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REPORT OFTHE DEVELOPMENT DIRECTOR
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TO THE CITY MAYOR
ONMONDAY 29th OCTOBER 2012
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TITLE:HIGH STREET INNOVATION FUND (HIF)
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RECOMMENDATION:
The City Mayor is requested to approve the proposal for the £100,000 High Street Innovation Fund (HIF) to be focused on the approved, prioritised, town centres and corridors, and split as follows:
- £50,000 forEccles
- £50,000 for the rest of the city.
The City Mayor is also requested to delegate final decision making regarding the specific activitiesfunded through the HIF, to the Development Director, in accordance with delegated spend thresholds.
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EXECUTIVE SUMMARY:
On 31st March 2012, the Department for Communities and Local Government (CLG) announced a £10 million funding package named the High Street Innovation Fund (HIF), to support empty properties on high streets, and those areas affected by the riots. Salford, along with another 99 local authorities, was awarded £100,000.
The HIF is a one-off revenue grant. There are no grant conditions attached to this funding and no timescales within which the funding needs to be spent. This fund offers the opportunity to test outsome new ideas/activities that will contribute to the revitalisation of our high streets.
Consideration has been given to the best use of this funding, based on the analysis of our high streets which was carried out prior to developing our Portas Pilot bid for Eccles.
The recommendation is for the HIF to be focused on the approved, prioritised, town centres and corridors, and split as follows:
- £50,000 for Eccles - to enable elements of the programme included in the Portas Pilot bid to be implemented.
- £50,000 for the rest of the city – to encourage entrepreneurial and new business activity.
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BACKGROUND DOCUMENTS:
(Available for public inspection)
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KEY DECISION:YES
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DETAILS:
1.0Background
The Portas Review, published in December 2011, put forward 28 recommendations for consideration on what central government, local authorities, businesses, and communities could do to promote the development of new models for prosperous and diverse high streets.Since publication, the Department of Communities and Local Government (CLG) have announced a number of related initiatives including:
1.1Portas Pilots- on 4th February 2012,CLG published a prospectus seekingbids for funding from partnerships - to become ‘Town Teams’ and to test some of the Portas recommendations. Two bidding rounds were held for a share of £2.5 million. Competition for funding was very high with 419 townsapplying and 27 pilot areas each being awarded up to £100,000. Salford applied for Eccles Town Centre under both rounds but was unsuccessful.
Continuing with the Town Team idea, in August 2012, Grant Shapps MP wrote to MPs of all unsuccessful Portas Pilot bid areas requesting their and their town’s commitment to become Town Team Partners and be part of the ‘Our Town First’ movement. Hazel Blears MP, with the city council’s support, submitted an application on behalf of Eccles Town Centre on 16th September 2012.This releases a grant of £10,000 and triggers support from the Association of Town Centre Management. The application required us to identify how the £10,000 would be spent and we therefore notionally earmarked the funding for events, and a small amount for building the capacity of the Town Team.
1.2High Street Innovation Fund - on 31stMarch 2012, CLG announced a £10 million funding package to support empty properties on high streets, and those areas affected by the riots. Salford, along with another 99 local authorities,was awarded £100,000. The HIF is the focus of this report.
1.3The Future High Street X-Fund– on 30th August 2012,CLGpublished the prospectus for the X-Fund. This is a £1million prize fund to be awarded to those areas that have delivered the most outstanding transformations of their town centres since May 2011. The closing date for nominations is 6thDecember 2012.
Applications will be assessed on evidence of:
- Innovation – new ideas which are helping to turn their high streets around. For example tackling empty shops, parking, accessibility, public realm, evening economy.
- Effectiveness –what their ideas are achieving,for example, increased footfall or turnover, improved employment opportunities or skills, reducing empty spaces.
Based on these criteria it is unlikely that a Salford bid would be successful i.e. given the stage we are at in turning around our town centres and that only changes made since May 2011 will be considered.
