Decision details

KCC, on behalf of Thames Gateway Kent Partnership, has applied for Government funds to deliver the TIGER (Thames Gateway Innovation, Growth and Enterprise) programme, offering direct financial support to business in North Kent and Thurrock.

The Government is currently considering KCC’s application for funding. If it decides to grant funding, KCC will need to enter into a grant agreement with the Government to accept the funds and deliver the programme. This will mean that KCC will be contractually committed to meet a number of output targets (relating to jobs and leverage) associated with the programme.

How the decision relates to BS4K and Corporate Objectives

This Decision contributes to delivery of the following Delivering Bold Steps priorities:

·         Priority 7: Build a strong relationship with key sectors across Kent.

·         Priority 8: Respond to key regeneration challenges, working with our partners. This priority makes specific reference to support for economic growth in the Thames Gateway.

Impact/costs and risks of proposed decision

The proposed decision will mean that KCC will be able to draw down funding from Government. This could have a potential value of up to £30.5 million in Government funding. This will enable the Council to provide direct financial assistance to business. It is anticipated that this will lead to the creation of 2,400 jobs, and secure over £400 million in private sector leverage.

Costs

There will be a cost to KCC in managing the programme, should KCC decide to act as the accountable body. This is estimated at a maximum of £800,000 over the next 3.5 years. Funding for this has been indicatively allocated through the KCC Regeneration Fund.

Risks

The following risks will be incurred by KCC as a result of the proposed Decision:

·         Failure to secure contracted outputs, leading to clawback of funding. This will be mitigated through full appraisal of all grants and loans to individual companies and ongoing monitoring.

·         Failure to comply with state aid and other legal requirements, leading to clawback of funding and reputational damage. This will be mitigated through full appraisal of all grants and loans to individual companies and ongoing monitoring.

·         Inability to spend funds. This will be mitigated through strong marketing and coordination with the North Kent Districts and other partners.