Agenda item

The Committee gave consideration to a report of the Director of Finance which set out the proposed Small Business Grant Fund (SBGF) and Retail Hospitality and Leisure Grant Fund (RHLGF) Prosecution Policy.  The policy supported the Council in the investigation of grant payments suspected of being inappropriate.

In response to the COVID-19 pandemic, the Government had provided funding for the Council to administer the Small Business Grant Fund (SBGF) and Retail Hospitality and Leisure Grant Fund (RHLGF) grant scheme.  The process involved both pre and post payment checks on the grant recipients.  There was an expectation that the Council, in its grant administration processes, would balance the speed of payments against a level of pre-payment checks to minimise inappropriate payments.

The Prosecution Policy was a key part of the Council’s post payment checks.  It supplemented the Counter Fraud suite of policies reported to this Committee at its meeting on 12 September 2019.  The policy supported the Council’s approach to zero tolerance to fraud and loss.

Members sought clarification on the Small Business Grant Fund and if information on businesses that had not claimed the grant could have been divided on a ward basis and if the grant was not spent what happened to the remaining funds.  Members were informed that it was not possible to provide the detailed information on a ward basis as the payment of the grants was linked to the business rates register.  This information is held on a sstem used for business rates purposes and did not facilitate the production of information on a ward basis.  This was a system used by many Local Authorities and ward information was not an enquiry field available.  With regard to the funding received for the administration of the grant, there were challenges where businesses had not requested grant support, i.e. larger chains which could breach state aid regulations if a grant was claimed.  Funding not spent would have to be returned to Government as there would be a reconciliation completed.  Businesses were being encouraged to apply.  This was being done by letter as well as phone and email.  It was reported that the majority of the funding had been spent. 

Members asked a question about the discretionary fund available for those businesses with a rateable value under £51k.  Members were informed of the challenge and being mindful of the criteria which the Government had provided.  The amount of funding available, £2.5m, would not go far with the number of businesses in Oldham which did not qualify for the other schemes.  Applications to the grant would be assessed with the first phase held open until 12 June.

Members asked how many applications had been received to date and were informed that 209 businesses had applied, 35 of which were subject to a spotlight check.

Members sought and received clarification on the Transparency Agenda, review of grants, checks to be undertaken which included spotlight checks and fraud referrals.  The Council was in a position based on spotlight checks to stop payments to businesses not eligible for payment.  In relation to cases where grants have been paid where perhaps payments should not have been made, the payments can be stopped and a post payment review undertaken.  It was clarified to members that in relation to publishing details of the payments, especially sole traders where individuals could be identified, advice was being sought as the Council did not want to reach Data Protection Regulations.

Members asked who the prosecution agent would be, the Council or Greater Manchester Police and were informed that both options were currently available.

Members expressed thanks where grants had been paid quickly.

RESOLVED that the Small Business Grant Fund (SBGF) and Retail Hospitality and Leisure Grant Fund (RHLGF) Prosecution Policy be approved.