Decision details

To enter into two contracts to continue delivery of Growth Hub business support

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Decision Maker: Leader

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

Using the £385,390 UKSPF funding for 2025-26 to enter into two contracts to continue the delivery of the Growth Hub business support service for Cheltenham.

Reasons for the decision:

Cheltenham Borough Council will be allocated £385,390 UKSPF funding in April 2025 to deliver a range of projects within agreed objectives set out here: UK Shared Prosperity Fund 2025-26: Technical note - GOV.UK
Officers are currently assessing potential projects which could deliver against these objectives while also meeting council priorities. A further decision on these will be required once reviewed.

In the meantime, one project which requires a more urgent decision is the Growth Hub business support service. Cheltenham Growth Hub provides business support to start up and existing businesses in the Cheltenham area. It utilises the national Growth Hub brand and is delivered in Cheltenham by two external partners:

1. Gloucestershire County Council, providing:

• CRM, marketing, software licenses, web site (development/updates) and support
• Core delivery functions, including network manager, marketing manager, project administrator

2. Workshop Cyber Ltd, providing:

• Face to face and virtual business support
• Business events
• Business training courses
• Access to co-working office space
• Business mentors

Gloucestershire County Council provide support across the county which has been funded by other districts while Workshop Cheltenham are focused solely on providing support to businesses located in Cheltenham postcodes.

Both partners have delivered the Growth Hub service under the previous allocation of UKSPF funding for 2023-24 and 2024-25 and both partners employ staff responsible for this delivery.

In order to continue the delivery of Growth Hub support in 2025-26, a decision is required under urgency powers to reduce the risk of a gap in provision. This is particularly important as staff are employed via this contract and currently have no assurance of employment after 1st April 2025.

The recommendation is to continue to deliver the service ‘as is’ for this final year of funding, pending a review into future delivery models once future, longer-term, funding arrangements are known. The values of this are as follows for 2025-26 (based on request for funding by each partner):

Gloucestershire County Council = £35,000
Workshop Cyber Ltd = £67,848

Alternative options considered:

To delay the decision to enter into the delivery agreement.
This is not recommended as a delay would potentially lead to staff seeking other, more secure, employment, risking the continuity of delivery and delaying or impacting on achievement of outputs and outcomes.

To decide not to enter into the delivery agreement with Workshop Cheltenham Ltd.
Some form of funded business support is helpful for the successful growth of the economy. Given that the next allocation of UKSPF funding is for one year only (2025-26), the recommendation is to continue to deliver the service ‘as is’ for this final year of funding, pending a review into future delivery models once future, longer-term, funding arrangements are known.

To decide not to enter into the delivery agreement with Gloucestershire County Council.
This is not recommended as usage of the Growth Hub brand is contingent on the partnership with the county council as they hold the licence for use with the Department for Business and Trade. The brand has also already built up strong awareness within the business community. In addition, there are benefits including centralised marketing and reporting as well as the shared economies of working in partnership across the county while other districts are in the partnership as well. Again, this would apply pending a review into the longer-term delivery of business support.

Declarations: None.

Contact: Helen Mole, Head of Economic Development, Comms and Marketing Email: [email protected].

Publication date: 11/02/2025

Date of decision: 10/02/2025