Lincolnshire County Council pledge to spend £22 million on businesses and road repairs

The authority’s executive agreed to put aside £12 million from the reserve for local businesses facing difficulties in the Covid-19 pandemic, alongside another £200,000 for an emergency flood response scheme.

A further £10 million will also be taken from the council’s capital programme to help repair rural roads.

The £12 million business funding breaks down into:

£7m grants for business not receiving government help whatsoever — including businesses started during the pandemic and those who have taken bounce-back loans from the government

£1m for vouchers of £1,000 to help businesses get onto digital platforms — e-commerce, contactless payment and websites

£1.5m for village businesses and local initiatives — £3-25,000 grants covering 75 per cent diversification funds adapting to Covid-19/Brexit challenges

£2.5m for investment funds for rapid growth — mainly for young businesses with “great ideas” (grants between £25-75,000)

Executive member for economic development, Coun Colin Davie said there were 43,0000 small business in the county, who “are the backbone of our economy”.

He said: “They are the best of our county and they represent the opportunity of the future.

“We know that will be a high demand for the grant, and we may not be able to help everybody that makes an application, but if there was ever a time businesses in Lincolnshire needed our help, it’s now.”

At the end of January, furlough take-up was 10.7 per cent – around 35,700 people – below the national average of 12.6 per cent.

The authority has so far handed out £227 million of grant funding, but says up to 2,000 businesses have been unable to claim support.

Coun Davie’s proposals were backed by council leader Coun Martin Hill, who said: “It has been exceptionally stressful for small businesses.

“Although the government has been very generous and given huge sums of money to support businesses […] there are unfortunately still some businesses which have fallen through the cracks and we need to support them.”

He added: “It’s not just about supporting those businesses to make sure they do survive, but also that they are in a good place to actually expand and invest.”

Coun Richard Davies, executive member for highways, said the spend “sends a really powerful message that Lincolnshire County Council, with its financial reserves […] is in a position when times are very tough to candidly get the chequebook out.”

He said the £10 million for roads would go to the “core network” of roads which were the “lifeline of our communities”

He said: “I’m afraid it’s fair to say that some of our smaller rural roads, while incredibly important for connecting our more isolated rural communities, are in need of some support, and I think now’s a great opportunity.

Following the meeting of the executive, Katrina Pierce from the Federation of Small Businesses told a press conference the move was an “incredible intervention” from the county council.

She said: “It’s the first scheme of its kind in the entire country and I think this really blazes a trail, and we are going to be pushing very hard for local parties across the UK to follow suit.

“What councillors have shown here is incredible leadership, and a definite recognition of the agony and frustration that so many business owners across the country have faced since the outbreak of Covid-19 and they can clearly see that many can wait no longer. “

The budget changes, along with proposals already agreed to increase council tax by 1.99 per cent, will go before scrutiny committee before going to a vote at Full Council on Friday, February 19.

Once agreed, the grants will be offered in a staggered approach, with bosses hoping to start the first batch at noon on Tuesday, February 23, followed by the other schemes in early March.

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