Agenda item

The Corporate Finance Manager reminded Councillors that a community fund created from New Homes Bonus had been created within the 2015/16 budget.

He reminded members that the New Homes Bonus was a payment made to upper and lower tier councils to incentivise them to increase the number of available homes. Payments were based on the national average council tax band relevant to each property and paid annually for six years. It recognised newly built properties and conversions as well as bringing long-term empty properties back into use. Additional bonus payments were also made for each affordable home delivered. For those areas with both county and district councils, the payment was split so that 20% was paid to the county council and the remaining 80% was paid to the district council.

New Homes Bonus was not ring-fenced funding, which meant it was at the discretion of each local authority to determine how it should be spent. While some councils had chosen to absorb New Homes Bonus into its core funding, South Kesteven District Council’s Medium Term Financial Strategy stated that it should not be used to underpin the General Fund.

He explained that the new fund was created to support community projects. To fulfil one of the basic criteria the projects would need to be delivered by formally constituted groups and organisations. It was intended there would be three tranches of funding made available through the year against which groups could submit bids.

Discussion ensued on the appropriate parties to determine those bids. A majority of members favoured a panel of councillors with a non-Councillor as Chairman. The PDG suggested that the panel should consist of the three chairmen of the PDGs (or in their absence, vice-chairmen). Members felt that this would provide sufficient flexibility to prevent members considering applications from their own Wards. There was agreement that one member of the panel should not be a Councillor, with suggestions including a senior officer, a community representative or a representative from the South Lincolnshire Community and Voluntary Service. Most members of the PDG felt that an officer would be most appropriate to ensure neutrality and accountability.

Consideration was also given to allowing the South Lincolnshire Community and Voluntary Service determine applications but members of the PDG felt that accountability would be best achieved by keeping such decisions in-house.

It was proposed that grants, ranging from £500 to £10,000 could constitute a maximum of 80% of the funding for a project fitting into one of the following categories: community amenities, community buildings, community enterprise, community events and supporting communities. Grants could not be made for: projects that would result in private gain, anything going to other charitable organisations or social club profits, revenue costs of anything that would become regular activity. Applications could not be retrospective nor made in support of political or religious events. Awards would be limited to one per organisation unless they were for distinctly different projects.

Debate ensued on whether parish and town councils should be able to bid for funding. While the view was expressed that any projects for which parish or town councils needed funding should be anticipated when the precept was set, the consensus of the majority was that they should be able to apply to enable them to run community projects arising in-year.

Recommendations:

·         Applications should be determined by a panel of three Councillors being the Chairmen (or in their absence the vice-Chairmen) of the policy development groups and a senior officer of the Council

·         The PDG supported the proposed criteria

·         Parish and town councils should be eligible to put forward funding bids for community projects