Published Delegated Executive Decisions

Decision ref

0108 2022/23

Decision date

17/11/2022

Portfolio

Business and Inclusive Growth

Wards

All wards

Title

To allocate match funding to St Helens Chamber to deliver the ERDF-funded Business Growth Programme

Summary

To allocate funding totalling £172,862 to St Helens Chamber to deliver the ERDF Business Growth Programme and Business Finance Programme

Purpose

The purpose of the report is to recommend the allocation of £172,862 to St Helens Chamber to deliver two key business support programmes in St Helens - the Business Growth Programme and the Business Finance Programme. The report sets out the background to this recommendation and the rationale for the investment along with the intended positive economic outcomes of the investment.

Background

The funding is required in order to enable the continuing delivery of a crucial programme of business support for local businesses. The Chamber does not have ready access to this match funding, and the Council does not have the capacity to directly deliver in this area. Therefore, the Council's strategic partnership with the Chamber allows it to invest in key interventions such as this to help grow our business base. This funding will enable at least 110 business interventions as well as create 104 FTE jobs. St Helens Chamber has succeeded in securing an extension to the Business Growth Programme, enabling continuation of the vital interventions and support for St Helens businesses to stimulate growth. The Ministry of Housing, Communities and Local Government (MHCLG) through the Liverpool City Region Integrated Business Support Programme (known as the Business Growth Programme) has awarded a continuation of the programme until 30 June 2023 and allocated additional funding totalling £259,058. In 2019, St Helens Council provided the Chamber with match grant funding of £257,000, relating to the Business Growth Programme, and £36,000 regarding Business Financial Planning respectively to assist in delivery of the programme. A Service Level Agreement (SLA) was signed and this match funding for Business Growth Programme was agreed to be sufficient to last until 30 September 2021. 157 jobs have been achieved from this intervention up to March 2022. The Business Growth Programme offers direct advice and guidance to local SMEs that is designed to build their confidence and capacity and give them a clear route to growth and sustainability. It is an ideal way for businesses to utilise expert consultancy, providing 12 hours of fully funded business consultancy in a range of business disciplines, including marketing, sales, IT, procurement & tender readiness, business planning & quality systems (e.g. ISO), productivity, health & safety, logistics, environmental performance, and financial & credit control processes. Business Financial Planning. The challenges of the pandemic have forced many businesses to focus on survival, rather than growth however, the support that we have given through the completed financial plans has been instrumental to enable them to emerge from the current restrictions with real growth potential. This part of the funding enables SMEs to prepare forward business plans and investment cases which then support their applications to their banks, investors and other financial support programmes. SMEs face a real barrier in the costs of forward planning (as compared to retrospective accounts compilation), and this programme resolves that barrier. Outcomes from this programme are set out below, representing a value for money unit rate by market standards for business support programmes: Outputs - Business Growth Programme 86 interventions 55 FTE jobs created Outputs - Business Finance Programme 24 interventions 49 FTE Jobs Created There is sufficient budget within the MTFS to cover this investment.

Conclusion

The allocation of £172,862 to St Helens Chamber to deliver the Business Growth Programme and Business Finance Programme is required to ensure the full delivery of these programmes, and represents a sound investment in local economic growth, and good value for money in terms of economic outcomes.

Risk Implications

Risk: Delivery of the programme by the Chamber is suboptimal Mitigation: - Funding Agreement (attached to the decision) will allow clawback of funds in the case of non-delivery or under-delivery of spend/outcomes. - Regular monitoring reports by the Chamber, allowing redress for spend or output delivery issues

Measures to Redress Risk

Should performance (spend and/or output achievement) be sub-optimal, redress will be sought initially via performance management of the contract, exploring alternative methods to deliver the work, or in the cases where this is no longer practical, withholding or retracting funding from the Chamber. The attached Funding Agreement supplies the Council these options for redress.

Declarations Of Interest

None

More information

Please contact Sean Traynor on 01744 676481