Head of Resources to report.

The Head of Resources provide the Committee with an update on the Business Grant Schemes.

In relation to the Small Business Grant and Retail, Hospitality and Leisure Grant Scheme, the Head of Resources advised that:

·         the schemes were announced on 11 March 2020 by the Chancellor in his Budget speech.  On 17 March 2020 the scheme was expanded on in the Chancellor’s announcement.  Detailed guidance was issued by MHCLG (Central Government) on 24 March, with the hope that payments would start to be made by early April. This guidance had changed a few times by the following week. On 25 March 2020, Civica the Software Company used by the Council, announced work on their grant module and associated form.  The Council’s Communications team planned and updated messages on Website for businesses and automatic phone messages with updated information throughout.

·         1 April 2020 £51million funding was paid to NDC. This was the largest allocation and number of eligible businesses in Devon, including the unitary Councils.

·         6 April 2020 the online form was transferred to NDC for testing and that went ‘Live’ on 9 April 2020. This was only two weeks after guidance received by MHCLG.

·         The NDC online form automatically integrated to the back office system, therefore applicants could only apply if ‘identified as eligible’ as it checked the back office system. A number of cross checks were carried out, including bank details that enabled an interface with an automatic payment system which allowed daily payment runs in the early days.  A much quicker end-to-end process for the business applying.

·         Even though the Authority may have been few days after some Councils with the form going live, assurance was gained which confirmed there was a competent online integrated process that carried out substantial checks (which a manual form would not have performed) and mitigated and reduced the risk of any fraudulent applications being paid.   Many Revenues and Benefits staff worked all Easter Weekend including the bank holidays plus the following weekend to deal with the initial surge of applications.

·         On 9 April 2020 the first payments were made (same day as go-live)

·         By 17 April 2020 almost 30% had been paid out (£12million in the first week)

·         By 30 April 2020 (three weeks from go-live) 65% had been paid out (£29million) to 2500 businesses.

·         As of 8^th September, £43million had been paid to 3775 businesses (96% of those eligible). 163 eligible businesses did not apply even though the Council tried numerous times to write, contact, persuade etc.   Grants had been awarded to 3775 of the 3802 applications so far.

·         Monthly assurance returns were made to MHCLG, outlining that risk assessments had been carried out.  In relation to the 3775 payments;

o   Four payments were identified where bank/Local Authority identified an error in the payment and/or account details (value £40,000); all four payments have been returned to the Council and no grants had been identified as fraudulent transactions.

o   Three grant payments were identified as non-compliant (Value £30,000); one had been recovered to date (value £10,000).

o   This had all been reported to MHCLG and further assurance return was due shortly with updated position.

·         In addition; Government announced “Discretionary Business Grant” scheme – to the value of 5% of the above main grant scheme (£2.25million); the Council ran this through our Economic Development team as they had close links to local businesses and especially those that had fallen outside the scope of the original grant scheme. 

·         The Discretionary Business Grant scheme was launched on 1 June 2020, using a Devon-wide set criteria and online application form, payments were made within first week.  Scheme was now closed and team were processing the last tranche of applications; having fully allocated the £2.25million fund.

·         Lobbying had taken place via the Member of Parliament to try to retain all/some of the residual funds within North Devon (of an estimated £4.2 million which was the amount left over from the original £51million allocation of Small Business Grant and Retail, Hospitality and Leisure Grant scheme within North Devon) to further the discretionary scheme and support more local businesses that need the financial assistance.

·         In addition, £20million of expanded retail discounts had been applied to 1100 Non Domestic Rates accounts: further adding to the workload to the team.

·         Overall financial assistance to support North Devon businesses of over £65million through the pandemic.

·         The Head of Resources added that, bearing in mind the context of what he had outlined overall, the speed and pressure from Government to ‘support businesses’ quickly; he could not be prouder of the team for what they had delivered under exceptional circumstances.

RESOLVED:

(a)          that that possible options for Award Nominations for the team be sought by the Auditors,

(b)          that the report be noted.