Creative Cluster Challenge Fund for Screen Industries Guidelines for applicants
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1 Creative Cluster Challenge Fund for Screen Industries Guidelines for applicants Closing date for applications: 18 September 2015 The BFI reserves the right to amend these guidelines from time to time or to withdraw the Fund. British Film Institute. July
2 Background The UK is a global hub for the creative industries. It is currently Britain s biggest growing sector, generating 8m per hour for its economy. Significant Government investment through targeted tax reliefs for film, animation, high-end television, children s television and video games, combined with funds from the National Lottery, UKTI, Creative England, Innovate UK and Europe has helped to stimulate production further. New demands on an already successful sector have led to a concentrated focus on creative assets (both people and resources) in the South East. With UK production levels projected to grow, further investment is needed into areas outside of the South East in order to sustain rapid growth and maintain our international competitiveness. Rebalancing growth across the UK is also vital if we are to meet or exceed the Government s target to double inward investment and export by Such growth will be dependent on growing capacity and capability outside of London and the South East. Identifying emerging regional clusters and helping to support them to build on their nascent strength is something the BFI is very keen to do. What is a creative cluster? The usual definition of a business cluster is..geographic concentrations of interconnected companies, specialised suppliers, service providers, firms in related industries, and associated institutions in particular fields that compete but also co-operate 1. The benefits associated with clustering include: Strategic opportunities to drive significant increases in productivity and job creation with the benefits of economies of scale A strong cultural core Access to a broad skilled taskforce and knowledge base Shared services and infrastructure Local knowledge spillovers, particularly through links with local universities and institutions delivering further education Spillover benefits to other parts of a regional or local economy e.g. the service sector Fresh sources of innovation Local and national leadership forging links with international creative cities and clusters to catalyse trade opportunities and wider investment potential An ability to raise awareness nationally and globally of the facilities provided in the region. London is a prime example of a dynamic, creative and economically successful centre for the screen industries. It is international in nature, cosmopolitan in feel, with a legendary cultural core. 1 Michael Porter: The Competitive Advantage of Nations 2
3 Purpose of the award The purpose of this one-off Creative Cluster Challenge Fund is to encourage and support emerging screen industry clusters (film, television, animation and video games) that have demonstrable potential - to test the case for their growth. Our aim is to support the development of business cases which clearly identify the growth potential and associated benefit to the region of a screen cluster, and present a compelling case for future investment. Over time such a cluster should have the capacity to lure significant players, individuals and companies to establish a presence in the region and increase its visibility and brand at international level. These business cases are also intended to help inform the BFI s future thinking both in terms of its advocacy role and future strategic use of Lottery funds. The BFI has initially allocated approximately 250,000 towards this Fund and from it expects to make two or three awards towards the costs of developing a detailed business case to prove the potential of clusters to act at an international level in support of the UK s economic and cultural growth ambitions. Successful applicants will have the full support of all BFI departments to test and build the plan. We would expect applicants to forge strong, two-way relationships with our funded partners, as appropriate, to ensure that strategies are joined up and are adding value. Our partners include Creative Skillset, the British Film Commission, Creative England, Ffilm Cymru Wales and Northern Ireland Screen. The business case should determine whether or not there is a compelling commercial case aimed at potential investors (whether public or private, UK or global) by: demonstrating leadership with a commitment to achieve an international profile setting out the commercial opportunities, imperatives, strengths and unique selling points for the cluster including scale, skills, innovation, infrastructure, talent and incentives including an audit of infrastructure and identify future need and / or the potential for upgrades aiming to create or augment overseas partnerships for increasing inward investment and export creating opportunities for increasing and enhancing the skillset within the region strengthening the region s cultural offer encouraging further networking and knowledge sharing within the cluster. Who can apply? 3
4 We are looking to receive applications from a working consortia from distinct areas of the UK (that can demonstrate there is existing growth in the media sector in their area). The consortia is likely to be made up of Local Enterprise Partnerships (LEPs), local authorities/city councils, the local creative industry, universities and colleges, national funding agencies who will collectively provide match funding for the business case and be proactive members of a collaborative process. The consortium needs to demonstrate firm links to, among others, the key strategic bodies in the region which drive policy, existing firms in the private sector (e.g. production companies, studios, broadcasters), trade associations and local universities. Each group needs to identify a lead existing UK based organisation to co-ordinate and prepare the application and, if successful, to enter into any funding agreement with the BFI and receive the award. As a demonstration of the intent in the region to develop its existing creative cluster, eligibility is limited to clusters that can demonstrate match cash funding for the business case costs (on a 50/50 basis) with the funding requested from BFI. In-kind support will not count towards such match amount. This Fund is aimed at providing the means to support the growth of emerging clusters, it is not aimed at organisations aspiring to create new clusters in order to address gaps in film activity across the UK. Such applications will not be eligible. How to apply All applicants must complete the application form available on the BFI website at The application will comprise an outline Business Plan containing at a minimum the information set out below: An outline of the business case to be developed to include budget, project plan and timeline/milestones setting out how you will prepare the business case. This outline should also seek to demonstrate how your cluster meets the assessment criteria; List of participants involved in the cluster including what they do, the level of engagement in the cluster, and the proposed level of involvement in the business case; From this, list of parties contributing actively to the cluster including providing match funding for the business case; Written confirmation that the match funding has been secured from within the cluster; Greater details of the current scope of the creative cluster. This application will need to be submitted to BFI no later than 18 September Please send your completed application to CLUSTERFUND@bfi.org.uk If you have problems completing or submitting the application please the same address. 4
