Agenda item

Report of the Cabinet Member Finance

The Cabinet Member for Finance introduced the report and reminded Members that Council had taken a decision to invest in the Workshop Cheltenham (WSC) scheme.  However, in July 2020, in response to the impact of the Covid-19 pandemic, the Government announced a £900m ‘Getting Building Fund’, administered by the LEP, to fund shovel ready schemes which supported the economic recovery.  Council Officers and Directors of Workshop Cheltenham submitted a bid and the council was awarded £3.114m to fund an enhanced scheme.  As a result of this grant, a reduced level of council investment was required.  The rebadged Minster Innovation Exchange scheme has the potential to completely transform a neglected area of the town and forms part of the council’s key recovery plan from the impact of the pandemic. 

The LEP requested that Cheltenham Borough Council took over the commissioning lead for the construction of the building and promoter role and this has resulted in the need to waive the council’s contract rules to ensure that the work undertaken by WSC is progressed in a timely manner.    Given the revised approach on the commissioning lead, the Cabinet Member was requesting Council to approve the overall budget for the enhanced project.

In response to Member questions, the Cabinet Member confirmed that:

• Workshop Cheltenham Ltd was a completely separate entity to Cheltenham Borough Council.   Hub 8 represented a group of entrepreneurs who instigated the concept, are independent and have no links to the council.   They are not investing themselves but take a profit share out of it.
• The project was time limited and was ready to go, as the Building Better Fund was all about shovel ready schemes and if they were not completed by a certain time, the government would request the funding back.  That was why it had come as an urgent item to full council.  An Officer confirmed that the project had to be delivered by next Christmas so the intention was to use a highly fast construction method with modular buildings to be able to meet that delivery date.

One member referred to paragraph 4.2 of the report which considered the delivery of the project and the one option to use CBC staff, but questioned whether CBC staff would be able to fully resource this.  The Cabinet Member replied that the scheme was fully funded and part of the funding included project management which would be undertaken by WSC.  The Member also referred to the removal of hundreds of cars in 3.3 of the report, suggesting this would not happen, they would just use a different car park.

The chair moved to debate and a Member expressed his full support for this excellent scheme for Cheltenham which was vital to reenergise the economy at this difficult time partiularly as there were very few development opportunities in the town centre.  It represented an excellent use of land and the government funding was to be welcomed.

Upon a vote it was RESOLVED THAT

The gross capital budget for MIE of £4,671,000, as per Appendix 5, be incorporated into the council’s budget and capital programme for 2020/21.