Leader Ref No: LDR19 (14/15) Be the Business Programme 2014/15: Funding allocations. Report by Director of Economy and Strategic Manager-Economy

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1 Leader Ref No: LDR19 (14/15) Be the Business Programme 2014/15: Funding allocations Report by Director of Economy and Strategic Manager-Economy Key Decision: No Part I Electoral Division(s): Chichester South, Hassocks and Victoria, Southwater and Nuthurst, Lancing,Arundel and Wick, Langley Green and West Green,Southgate and Crawley,Worthing West, and Henfield. Executive Summary As part of the Kick Start programme, a grant programme called Be the Business was set up in 2013/14. On 14 February 2014, as part of the Performance Framework and Revenue Budget & Capital Programme 2014/ /18 decision, an allocation of 500,000 was made to the programme for 2014/15. This is in addition to the 173,000 allocated to the programme in February 2014 by the Capital Investment Approval Group. A total of 673,000 was therefore available in 2014/15. The aim of the programme is to help businesses in West Sussex to start up and to grow, and to drive the levels of entrepreneurship, productivity and employment growth within the county. Applications to the fund were considered during the first round by a panel consisting of the Leader of the Council, the Cabinet Member for Finance and the Gatwick Diamond Initiative Director, who made recommendations to the Leader on how to award funding. A total of 24 bids were approved, for a total of 488,198 to deploy the first allocation of this year s fund. However, one of the bids, worth 10,000 was withdrawn after approval, meaning a total allocation in round one of 478,188. The second call for proposals closed on 22 January A total of 59 bids were received by the deadline and 24 considered by the panel, with a result of 10 bids recommended for approval, for a total of 159,092. The remaining budget of 35,710 is currently unallocated. Recommendation That the Leader approves the allocation of 159,092 from the 2014/15 Be the Business grant fund to support the businesses and their proposals listed in paragraph 3.1. That the remaining funding 35,710 supplements the business support budgets in 2015/16.

2 1. Background and Context 1.1 As part of the Kick Start programme, a grant programme called Be the Business was set up in On 14 February 2014, as part of the Performance Framework and Revenue Budget & Capital Programme 2014/ /18 decision, an allocation of 500,000 was made to the programme for 2014/15. This is in addition to the 173,000 allocated to the programme in February 2014 by the Capital Investment Approval Group and subsequent approval of the members Capital Group. A total of 673,000 is therefore available in 2014/ The aim of the programme is to help businesses in West Sussex to start up and to grow, and to drive the levels of entrepreneurship, productivity and employment growth within the county. 1.3 The application process for 2014/15 grants was opened on 11 July 2014 with a deadline of 15 September 2014, and guidelines and the application form were made widely available and published in the County Council s website. Information and development workshops were held in August and were attended by 59 organisations. One to one sessions were held in August and September and were attended by 56 organisations. Feedback from attendees showed that they highly valued this approach and that the sessions held assisted organisations to bid effectively for the fund and to put them in touch with sources of support. 1.4 Since its launch in July 2014 the Be the Business programme 2014/2015 has been widely publicised using a variety of means including the Business West Sussex and the Be the Business websites, press releases, information sessions, partners networks, bespoke s and social media. In addition, support to develop proposals has been made available at workshops and 1 to 1 sessions during August and September. 1.5 In 2014/15 the County Council has allocated 50% of the programme funding to Small and Medium size Enterprises (SMEs) operating in the following sectors, which the County Council considers important to the economy of the county: Manufacturing, particularly linked to healthcare, aviation or marine industry Low carbon and renewable technologies Tourism and local food Care Land based businesses 1.6 The guidelines outlined that the County Council expected business proposals to start-up or grow a business that could create and safeguard jobs. 1.7 The grants were for both capital and revenue items and some examples of activities expected were: Purchase of machinery and equipment Premises refurbishment/expansion

