Decision ref
0012 2025/26
Decision date
18/06/2025
Portfolio
Regeneration
Wards
Town Centre
Title
Health Innovation Hub Grant Funding Agreement
Summary
Decision to approve The Health Innovation Hub Grant Funding Agreement between St Helens Borough Council and Mersey and West Lancashire Teaching Hospital NHS Trust (MWLHT). The Recipient has submitted a request for funding of £903,632 to continue with The Health Innovation Hub project. The Funder considers that this project falls within the objectives of its Town Deal Project.
Purpose
To approve the Health Innovation Hub Grant Funding Agreement between St Helens Borough Council and Mersey and West Lancashire Teaching Hospital NHS Trust (MWLHT). The Town Deal grant funding award of £903,632 to the Mersey & West Lancashire Teaching Hospitals NHS Trust will enable the procurement of refurbishment works to create a Skills Academy premises within 4-6 Hardshaw Street via the Grant Funding Agreement.
Background
The Ministry of Housing, Communities and Local Government have agreed in principle that funding will be made available for projects within the scope of the Towns Fund as set out in a Memorandum of Understanding signed by the Chair of the Town Deal Board and the Funder. The Funder is the Accountable Body in respect of the funding made available under the Towns Fund. The Recipient has submitted a request for funding of £903,632 to continue with The Health Innovation Hub project. The Funder considers that this project falls within the objectives of its Town Deal Project. This Agreement sets out the terms and conditions on which the Grant Funding is made available by the Funder to the Recipient. These terms and conditions are intended to ensure that the Grant Funding is used for the purpose for which it is awarded.
The Project Deliverables under this agreement are:
• To cultivate a sustainable ‘home-grown’ health and social care workforce to meet the demands of the sector in St Helens;
• To make St Helens town a known contributor of innovative approaches to finding solutions within the Health and Social Care sector;
• To stimulate economic growth and increased prosperity through growing our healthcare business sector, including via community wealth building activity;
• Ensure that the strategic objectives of the emerging St Helens Inclusive Growth Strategy are fulfilled by aligning skills capacity and stimulating the healthcare business sector;
• Position St Helens regionally and nationally as a centre for inward investment, business growth and innovation in H&SC.
Conclusion
The overarching vision for the Health Innovation Hub is to cultivate a sustainable ‘home-grown’ health and social care workforce to meet the demands of the sector in St Helens; to make St Helens town a known contributor of innovative approaches to finding solutions within the Health and Social Care sector; and to stimulate economic growth and increased prosperity through growing our healthcare business sector, including via community wealth building activity.
The proposals for the Health Innovation Hub Skills Academy involve the purchase and refurbishment of the Clickworks premises on Hardshaw Street within the town centre to create a new high quality training facility, acting as a prominent focus for health and care sector careers and skills development in St Helens. The Skills Academy project will continue to be progressed as one of the strands of the wider Health Innovation Hub project.
The Skills Academy will provide a dedicated space, in St Helens Town Centre which will deliver a range of products and resources in order to:
• Change the perception of a career in health and care;
• Make employment opportunities more accessible with simpler processes and a ‘work ready offer’ for those that need it;
• Employ more local people in care, developing a continuing pipeline of talent, which will be mutually beneficial for the sector and the local economy;
• Create a career path to enhance skills of local people to increase incomes and social value;
• Retain and retrain people in health and care through upskilling, advancement and well-being support.
The facility will be managed by Mersey and West Lancashire Teaching Hospital NHS Trust (MWLHT) and St Helens Council, working collaboratively under St Helens Cares – the Integrated Care Board. Partners are working collaboratively with wider stakeholders to design and deliver the proposals for the scheme in support of the identified project goals.
The project is seeking Towns Fund capital grant funding of £903,632.
The revenue funding allocation of £325,000 from the St Helens ICB is committed and funding is available to bridge an operating deficit in the first two years of operation.
ICB/MWLHT NHS Trust has in principle approval for the project and will be seeking formal approval for costs associated with resourcing the operation of the facility based on the proposed business plan.
The capital cost of the site purchase is based on the price paid by St Helens Council for the freehold. St Helens Council will retain the building, which ICB/MWLHT will occupier on a leasehold or license basis to deliver the Skills Academy refurbishment works and operate the facility. Under this arrangement, St Helens will retain the building as an asset and act as landlord to ICB/MWLHT.