2.0 The High Street Innovation Fund
The Government’s intention with the HIF is to encourage Local Authorities to take the lead in driving forward the revitalisation of their local high streets in partnership with landlords, traders, and the local community. The fund can be used to deal with empty property issues on the high streets and any other activitiesthat encourage new enterprise and a broader offer, in order to increase the footfall and spend on the high street, but also to improve the community’s perception of the high street.
The city council has a good understanding of the issues across the city relating to high streets; as part of the work to identify the focus of our Portas bid,work was undertaken to build up a detailed picture of the city’s town, district, and neighbourhood centres.
The suggested approach for the allocation of the HIF is outlined below:
2.1Allocate £50,000to Eccles Town Centre
Eccles Town Centre has been identified as the council’s first priority in terms of revitalising our town centres. A good deal of work has already been undertaken in Eccles including the new gateway centre and refurbishment of the Carnegie Library;improvements to 36 shop fronts, green spaces, street clutter, and the exterior of the Town Hall; and new office development on the periphery of the town centre. The refurbishment of the City West tower blocks is underway. Further work is soon to get underway at Eccles Station to improve the forecourt, car park, and ticket office; to improve wayfinding around the town centre; to improve a further 9 shop fronts; and the Eccles Community Hall Organisation (ECHO) have funding in place to refurbish the ballroom at the Town Hall for community use. An Action Planto take forward the continued regeneration of the town centre is currently being developed.
A programme of activity totalling £94,000 was identified during the development of the bid for Portas Pilots, and a significant number of stakeholders including traders, community organisations and the Mall owners signed up to support the proposals, with a number indicating their willingness to get involved as Town Team members.
The proposed activity, aimed at improving the footfall in the town centre, included:
- Food based festivals and events and expanding the themed market events such as the Farmers’ market.
- The provision of leisure activities for both older and younger people to diversify what the town centre has to offer.
- Encouraging new enterprise through an ‘Aspire to Enterprise’ initiative and by promoting and assisting meanwhile uses of empty retail units.
- A focus on the heritage offer including heritage trails, festivals and craft based events.
- Co-ordinated marketing and promotion.
An allocation of £50,000from the High Street Innovation Fund to Eccles would enable elements of the programme identified in the Portas bid to be implemented.
2.2Allocate £50,000forthe Rest of the City
We are already working to revitalise our town centres and corridors through a number of initiatives including:
- Shop front improvements in Eccles, Swinton and Walkden Town Centres, and along Liverpool Road in Eccles, Irlam and Cadishead.
- Streetscene improvements in Eccles, Swinton and Walkden.
- Development of new Gateway facilities in town centres.
- Introduction of a 30 minute free parking period in city council car parks across the city.
Threeadditional measures have been identified which could enhance the existing package of improvements by encouraging entrepreneurial and new business activity. Although some initial work has been undertaken to scope these out, demand for theseis, as yet, untested. Therefore, we would not at this stage, propose to allocate specific amounts to each measure.
2.2.1 Support business rates for new enterprises
Businesses occupyingpremises with a rateable value of less than £6,000 are currently eligible for 100% rate relief until March 2013, and those occupying premises with a rateable value of £6,000 to £12,000 have relief calculated on a sliding scale reducing from 100% to 0%. The Government have yet to indicate whether this relief will be extended beyond March 2013.
Since the 1st April 2012, local authorities through the Localism Act 2012,now have the power to offer business rate discounts, and business rates have been identified by businesses as being one of the key barriers to starting up.
Working with landlords in our town centres and along shopping corridors, the HIF could provide rate support above that already provided by small business rate relief, for properties with a rateable value of between £6,000 and £12,000, and that have been vacant for at least six months.
This would be available as a financial incentive to new small businesses for a maximumsix month period to enable them to test their business ideas. In parallel to this we would expect landlords to offer their premises rent free for the equivalent period.
2.2.2 Meanwhile uses and pop/up activity
There are empty retail units within each of our four town centres and along our main shopping corridors.Enabling meanwhile and pop-up uses of empty shops could help to turn this around and assist in bringing an alternative offer to the high street and much needed additional footfall.
