Agenda item

AGREED      that Cabinet:

1.             note the contents of this report and agrees to pause the Ollerton and Clipstone Scheme after completion of RIBA2 design due to ongoing delays with the issue of funding from Government and endorse that the Chief Executive or/and the Deputy Chief Executive/Director - Resources write to Government expressing deep concerns and disappointment at the delays and seeking the following:

That Government:

a)        Confirms to the Council, that given the delays since the original LUF submission in summer 2022 and the delays since the LUF 3 announcement in November 2023, an agreed extension to the requirements to defray all LUF3 funding by 31 March 2026 to 31 March 2027;

b)        Executes the Memorandum of Understanding (MoU) before 31 July 2024 to allow immediate access to any needed funds from the LUF 3 grant, allowing the project to continue to be developed at pace; or

c)         Release advance funding of £821,000 before 31 July 2024, to be deducted from the overall LUF3 grant allocation to allow the project to continue to be developed at pace.

2.             that subject to Government releasing the advance funding of £821,000 as detailed at Recommendation 1c) above that Cabinet approves the addition of £821,000 to the Capital Programme. For the avoidance of doubt if the Government executes the MoU as detailed at recommendation 1b) above the full amount of Levelling Up Fund 3 grant will be transferred into the Capital Program in accordance with the June Cabinet resolutions.

The Director of Planning and Growth was in attendance to present a report updating the Cabinet on the ongoing delay in receiving the Levelling Up Fund 3 (LUF 3) grant from Government and to seek agreement to pause further work on the project until the Council receives a response from Government. Officers were ready to continue work on the project once the funding position was clear.  The Cabinet considered the report and the impact on workload and staffing for Officers.

AGREED (unanimously) That Cabinet:

1.      note the contents of this report and agrees to pause the Ollerton and Clipstone Scheme after completion of RIBA2 design due to ongoing delays with the issue of funding from Government and endorse that the Chief Executive or/and the Deputy Chief Executive/Director of Resources write to Government expressing deep concerns and disappointment at the delays and seeking the following:

That Government:

a)      Confirms to the Council, that given the delays since the original LUF submission in summer 2022 and the delays since the LUF 3 announcement in November 2023, an agreed extension to the requirements to defray all LUF3 funding by 31 March 2026 to 31 March 2027;

b)      Executes the Memorandum of Understanding (MoU) before the 31^st July 2024 to allow immediate access to any needed funds from the LUF 3 grant, allowing the project to continue to be developed at pace; or

c)      Release advance funding of £821,000 before 31^st July 2024, to be deducted from the overall LUF3 grant allocation to allow the project to continue to be developed at pace.

2.      That subject to Government releasing the advance funding of £821,000 as detailed at Recommendation 1c) above that Cabinet approves the addition of £821,000 to the Capital Programme. For the avoidance of doubt if the Government executes the MoU as detailed at recommendation 1b) above the full amount of Levelling Up Fund 3 grant will be transferred into the Capital Program in accordance with the June Cabinet resolutions.

Reasons for Decision:

The recommended approach, if actioned by Government, will enable delivery of the projects to continue in the absence of an executed MoU and release of funds from Government.

Options considered:

Withdraw delivery of the Ollerton and Clipstone Levelling-up projects. This option is discounted as the scheme remains a priority for the Council.

Carry on with the scheme at risk. Meeting the deadline for mandated defrayal of the full grant by 31 March 2026, is extremely challenging particularly since the Council has not yet received the MOU from government. The Council has already funded £541,000 with a further £40,000 made available in June 2024 from UKSPF (for both Ollerton and Clipstone projects). To continue to fund architectural and design works to RIBA stage 3 for Ollerton would further expose the Council to an additional £700,000. This level of exposure, when particularly considered together with the present uncertainty of funding support from Nottinghamshire County Council and the outcome of the bid for the Brown Field Land Release Fund is not considered acceptable.