Capital cost estimates for the works have been commissioned by ICB/MWLHT. This advice has been provided by Hive in their capacity as the appointed cost consultants for the project. A summary of the current interim cost estimate is outlined in Figure 4.1 below. It should be noted that this is a cost estimate, pending further design development that is dependent on the release of Towns Fund grant support. As outlined, the cost plan is showing a cost of £1.04m (inclusive of VAT) against a budget of £0.9m. The project team will continue to explore opportunities for cost efficiencies in progressing the next stage of the design.
This Agreement (together with all documents attached to or referred to within it) constitutes the entire agreement and understanding between the parties in relation to the Grant Funding and supersedes any previous agreement or understanding between them in relation to such subject matter.
Risk Implications
Key risks associated with the delivery and ongoing operation of the facility have been identified within the Project Inception Document and Business Plan. A number of these risks have financial implications that will need to be managed to ensure successful project delivery. Key risks are outlined below, and relevant mitigation arrangements are set out in the risk register.
Grant funding – the scheme becomes unaffordable and Towns Fund grant is not approved or allocated.
Procurement – the cost of the works as per the specification is not affordable within the project budget.
Cost increases – increases in costs arising from design variations make the project unaffordable within the capital works budget.
External factors – changes in costs arise due to external pressures resulting in inflationary pressures, including the impact of contractor failure.
Demand – potential for demand to be lower than currently projected, resulting in an operational deficit.
Controls are established to deliver an effective reporting system, risk management, financial management and change control during the course of the scheme.
The Project Risk Register is owned and updated at regular intervals by the Project Manager. The current Risk Register is included in the Business Plan for the scheme. Risks have been assessed on the basis of likelihood and potential impact. Risks are also reported to the Town Deal Board on a frequent basis through the established programme reporting mechanisms.
All risks for the delivery phase of this scheme will be owned by the party best able to manage the risk and overseen by the Health and Care Innovation Hub Steering Group. The risk register will continue to be reviewed throughout the scheme’s development and delivery phases to remove, reduce and mitigate risks where possible. Reporting of significant risks is managed though the scheme’s reporting structure and will remain a standing agenda item.
Measures to Redress Risk
The risk and contingency element of the grant totalling £78,865 will be subject to an additional review, and request to utilise if this provision is required. The assurance process includes all funding released, and any items that are assessed as not appropriate to the project may be requested to be paid back to the Council. Along with its first quarterly financial report, the Recipient shall provide the Funder with a risk register and insurance review.
The Funder’s liability under this Agreement is limited to payment of the Grant. The Recipient remains entirely responsible for its risks and liabilities in delivering the Project and the Funder accepts no liability for any consequences, whether direct or indirect, that may arise from the Recipient delivering the Project, the Recipient’s use of the Grant or any reduction, withdrawal or repayment of the Grant.
The Recipient shall indemnify and hold harmless the Funder, its employees, agents, officers or sub-contractors with respect to all claims, demands, actions, costs, expenses, losses, damages and all other liabilities arising from or incurred by reason of the actions and/or omissions of the Recipient in relation to the Project or the Recipient’s use of the Grant, the non- fulfilment of obligations of the Recipient under this Agreement or its obligations to third parties. The Recipient shall hold sufficient insurance to cover its potential liabilities under this clause 18 and shall provide evidence of such insurance to the Funder on request
Nothing in this Agreement shall exclude or limit either party’s liability for death or personal injury caused by its negligence or any other liability which cannot be limited or excluded by law.
The Recipient shall effect and maintain with a reputable insurance company a policy or policies in respect of all risks which may be incurred by the Recipient, arising out of the Recipient 's performance of the Agreement, including death or personal injury, loss of or damage to property or any other loss.
Payments detailed in the Grant Funding Agreement are to be made in accordance with the following conditions:
Conditional on property responsibility confirmation- Asset Transfer to MWLHT,Full Repairing Lease to be in place, or agreed licence in place to be able to complete the works.
Evidence of a compliant procurement process for the works contract
To be claimed following expenditure in this period. Evidence of invoices and bank defrayal required.
Declarations Of Interest
None
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More information
Please contact Stephen Higham on 01744676789
