Minutes:
Consideration was given to a report that was submitted for pre-decision scrutiny ahead of the Cabinet meeting scheduled for 10 December 2020 in respect of a report on the Additional Restrictions Grant (ARG) – Rotherham MBC Discretionary Business Support Scheme. The Leader of the Council, the Cabinet Member for Finance and Corporate Services, the Strategic Director for Finance and Customer Services and the Head of Corporate Finance attended the meeting to present the report.
The Chair advised that due to the need for the Cabinet to make a decision on the report as soon as possible, that in accordance with the procedures set out in the Council’s Constitution that he, as Chair of the Overview and Scrutiny Management Board had given his permission that the decision could be taken using the “Special Urgency” procedures as it was not practicable for 28 days’ notice of the intention to take the decision to be given.
The Chair also advised that due to the urgency of the decision, that in accordance with the procedures set out in the Council’s Constitution surrounding call-in, that he as the Chair of the Overview and Scrutiny Management Board, in consultation with Councillor Cowles, as Leader of the Opposition had agreed that the decision should be exempt from the Council’s call-in processes.
The report stated that the Government had provided a further package of support grants for businesses that had been impacted by the Tier 2 and 3 restrictions, or that had been forced to close as part of the Tier 3 restrictions and national lockdown. The Local Restrictions Support Grants (LRSG’s) that had been established had been administered by local authorities and followed government guidance, had been targeted at businesses registered for business rates, with grant payments being available of up to £3,000 per four-week period.
On 24 October South Yorkshire entered into the Tier 3 (very high risk) level as part of the response to the Covid-19 pandemic and rising case numbers in the area. As part of the agreement with the Government to enter Tier 3, the Sheffield City Region Combined Authority (SCRCA) had negotiated a business support package of £30million, known as the Additional Restrictions Grant (ARG). It was noted that this new grant was a discretionary fund that SCRCA could then use to create a package of support for businesses that had been unable to access the Government’s LRSG’s, either because they had not been registered for business rates or were not defined as being in one of the business sectors that had been designated as being able to access the grants.
The report outlined the progress made on delivering the Governments LRSG’s as well as how the ARG discretionary fund would be used to complement those grants and support wider businesses in Rotherham. The report also sought approval for the Council’s proposed use of the SCRCA discretionary business support fund, for which Rotherham had been allocated £664,000, and for the proposed eligibility criteria.
In introducing the report, the Leader noted that the focus of the new ARG scheme would be for the many small and micro businesses that had been financially impacted by the pandemic, but that had not been able to apply for support previously. The Leader advised that the application process would a straightforward procedure for applicants where they would need to provide evidence that they had been financially impacted, either directly, or indirectly due to the restrictions imposed in response to the pandemic.
The Head of Corporate Finance advised that all applications for support would continue to be submitted through a single application form, and that officers would then assess to see which support schemes the applicant was entitled to benefit from. It was noted that the scheme would be promoted on the Council website, via social media and press releases inviting businesses to submit an application using the Council’s business support application form.
The officer’s report provided information on the three phases of the ARG scheme and the support that each phase would provide.
The Strategic Director for Finance and Customer Services advised that it was proposed that applications for support would be accepted until 31 January 2021, but that as the funds available for support were not limitless, and that as there was uncertainty about the number of requests for support that could be submitted, that applications would be processed on a first come first served basis until the fund had been exhausted. It was noted that if any funds were still available at the end of this period it was proposed that the Strategic Director for Finance and Customer Services, in consultation with the Leader and Cabinet Member for Finance and Corporate Services, be delegated authority to process top up payments in order to fully utilise the resources available.
Members welcomed the support that the ARG would provide to the many small and micro businesses who had not been able to claim any financial support previously.
The Chair asked for assurances that there were sufficient safeguards in place to prevent fraudulent claims for support being made. The Head of Corporate Finance advised that robust checks had been in place when dealing will all applications for support during the pandemic and advised that checks would be made on bank statements submitted as well as checks being as social media activity in order to verify business activity.
Members noted that a balance needed to be struck between protecting against fraudulent claims and enabling a straightforward application process to be implemented that ensured claims for support were processed in a timely manner. Members noted that an efficient process was needed so as to ensure that the support reached those businesses that had been facing significant financial challenges during the pandemic as quickly as possible.
The Leader concluded the discussion in encouraging any business in the Borough that was unsure if they were entitled to support to make a claim using the single application form process so as to ensure they received any support that they were entitled to.
The Chair thanked the Leader of the Council, the Cabinet Member for Finance and Corporate Services, the Strategic Director for Finance and Customer Services and the Head of Corporate Finance for attending the meeting and answering members’ questions.
Resolved: -
1. That Cabinet be advised that the recommendations be supported.
2. That consideration be given to the creation of a single point of contact in order to enable all residents that are eligible for support to be able access that support easily.
3. That all members be kept updated and informed on how they can support the Council’s efforts to ensure that all residents eligible for support are able to access that support.