Decision Maker: Parvis Khansari (Corporate Director - Place)
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
To approve a discretionary grant policy for
businesses not eligible for the Small Business Grant Fund or the
Retail Hospitality and Leisure Grant Fund
This decision would in other circumstances be
taken by Cabinet. However, in circumstances where the Cabinet is
unable to meet to expedite its functions in a timely manner during
the COVID-19 pandemic, this decision is being taken in accordance
with the power referred to under background below. This decision
will be reported to the next meeting of Cabinet.
This is an additional fund to the Small Business Grant Fund (SBGF)
or the Retail Hospitality and Leisure Grant Fund (RHLGF), and it is
aimed at certain small businesses who were not eligible for the
Small Business Grant Fund or the Retail, Leisure and Hospitality
Fund, and which have relatively high ongoing, fixed
property-related costs, and which can demonstrate that they have
suffered a significant fall in income due to the COVID-19
crisis.
Because of the discretionary nature of the Fund, and the likelihood
of many more applicants than the grant can support, there will need
to be a scoring matrix used by Wiltshire Council in determining
that it is distributed fairly and targets those eligible businesses
which are most in need. Therefore the scoring matrix will be based
upon the following:
- Property costs
- Turnover impact
- Number of employees
- Businesses who have applied for the Coronavirus Job Retention
Scheme are eligible to apply for this scheme.
- Businesses who are eligible for the Self-Employed Income support
scheme (SEISS) are eligible to apply for this scheme as well.
Given the limited amount of funding available in this discretionary
fund, Wiltshire Council does not expect to make grant payments to
businesses in receipt of any other source of Government funding,
with the following exceptions:
The Discretionary Fund will be £5M, drawing on the funding
and guidance provided by central government. Given the outline
criteria above, we have identified over 1000 potentially eligible
applicants, and we therefore anticipate the fund will be
oversubscribed. Consultation with business organisations has
recommended adoption of the following principles
- A higher number of grant payments at a lower amount would be more
beneficial for the economy
- The funding should recognise those who missed out on earlier
grant funding due to technical classification
- The funding should be aimed at small businesses who have faced
the greatest impacts.
As such, Wiltshire Council will implement a grant level of
£5k per Business. In order to ensure all eligible businesses
have the opportunity to apply for the scheme, the Council will
establish a phased approach to the grants scheme to assess and
quantify the level of demand for funding from businesses that fall
within the priority areas set out in the Government guidance and
meet the eligibility criteria and evidence requirements. There will
be a two week application window from 8th June 2020 to close of
business on 22nd June 2020. No grants will be paid until the
application deadline has passed and Wiltshire Council will make
payments after the 22nd June.
After the application window has closed and grants awarded there
will be an assessment of whether there is any remaining funding
left. The Council may then offer future phases of grant funding and
further information about this will be made available at the
appropriate time, should it be required. In line with the
guidelines, the first phase will include any businesses falling
within the following categories:
- Small businesses in shared offices or other flexible workspaces.
Examples could include mills, units in industrial parks, science
parks and incubators which do not have their own business rates
assessment;
- Regular market traders with fixed building costs, such as rent,
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.
We will require businesses to demonstrate that they meet the
eligibility criteria by self-certification and submitting some
evidence of income and outgoings. Grant conditions will ensure
grants are state aid compliant There is a requirement for all
grants made under this scheme to be state aid compliant and a
de-minimis level will apply to this scheme. Applicants will need to
be paying at least £250 rent per calendar month for their
business premises to qualify to apply for a grant.
If the fund is oversubscribed with the applications received, the
Council reserves the right to amend the grant levels to a pro-rata
basis, based on the applications received and approved, as a way of
dealing with this situation, should it arise. If a business is in a
sector that has not been allowed to open or provides services that
are not permitted due to social distancing rules and have not been
able to move to online services, the level of income lost will be
more significant to that of a business still able to operate but at
a reduced level. This will be considered in confirming the grant
amount to be offered.
Grant income received by a business is taxable therefore funding
paid under the Local Authority Discretionary Grants Fund will be
subject to tax. Only businesses which make an overall profit once
grant income is included will be subject to tax.
I confirm that in making this decision I have considered the
following in line with Wiltshire Council’s
Constitution:
Key decision requirements: Y
Views of relevant cabinet member(s), committee chairman, area
board(s): Y CEOs brief the Leader on a daily basis.
Consideration of the area boards and delegated decision checklist
for officers on the issue of when and how to involve local
councillors and area boards in decisions about local services:
NA
Implication of any council policy, initiative, strategy or
procedure: Y
Consultation in accordance with requirements and expectations of
consultation with the public: Y - We have consulted with the
following organisations: Federation of Small Businesses; Wessex
Chamber; Salisbury BID; Chippenham Chamber of Commerce; Swindon and
Wiltshire Local Enterprise Partnership; VisitWiltshire
Range of options available: Y
Staffing, financial and legal implications: Y. These have been
fully considered in design of application form and grant agreements
and criteria.
Risk assessment: Y
Equality Implications: Y
Involvement of statutory officers and/or directors: Y
Regional or national guidance from other bodies: Y. The scheme is
aligned with the Government guidance issued on 22/05/2020.
The council’s constitution: Y
Procurement Process: Y
The scheme has been designed to comply with
government funding conditions and guidance. Other options
considered included schemes with variable amounts of grant but
these were discounted after consultation with business
representative groups and in line with the desire to reduce
unnecessary bureaucracy and support businesses as quickly and
efficiently as possible.
Conflict of Interest: Not applicable
Background: Pursuant to paragraph 4 of Part 3 Section D, the Directors of Wiltshire Council are empowered to take all necessary decisions in cases of emergency. This decision is being taken by Sam Fox using these powers in circumstances where the Director concerned believes that there is a risk of damage to property, a threat to the health or wellbeing of an individual and/or that the interests of the Council may be compromised if this decision is not otherwise taken.
Contact: Sam Fox, Interim Corporate Director - Place Email: sam.fox@wiltshire.gov.uk.
Publication date: 11/06/2020
Date of decision: 04/06/2020
Accompanying Documents: