£500k business pot to be used elsewhere

Not enough companies applied

Half a million pounds of government funding earmarked to help rural businesses in North Devon but never allocated because of a lack of applications is to be spent on community projects.

North Devon Council has transferred the money into a community pot after concerns that the deadline for spending it is only six months away.

It is expected to be spent on Ilfracombe and other places which need regenerating.

The authority has had just 16 enquiries since it opened in May for the second round of the Rural England Prosperity Funding. Only around a quarter of the money from the first round has been allocated.

At the beginning of the financial year, £691,000 of the £798,000 hadn’t been handed out.

In a report for the council’s strategy and resources committee officers said it is  “very unlikely” the authority would be able to give all the money out in grants, given the low level of enquiries and applications.

The council was given a total of £1.1 million of  government funding for two strands – one for rural businesses and the other for communities.

The £293,000 for communities was split between two regeneration projects in Ilfracombe – the Lime Kiln seating and viewing platform which cost £88,000 and the the new toilets and shelter on Ilfracombe seafront which is due to be completed by March.

Councillors are allowed to transfer the budget between the strands without asking the government, and agreed to transfer £500,000 into the community pot.

North Devon Plus, a not-for-profit company that supports economic growth is working with the council on delivering the rural business grants.

The scheme is for companies with up to 50 employees with a turnover of less than £10 million. Projects can include net-zero infrastructure, business diversification, capital grant funding for new community businessed and social enterprises, supporting innovation and developing and promoting tourism.

Eleven projects were given cash last year totalling £107,000, and nine projects are expected to be progressed this year. There is still money available to rural businesses who wish to apply.

After reviewing the first year’s performance, changes were made to try and boost take-up, including increasing the upper limit to £35,000 for grants , reducing the level of match funding required to 10 per cent for grants up to £10,000 and 20 per cent for those over £10,000, and a ‘fast-track’ advice process.

Cllr Malcolm Prowse (Ind, Bratton Fleming) was surprised there had been little take up, as bureaucracy was not so bad in this scheme and the match funding businesses had to provide was low.

He added that the money was not available in Barnstaple as it was an urban centre that did not comply with the criteria, but Ilfracombe was eligible and needed help.

“We must not send this money back to government,” he said.