Issue - items at meetings - Covid-19: Support for Businesses

Report of the Executive Director for Economy, Environment & Culture.

1)             That members note the work being undertaken to deliver business rates relief and business grants to local businesses.

2)             Agree the rationale and process for administering the discretionary grants for business, and delegate the agreement of the detail of the application and assessment process to the Executive Director Economy, Environment and Culture, and acting Chief Finance Officer

3)             Delegate final approval to make grant awards to the Executive Director Economy, Environment and Culture, in consultation with a professional panel to include representatives of business groups who helped to prepare the Economic Strategy

4)             Agree to underwrite income to the Brilliant Brighton Business Improvement District (BID) for 2020/2021, up to a maximum of £350,000.

5)             Agree to waive the business membership fees for Visit Brighton for 2020/2021 for six months to a maximum cost of £100,000.

6)             Allocate £15,000 from the 2020/2021 Economic Development Budget to cover the operating costs of the Brighton and Hove Economic Partnership.

6.1          The Sub-Committee considered a report of the Executive Director, Economy, Environment & Culture that set out the programme of business support work being undertaken by the Economy and Events Cell, which has been set up to respond the Covid-19 Crisis.  The report also proposed a package of support measures from the city council to help businesses.

6.2          Councillor Miller stated that he had received an unprecedented level of correspondence on the matter from residents and businesses in the city and the support provided by Government should be welcomed. Councillor Miller expressed his concern for the events and tourism sectors and an innovative approach would be needed to help those industries recover. With reference to paragraph 3.9, Councillor Miller stated that it would be difficult and time-consuming to qualify that a business was not in financial difficulty before 2019 and could be open to subjectivity. With regard to recommendation 2.3, Councillor Miller questioned whether there should be Member input into grant awarding Panel.

6.3          Councillor Mac Cafferty observed that the digital and IT sector appeared omitted from the table beneath paragraph 3.15.  Councillor Mac Cafferty highlighted the key issue of those that were self-employed and freelance and asked whether there should be a local focus on this area given the uncertainty regarding ongoing support for those groups from central government. Councillor Mac Cafferty stated that rapid learning was required given the ongoing uncertainty relating the pandemic and how it would develop.

6.4          In response to the questions raised, the Assistant Director, City Development & Regeneration explained that government guidance set out what was defined as a business in difficulty and was a definition set out to ensure that businesses directly affected by Covid-19 were supported and not those that were failing before March. The Assistant Director, City Development & Regeneration clarified that the grant awarding panel would have to make rapid decisions and adding a further tier of decision making would make that difficult. The Assistant Director, City Development & Regeneration explained that the table at paragraph 3.15 set out some of the priority areas and the digital and IT sectors would certainly be able to apply.

6.5          Councillor Gibson welcomed the report and asked whether those paying the Brighton & Hove Living Wage could be prioritised and asked about the possibility of further funding from central government.

6.6          The Assistant Director, City Development & Regeneration clarified that the draft criteria did include scoring priority for those employers paying the Brighton & Hove Living Wage. The Assistant Director, City Development & Regeneration added that officers were continuing to lobby central government for both further funding and further powers to use the existing funding in a more discretionary way.

6.7          Councillor Yates stated his support priority scoring for those employers paying the Brighton & Hove Living Wage as they had demonstrated their support for the city and its residents in signing up to the scheme. Councillor Yates stated that it was fortunate that the Economic Strategy had recently been finalised as it would give a good basis to prepare and develop a post-Covid economic recovery. Councillor Yates proposed a cross-party letter to central government requesting greater flexibility to spend the funding awarded and requesting further funding to support businesses in the city.

6.8          The Sub-Committee members unanimously agreed to send a letter as proposed by Councillor Yates. At the suggestion of the Chair, it was agreed to ask the city’s MP’s and businesses to endorse that letter.

6.9          Councillor Mac Cafferty asked if more information could be provided on financial support being provided to Visit Brighton.

6.10      The Assistant Director, City Development & Regeneration explained that the businesses that were members of Visit Brighton would be given a payment holiday on their membership fees.

6.11      RESOLVED-  

1)             That members note the work being undertaken to deliver business rates relief and business grants to local businesses.

2)             Agree the rationale and process for administering the discretionary grants for business, and delegate the agreement of the detail of the application and assessment process to the Executive Director Economy, Environment and Culture, and acting Chief Finance Officer

3)             Delegate final approval to make grant awards to the Executive Director Economy, Environment and Culture, in consultation with a professional panel to include representatives of business groups who helped to prepare the Economic Strategy

4)             Agree to underwrite income to the Brilliant Brighton Business Improvement District (BID) for 2020/2021, up to a maximum of £350,000.

5)             Agree to waive the business membership fees for Visit Brighton for 2020/2021 for six months to a maximum cost of £100,000.

6)             Allocate £15,000 from the 2020/2021 Economic Development Budget to cover the operating costs of the Brighton and Hove Economic Partnership.