3 Feasibility work relating to business expansion Development and implementation of business strategies to improve sales and commercial performance Knowledge transfer-related activities Product development Efficiency improvements 1.8 A total of 59 bids were received by the deadline for the second round. Projects went through due diligence and appraisal processes and then they were considered by a panel comprising of the Leader of the Council, the Cabinet Member for Finance and the Gatwick Diamond Initiative Director. The panel met on 27 February to consider projects and to recommend bids for funding. 2. Consultation 2.1 Members The Leader and Cabinet Member for Finance were consulted on the proposed 2014/15 criteria and process for the fund. Local Members have also been made aware of the projects put forward and invited to issue comments. 2.2 The Capital Investment Approval Group (CIAG) were consulted on the establishment of the Be the Business programme in February 2013 as part of the activities under the Kick Start initiatives. 2.3 Internal Legal Services have reviewed the guidelines and application form and they have provided support and expertise to ensure the grants contracts issued to the businesses that receive the grant funding comply with the conditions required by the County Council, including levels of insurance. Successful candidates will be issued a grant acceptance form that is signed on behalf of the County Council. 3. Proposal 3.1 It is recommended that the following proposals be supported and funding allocated accordingly. 1 Company Proposal Funding requested Castle Aerial & Wellbeing Refurbishment of premises 9,000 2 Chichester Canal Trading Ltd 3 FirstCol Services Ltd 4 Graphic Supplies (UK) Ltd 5 Horsham Coffee Roaster Purchasing of new boat 25,000 Delivery of a new care service Brand and product development Equipment purchase and business expansion 25,000 7,500 13,475

4 6 Business and staff Jana Reinhardt development 11,170 7 Business expansion through Lister s Brewery additional premise and new 10,000 equipment 8 RF Solutions Ltd Purchase of new machinery 25,000 9 Seevent Plastics Ltd Refurbishment of factory 25, Stan s Bike Shack Expansion of sheltered café 7,947 TOTAL 159, Other Options considered The proposal could have been to recommend other bids for approval or to decline the bids but the due diligence and appraisal processes are sound. Other grant funds are available for different forms of community proposals such as the Members Big Society Fund or the Community Initiative Fund but their approach were not considered to be suitable to assess grants for businesses. 5. Resource Implications and Value for Money 5.1 The 673,000 of funding for 2014/15 is made up of 500,000 approved on 14 February 2014, as part of the Performance Framework and Revenue Budget & Capital Programme 2014/ /18 decision and 173,000 allocated by the Capital Investment Approval Group and subsequent approval of the members Capital Group. The applications set out in paragraph 3 that have been recommended for approval are within this budget. 5.2 The Be the Business grant programme is enabling the County Council to invest in long term sustainable outcomes for the local economy and local communities. 5.3 Each application for the Be the Business grant programme has been considered in terms of value for money and sustainability. Particular attention has been paid to the capacity of each recommended application to generate jobs and create positive economic impact for the county. 5.4 As part of the process to establish the suitability of the proposals further information on the applications was sought whenever necessary, considering particularly issues relevant to the sustainability of the business and economic impact of the proposal. 5.6 The Economic Development Team and business support experts commissioned specifically for this programme will work with successful applicants to ensure that the proposals to be delivered provide good value for money and that their impact on the local economy is maximised.

5 5.7 Of the total budget available for this year s programme, 35,710 is currently unallocated. We recommend that the remaining funding, 35,710 supplements the business support budgets in 2015/ Impact of the proposal 6.1 Equality Duty. An Equality Impact Report has not been undertaken as it is not considered reasonable to test such business initiatives against the Public Sector Equality duty requirements. The contracts with successful bidders however make provision for assurance that money provided by the County Council is spent in a way that complies with the duty in terms of equality of opportunity and measures to prevent discrimination. 6.2 Crime and Disorder Act Implications There are no known Crime and Disorder Act Implications unless otherwise recorded in the individual application. 6.3 Human Rights There are no known Human Rights implications unless otherwise recorded in the individual application. 6.4 Social Value The grants promote the creation of local jobs and apprenticeships by local businesses and the funding will help create growth amongst businesses in the County or it will help start new businesses/enterprises. 7. Risk Management Implications 7.1 The risks associated with this programme relate to the ability of businesses to deliver their respective projects and to their ability to achieve the benefits captured in their proposals. 7.2 In order to mitigate such risks a due diligence process has been put in place to assess the strength of the businesses and the viability of their proposals. All the businesses recommended have passed such due diligence process. 7.3 In addition the proposals in this report were independently appraised by external experts commissioned by The County Council and their comments were considered by the Panel. 7.4 A robust contract prepared by Legal Services will be put in place to ensure that the projects are delivered as agreed and to make conditions for delivery clear to the businesses receiving the funding. 7.5 Monitoring arrangements have been put in place to ensure that any future risks are addressed and mitigated to ensure delivery as proposed of the projects. Quarterly reports will be submitted to the County Council by the successful businesses to show how progress is being made. In addition the County Council reserve the right to inspect the project and the progress made at any time provided reasonable notice is given.

6 Caroline Haynes Director of Economy Duncan Barratt Strategic Manager-Economy Contact: Ana Fajardo Background Papers None