Issue - meetings

AGRED that Cabinet:

a)      note the report, including the updates associated with the LUF 3 Programme;

Ollerton Project

b)      approves a capital budget of £500,000, financed initially by borrowing, to be replaced by the LUF 3 grant when received, to enable essential project development works associated with the Ollerton scheme, prior to the Council receiving a Memorandum of Understanding, as detailed in section 1.6 of the report;

Clipstone Project

c)      approves a capital budget of £200,000, financed by borrowing initially, to be replaced by LUF 3 grant when received, to enable essential project development associated with the Clipstone scheme (Phases 2 and 3), prior to the Council receiving a Memorandum of Understanding, as detailed in section 1.9 of the report;

Memorandum of Understanding (MoU)

d)      approves an amendment to the existing delegation to the S151 Officer, Deputy Chief Executive & Director of Resources and Director of Planning and Growth, to include the acceptance of apartial (or full), LUF 3 grant of up to £20m, via an MoU, as detailed in sections 1.12 and 1.13 of the report; and

e)      notes the existing and proposed financial commitments immediately eligible for repayment by MHCLG, subject to a finalised partial, or full MoU, as detailed in section 1.13 of the report.

The Director – Planning & Growth resented an update report in respect of the Levelling Up Fund (LUF) 3 Programme. The update report published after the initial agenda, reflected the further discussions that had been held with the Ministry of Housing, Communities and Local Government to agree in principle the draw down of a deliverable portion of the LUF 3 grant in advance of confirmation of an extension beyond March 2025, and proposed wider recommendations.

The update report presented key recommendations to enable the ongoing delivery of the Ollerton and Clipstone regeneration projects, as well as giving a wider update on the programme. It was noted that a further report may be required at a future meeting, dependent on the finalisation of the Memorandum of Understanding with the Ministry of Housing, Communities and Local Government.

AGREED     (unanimously) that Cabinet:

a)           note the report, including the updates associated with the LUF 3 Programme;

Ollerton Project

b)          approves a capital budget of £500,000, financed initially by borrowing, to be replaced by the LUF 3 grant when received, to enable essential project development works associated with the Ollerton scheme, prior to the Council receiving a Memorandum of Understanding, as detailed in section 1.6 of the report;

Clipstone Project

c)           approves a capital budget of £200,000, financed by borrowing initially, to be replaced by LUF 3 grant when received, to enable essential project development associated with the Clipstone scheme (Phases 2 and 3), prior to the Council receiving a Memorandum of Understanding, as detailed in section 1.9 of the report;

Memorandum of Understanding (MoU)

d)          approves an amendment to the existing delegation to the S151 Officer, Deputy Chief Executive & Director of Resources and Director of Planning and Growth, to include the acceptance of apartial (or full), LUF 3 grant of up to £20m, via an MoU, as detailed in sections 1.12 and 1.13 of the report; and

e)           notes the existing and proposed financial commitments immediately eligible for repayment by MHCLG, subject to a finalised partial, or full MoU, as detailed in section 1.13 of the report.

Reasons for Decision:

To ensure Members are aware of the recent updates and developments associated with the LUF 3 programme, and to enable ongoing progression of both schemes for delivery within potential Government timescales. Without access to further funding, there is an elevated risk that both projects are unable to meet spend timescales detailed within this report.

It is recommended that the Council enters into an initial MoU with MHCLG at the earliest opportunity, to enable existing upfront investment to be eligible for repayment from LUF 3 Grant, in turn reducing the level of financial exposure for the Council.

Options Considered:

It remains an option for the Council to refuse to accept any future LUF 3 grant or decide not to provide further forward funding. This approach is not recommended as it would represent a missed opportunity to deliver genuine and impactful transformative change in the communities of Ollerton and Clipstone. Without additional forward funding, risk is  ...  view the full minutes text for item 218