5 What happens next? Applications submitted online will be acknowledged automatically. On receipt of the application BFI will assess the eligibility of the application (taking account of the requirements set out in Who Can Apply above) and may request submission of further written material as evidence of eligibility. Where an application is ineligible the applicant will be notified in writing. Assessment Criteria All applications will be assessed by a BFI panel to include BFI executives and external assessors. Assessment will take into account the following criteria: the strategic opportunities to drive significant increase in productivity and job creation with the benefits of economies of scale quality of local leadership, desire to grow the local screen industries and strength of relationship with Westminster and/or relevant devolved administration, and the LEPs (in England) and similar relevant organisations in the other Nations the availability of existing well-developed infrastructure for studio production and postproduction, and a well-established and growing base of production companies engaged in film and/or television and/or games strong public sector support from local/regional agency for screen industries and for cultural organisations engaged in the screen industries strong base of creative and technical talent and a clear commitment to expand this talent base working in partnership with Creative Skillset and aligning local developments with industrial UK wide initiatives- eg Trainee Finder ability to add to existing support with money from the private sector (support for industry skill levies) and from public sources (local, national, UK-wide and European Union) access to a superfast broadband network good road and rail links to the rest of the UK, particularly London and within easy reach of airport with international connections strong local universities and FE colleges with specialisms in relevant disciplines (e.g. creative and digital industries)that have or are working towards the Creative Skillset tick affordable housing capacity to deliver spillover benefits to other parts of a regional or local economy e.g. the service sector an ability to generate productive connections across the UK and globally. The BFI may request additional information and/or undertake a due diligence assessment of the applicant. We may also request an interview between the applicants and the assessment panel (which we would hope to hold locally to the applicant). The BFI s internal Lottery Finance Committee will take the decision as to which applications it wishes to support. 5
6 The decision of the BFI as to whether it wishes to support the application is final. Not all applications will be successful. All applicants will be informed in writing of the decision on their application. The BFI reserves the right to make no award if no application is considered sufficiently viable. Offer of funding If an application is successful the applicant will be sent an Offer of Funding setting out the terms and conditions attaching to the award. This Offer of Funding must be counter-signed and returned to the BFI within 21 days of issue or it will automatically lapse. The terms and conditions of funding will include the following: Use of the award The award can only be used towards the costs associated with preparing the business case. Partnership funding The provision of BFI funding will be conditional upon the award recipient having secured match funding (in cash not in kind) for the costs of the business case. BFI funding will be advanced alongside such match funding. BFI requirements The BFI will require a copy of the business case in both a confidential form and a publishable form (redacting any confidential information). Procurement Where the BFI funding is to be allocated towards procurement of services, the successful applicant must ensure that competitive tendering is applied in compliance with EU procurement rules. Payment of the award The award will be cashflowed in instalments against a timeline for delivery of the business case as prepared by the successful applicant. Funding will be cashflowed alongside the match funding and final payment will be subject to receipt and approval by BFI of the business case. Other conditions The Offer of Funding may be terminated and any funding already advanced may be required to be repaid in the event that any of the requirements set out in these guidelines are breached. 6
7 Important information 1. The information in these guidelines can change. The law and Government regulations on distributing National Lottery funds may also change. The BFI therefore reserves the right to review this programme and/or change its policies, procedures and assessment criteria. 2. The application form does not necessarily cover all the information the British Film Institute uses to decide which applications to fund. The BFI can ask applicants for extra information. 3. All applications are made at the applicant s own risk. The BFI will not be liable for loss, damage or costs arising directly or indirectly from: the application process; the BFI s decision not to provide an award to an applicant; or dealing with the application. 4. The BFI s decisions on applications are final. 5. As this is a Lottery award it is outside the scope of vat so the budget should be constructed on the relevant basis by the applicant organisation. 6. The BFI will not pay the award until it has received a fully executed copy of the Offer of Funding. 7. The BFI will publicise information on the number of applications it receives and the awards made. 8. The Freedom of Information Act 2000 gives members of the public the right to request certain information held by the BFI. This includes information held in relation to applications to the BFI s Lottery funding programmes or schemes. Therefore if you choose to apply to the BFI you should be aware that the information you supply, either in whole or in part, may be disclosed under the Freedom of Information Act. 9. Sometimes the BFI s Governors or members of staff may be involved in some way with applicants. This interest has to be declared in applications from such applicants. The relevant Governor or staff member will not be involved in assessing the application or the decision to make an award. Applicants are advised not to try to influence the success of their application by approaching a Governor or staff member. 10. It is important that applicants carefully check the information given in the application form. The BFI s standard terms and conditions entitle it to withhold or reclaim an award in the following circumstances: If the application was filled in dishonestly or with incorrect or misleading information about the organisation or the project whether deliberately or accidentally; and If during the term of the agreement the awardee acts dishonestly or negligently to the disadvantage of the project. The British Film Institute will follow up cases of suspected fraud and will pass information to the police. 11. Complaints and appeals: The BFI s decision is final. Inevitably, applicants will have to be turned down and may be disappointed by this result. Formal appeals against the final decision will not be considered unless the applicant has good cause to believe that the procedures for processing the applications were not adhered to, or applied in such a way as to prejudice the outcome of the application. A copy of the BFI s Complaints procedure can be downloaded from the website or obtained on request from the BFI s Communications department. 7
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