RESOLVED:
1. That the content of the report be noted and that the proposed mechanism for the allocation of the Business Support element of the Rural England Prosperity Fund be agreed.
2. That it be agreed that an Investment Plan be prepared for Cabinet approval to allocate the Community Infrastructure Improvements.
REASONS FOR DECISION:
As set out in the report.
KEY DECISION:
Yes
PORTFOLIO:
Business, High Streets and Tourism
ALTERNATIVE OPTIONS CONSIDERED/REJECTED:
As set out in the report.
DECLARATIONS OF INTEREST:
None
DISCUSSION:
The Portfolio Holder introduced the report and welcomed the Rural Fund of in excess of £500,000 DEFRA funding to be allocated in the District. Following the launch of the scheme, the Council’s Economic Development Team would invite and encourage local businesses to apply for a capital grant.
The Executive Head of Planning, Regeneration and Economy reported that local authorities were expected to be in receipt of the fund in the next financial year. The fund was split between business grants and supporting community infrastructure. The report highlighted there was currently insufficient evidence in relation to priorities for supporting community infrastructure, however work would be carried out with Towns and Parishes to identify opportunities which meet the criteria and could be included in an Improvement Plan.
The Deputy Team Leader for Economic Development further highlighted that 60% of the Fund would be towards business grants. This equated to £324,000 over two years. Businesses could apply for a grant between £5,000-£15,000 for small scale capital grants, for example, equipment and machinery to boost productivity and for project innovation, as well as towards net zero infrastructure and projects to diversify farm businesses away from agriculture. The application process was being developed.
A Cabinet Member spoke in support of the fund, recognising it would support rural businesses and that this would have a positive impact on the local economy.
Members of the Council also spoke in support of the Rural Fund and asked questions in relation to the conversion of agricultural buildings and contribution towards net carbon zero and nature recovery. In response, it was recognised that business grants would have no impact on the planning process. The grants would need to be spent within a short period of time and therefore if there was a need to obtain planning permission there might not be enough time to deliver the project. It was confirmed that net carbon zero and nature recovery would form part of the assessment criteria in the grant process and also be considered through the community infrastructure projects.
A member felt there should be greater clarity regarding the definition of a rural business, however it was anticipated that this would be clarified when DEFRA released the guidance on the scheme.