Agenda item

That Cabinet:

a)         notes the updates associated with the LUF 3 Programme, including the recent execution of the Government Memorandum of Understanding (MoU), and the initial payment of LUF 3 grant to the Council, as detailed in paragraph 1.2 of the report.

Ollerton Town Centre Regeneration Scheme

b)         approves the reallocation of £450,000 of the capital budget of £500,000 approved by Cabinet on 10 December 2024, to revenue budget, as detailed in paragraph 2.5 of the report, funded by the LUF 3 grant;

c)          approves the addition of £68,000 within the Capital Programme, financed by grant, as detailed in paragraphs 1.5 and 1.6 of the report; and

d)         approves the addition of a £322,000 revenue budget, financed by grant, as detailed in paragraphs 1.5 and 1.6 of the report.

Clipstone Regeneration Scheme

e)         approves the reallocation of the capital budget of £200,000 approved by Cabinet on 10 December 2024, to revenue budget, as detailed in paragraph 2.6 of the report, funded by the LUF 3 grant; and

f)           notes the additional £40,000 revenue budget, funded by Government granted LUF 3 capacity funding, as detailed in paragraph 1.13 of the report.

The Director – Planning & Growth presented a report which provided Cabinet with an update on the Levelling Up Fund 3 (LUF 3) programme and proposed key recommendations to the Cabinet regarding the delivery of the Ollerton and Clipstone regeneration projects. Following the update report presented to the Cabinet in December 2024, officers had continued to discuss the developments associated with the ’Shaping Sherwood’s Revival Scheme’ with the government and had continued to seek the necessary extension of the LUF 3 funding period to March 2028, following a pause of the national programme in 2024, and the prolonged confirmation of the £20m grant for the local scheme.

It was reported that in January 2025, the Council and government successfully formalised the £20m LUF 3 commitment to Sherwood through a Memorandum of Understanding (MoU). The MoU provided further assurance relating to the future funding in addition to the release of an initial draw down of LUF 3 grant of £1,264,211. However, it was noted that the essential deadline extension to March 2028 remained unconfirmed by the government at the current time.

AGREED (unanimously) that Cabinet:

a)         notes the updates associated with the LUF 3 Programme, including the recent execution of the Government Memorandum of Understanding (MoU), and the initial payment of LUF 3 grant to the Council, as detailed in paragraph 1.2 of the report.

Ollerton Town Centre Regeneration Scheme

b)         approves the reallocation of £450,000 of the capital budget of £500,000 approved by Cabinet on 10 December 2024, to revenue budget, as detailed in paragraph 2.5 of the report, funded by the LUF 3 grant;

c)          approves the addition of £68,000 within the Capital Programme, financed by grant, as detailed in paragraphs 1.5 and 1.6 of the report; and

d)         approves the addition of a £322,000 revenue budget, financed by grant, as detailed in paragraphs 1.5 and 1.6 of the report.

Clipstone Regeneration Scheme

e)         approves the reallocation of the capital budget of £200,000 approved by Cabinet on 10 December 2024, to revenue budget, as detailed in paragraph 2.6 of the report, funded by the LUF 3 grant; and

f)           notes the additional £40,000 revenue budget, funded by Government granted LUF 3 capacity funding, as detailed in paragraph 1.13 of the report.

Reasons for Decision:

The recommendations within the report aim to prevent further delays of both Ollerton and Clipstone projects, supporting the scheme to meet an anticipated March 2028 LUF 3 spend deadline. Without the provision of additional funding to progress key workstreams, the ability to meet a March 2028 spend deadline is further compromised and would present a subsequent risk regarding potential loss of funding.

Options Considered:

Consideration has been given as to whether both Ollerton and Clipstone should be placed into a secondary paused status, until the outstanding risks and matters noted in this report are resolved. This approach is not recommended at this stage, as by pausing both projects again, it is unlikely that either scheme will be able to defray the LUF 3 funds by March 2028, preventing transformational change to be delivered to the Ollerton and Clipstone communities. Furthermore, the budgets requested within this report are required to finalise the outstanding matters detailed in this report, and therefore progression is not possible without additional funding.