Decision details

To seek Cabinet approval for the proposed use of the retained element of a capital grant received from the Department for Communities and Local Government (DCLG) in 2014.

To approve the use of the £1,984,868 BFG underspend as a loan facility which complies with State Aid regulations.

To recommend Option 2 in paragraph 4.2 for the use of the revenue generated is followed as a budget proposal in the next budget round.

Given the restrictions on the use of the capital grant underspend its use as a loan facility is considered to be the best option in the first instance given that it provides a means of generating a revenue stream that would then be able to provide the resource to administer a small grant scheme at a later date without being an additional drain on HDC resource.

Whilst there may be no legal restrictions on how the income generated is used, it is considered right that the use of the money should continue to observe the principle of support for economic development, and the EZ in particular.

1. All of the revenue stream should be used towards the objective for which the grant was originally allocated, namely to support of delivery of ‘growth priorities for the EZ’.

3. None of the income is used to support either the EZ or economic growth priorities but instead considered as a general receipt into Council funds.

As detailed in the report.