorley BIG grant scheme will continue into 2015/16 with additional funding agreed through the budget allocation process.
RESOLVED – That the report be noted.