Row breaks out as City Council accused of delays over coronavirus cash for businesses
The ruling Labour administration at Nottingham City Couhncil has hit back at allegations that it is dragging its feet over issuing Government coronavirus support, branding the claims as “hugely disappointing” and “wholly innacurate”.
The Conservatives in the city have claimed that just 12% – or £7m – out of the £63m of Small Business Grants Scheme (SBGS) cash allocated to Nottingham had been issued, meaning that just 619 out of 5,170 businsses have received the money.
Andrew Rule
The leader of the Conservatives in Nottingham has accused the ruling Labour group of “leaving businesses in a queue” and giving the impression that Nottingham is “not interested in small businesses”.
Andrew Rule said: “It is hugely disappointing that Nottingham City Council has not been able to allocate more of the grant funding provided by the Conservative Government to support local businesses and it looks like over 4,500 of these businesses are just waiting in a queue somewhere. Nottingham City Council is ranking 308 of 314 councils nationwide in terms of distributing this funding.
“It gives the impression that Nottingham is not interested in business.
“In these difficult times for us all, Nottingham City Council needs to clear the current log gam and get these Government grants to businesses that so desperately need them.”
However, councillor Sam Webster, Portfolio Holder for Finance, Growth and the City Centre, dismissed the claims and said the Council is on course to get through any outstanding applications by the end of this week.
Webster told TheBusinessDesk.com: “What is hugely disappointing is seeing these figures, which are out of date and wholly inaccurate, being reported as fact. Nottingham City Council has processed well over £25 million of business support grants, over 40% of our allocation. The Council is well on track to have processed all outstanding grant applications processed by Friday.
“We have consistently said we recognise how vital the business support grants are to our local companies and to our city’s economy and character. Politicising support to businesses and pitting councils against each other is an unnecessary distraction as councils across the country rush to provide this support to our businesses – way ahead of the government’s own furlough scheme, where applications have only just started being accepted.
“I want to thank Council staff in the business rates team who have worked tirelessly around the clock and continue to do so to process thousands of grant payments. Our application rate has been much higher than many other areas which is great to see.
“We are working with local businesses and our partners including Nottingham BID, Marketing NG, the Chamber of Commerce and Creative Quarter to make sure we communicate effectively with our valued business community and ensure that all businesses who are eligible are aware of the support we can offer and are applying for their grants. I’d encourage those businesses that are eligible who haven’t yet applied to do so as soon as possible.”
The SBGS was launched by Chancellor Rishi Sunak and is backed by a £12.bn fund. Local authorities are able to offer grants of up to £25,000 to small businesses.