This would also require the support of landlords in allowing temporary rent-free usage of their property.There are a number of benefits to landlords in allowing this type of use including:
- A saving on business rates when letting to charities as they are eligible for mandatory rate relief.
- The potential to agree a partial saving on the rates by sharing the cost of the rates with a meanwhile user.
- Improving the vibrancy of a shopping area which is particularly beneficial to a landlord who owns several properties in an area.
There is currently no promotion of this type of activity across the city but we are aware of one successful meanwhile use in Eccles Town Centre, the Eccles Community Art Gallery, which occupies previously empty retail units in the Mall.
The HIF could provide financial support of up to £4,000 per venture to assist with set-up costsincluding marketing, equipment and temporary signage.
2.2.3 Training, Advice, and Support
New businesses, particularly independent retail businesses that are vulnerable in the early stages of start up, need vital business skills, advice, and support. HIF could be used to provide this support, adding value to the limited mainstream support available. New businesses could benefit from either one to one, or group support, such as that provided by the ‘Shop Doctor’ programme, which was successfully delivered in 2010 to 36 retailers in Eccles and Swinton.A further‘shop doctor’ programme might be developed using HIF, targeting new retailers intown centres and the main shopping corridors.
3.0 Conclusion
The HIF provides a limited amount of funding with which to tackle the decline of our high streets. The proposed split of funding as set out in this report would secure maximum benefit from this funding enablingpriority activity identified in the Eccles Portas bid to go ahead,and add to the package of improvements already in place to encourage new uses for empty properties in other town centres and main shopping corridors across Salford.
In order to assess the impact of these funds a common monitoring framework with outputs and outcomes, in terms of empty units occupied, increased footfall (number of extra visitors) etc, needs to be established and an evaluation built in which would allow us to report on the difference the High Street Innovation Fund has made, what has worked best and lessons learned.
4.0 Recommendation
The recommendation is for the £100,000 HIF to be focused on the approved, prioritised, town centres and corridors, and split as follows:
- £50,000 for Eccles
- £50,000 for the rest of the city.
Final decision-making regarding the specific activities funded through the HIF, should be delegated to the Development Director, in accordance with delegated spend thresholds.
KEY COUNCIL POLICIES:
Economic Development Strategy, Salford West Regeneration Framework.
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EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: The High Street innovation Fund will contribute to the retention of local shopping facilities for the benefit of all residents.
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ASSESSMENT OF RISK:Low risk
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SOURCE OF FUNDING: High Street Innovation Fund grant.
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LEGAL IMPLICATIONS Supplied byTony Hatton 0161 219 6323
Section 31 of the Local Government Act 2003 enables central government to make grant payments to local authorities towards any expenditure incurred (or to be incurred) by it. The grant may be made subject to conditions such as the use the grant will be put to and circumstances in which the grant (or part of it) must be repaid.
The High Street Innovation fund, which stems from the Mary Portas Review in late 2011 and forms part of the government’s package to revive rundown high streets, permits a one-off grant to the City Council in the sum of £100,000. No conditions are attached to the funding hence there are no ring-fencing issues or issues as to time-scales, and it is for the City Council to decide on the best use of the funding.
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FINANCIAL IMPLICATIONS Supplied by Joanne Hardman 0161 793 3156
The activity proposed above will not have an impact upon the Council’s revenue budget as all expenditure will be met by grant funding. It should be noted that this is not a ring-fenced grant so the Council could choose to use this grant to provide general support to the revenue account.
The recommended option includes budgets for specific initiatives e.g. rate assistance and meanwhile uses. The method of allocating funds across the range of initiatives should be carefully monitored to ensure that we are not over-committed as there is no mainstream budget provision for these purposes.
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OTHER DIRECTORATES CONSULTED:Community Health and Social Care (Neighbourhood Management), Customer and Support Services
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CONTACT OFFICERS:Bernie VaudreyTEL. NO.0161 793 2283
Sue FordTEL. NO.0161 793 3443
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WARD(S) TO WHICH REPORT RELATE(S): All
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