Agenda item

Support for Business Start Up

(Cabinet Members with Special Responsibility Councillors Archer and Bryning)

 

Report of the Head of Economic Development & Tourism.

Minutes:

(Cabinet Members with Special Responsibility Councillors Archer and Bryning)

 

The Head of Economic Development and Tourism submitted a report seeking approval for proposals for the delivery of the NWDA Business Start Up Service in Lancaster District from April 2009.

 

The options, options analysis, including risk assessment, were set out in the report as follows:

 

The following options have been identified:

 

 

Option

Advantages

Disadvantages

Risks

1. Do nothing ie no co-funding arrangement, NWDA select local deliverer

Minimal City Council staff input required as no local project management implications

Extent of service limited by NWDA allocation of funding

Limited opportunity to target local priorities

 

 

2.  City Council provides co-funding and acts as Accountable Body for project based on District footprint

Co-funding would allow enhanced service which can be extended to include local priorities

City Council selects local deliverer

Co-funding would require an additional budget growth item for business counselling activity as there is no appropriate existing budget (nb this would be additional to the budget growth request already submitted for the Rent Grant Scheme)

Any associated external audit costs would need to be met in full by the City Council

 

Usual risks associated with Accountable Body status related to managing funding, achieving outputs

3.  Enter into an agreement with Lancashire County Council who will provide co-funding and act as Accountable Body for project based on District footprint

City Council does not need to act as Accountable Body

Co-funding allows enhanced service which can be extended to include local priorities

County/City Councils select local deliverer

Allows firm link to be made with LSP/LAA targets for business start up

Funding fully committed to service delivery within the District

Any associated external audit costs would be the County Council’s responsibility

 

County Council influences priorities and deliverer selection (mitigated by  agreement between the two authorities on the co-funding arrangements)

 

 

4.  Join Mid-Lancashire grouping, with lead local authority acting as Accountable Body

City Council does not need to act as Accountable Body.  Co-funding requirement possibly met by other authorities and/or Lancashire County Council

Possible re-allocation of resources within the grouping in response to high local level of demand

 

Options in selecting local deliverer(s) potentially more restricted

Opportunities to address local priorities potentially more limited

Possible re-allocation of resources within the grouping in response to low local level of demand

It is possible that the City Council would be required to agree a risk sharing arrangement with the lead authority for the group to mitigate their financial risks as Accountable Body (eg grant clawback and audit costs).

 

As background to Option 4 it should be noted that within Lancashire it was always likely that the two Multi Area Agreement local authority groups, Pennine Lancashire and the Fylde, would propose arrangements for delivery of the Business Start Up project within their respective boundaries.  Consequently, one possible arrangement was for the remaining Mid Lancashire authorities, including Lancaster, to act as a third grouping with one of the authorities acting as Accountable Body.  This option has not been actively pursued, the preference being to establish a dedicated service for Lancaster District’s distinctive economic footprint.

 

Option 3 is the officer preferred option as this provides the optimum arrangement for a locally focused business start up service, enhanced by County Council co-funding.

 

It was moved by Councillor Bryning and seconded by Councillor Archer:-

 

“That the recommendations, as set out in the report, be approved.”

 

Members then voted as follows:-

 

Resolved unanimously:

 

 (1)     That the proposed arrangements for delivery of the NWDA Business Start Up Service in Lancaster District from April 2009 be approved with specific reference to the proposed partnership arrangement with Lancashire County Council, under which the County Council will act as Accountable Body in respect of a co-funding/co-procurement agreement with the Northwest Development Agency.

 

(2)       That the Corporate Director (Regeneration), in consultation with the Cabinet Members with joint economic/regeneration responsibilities, be authorised to finalise agreements with Lancashire County Council and the Northwest Development Agency as required for delivery of the Business Start Up Service, including the allocation of funding to priority groups and areas.

 

Officers responsible for effecting the decision:

 

Corporate Director (Regeneration)

Head of Economic Development and Tourism

 

Reasons for making the decision:

 

The decision provides the optimum arrangement for a locally focused business start up service, enhanced by County Council co-funding.

Supporting documents: