Agenda item

The Cabinet Member for Cabinet Member for Council House building, Placemaking, and Local Economy introduced the report highlighting its support for small and medium-sized enterprises. The demand for Opportunity Workspace Haringey funding was noted, emphasising the importance of engaging with partners to increase the supply, making this funding valuable.

The Cabinet Member for Council House Building, Placemaking and Local Economy RESOLVED to:

(a) Provides delegated authority to the Director of Placemaking and Housing

to undertake further due diligence, negotiate and agree the terms, and

approve the final funding agreements for the recommended workspace

projects for the Opportunity Haringey Workspace Fund.

(b) Subject to satisfactory completion of the above, allocate up to £3.9m of

Opportunity Haringey Workspace Fund resources, as set out in section 6,

to the following projects with funding gaps, the details of which are set out

in the exempt part B report:

(i) Wood Green affordable creative workspace;

(ii) Tottenham affordable music studios workspace; and,

(iii) Tottenham affordable community co-working workspace.

Reasons for decision

1. The Opportunity Haringey Workspace Fund was set-up to enable additional

workspace to come forward in the borough, which is a key priority of

Opportunity Haringey – the Council’s inclusive economic framework. The

sources of funding are set out in section 6. It is an ambitious fund that aims to

have a catalytic effect through supporting new and expanding workspace

projects that have a funding gap. It was established as a result of:

(a) recognition that workspace is a highly effective way to support economic

growth, inclusive economy and regeneration for Haringey’s creative

economy and thriving SME sector, noting workspaces are in high demand

amongst SMEs and two thirds of the workspace in Haringey are focussed

on the creative economy;

(b) the Council having sufficient capital funding within the approved capital

programme, relevant external grants and Council match funding to

external grants, for spend on workspace projects;

(c) the aim to deliver additional workspace meeting funder requirements

within tight timelines; and,

(d) awareness of multiple compelling workspace projects in the borough with

funding gaps.

2. There was an open call for funding proposals starting from 19th December 2023 for a six-week period. Application briefing sessions were provided to interested parties. Following receipt of applications, eligibility requirement checks took place ahead of a multi-disciplinary funding panel convening to assess the applications in detail. The panel included officers from Economic Development, Regeneration, Property and Finance. The panel assessed and scored eligible applications in light of the following priorities: strategic priority alignment and clear funding gap, track record, deliverability, impact, and value for money.

3. The funding panel recommends Opportunity Haringey Workspace Fund

resources are allocated to the following projects:

(a)  Wood Green affordable creative workspace - Creation of affordable creative workspace in Wood Green. This project will enable much needed additional workspace in the borough and has potential to stimulate others in the market to bring forward workspace in Wood Green. It would support the cultural character of Wood Green, support local job growth, and will generate additional workspace in the borough. Forecast outputs: over 2,500 square metres of new workspace, 350 jobs, 160 businesses to be supported and bring in over £0.8m additional funding to the borough.

(b)  Tottenham affordable music studios workspace - Creation of affordable music studios in containers. This project will enable additional workspace in the borough, strengthen the music industry, which has a strong and growing presence in Haringey and Tottenham, and meets increased demand for more of this type of space in the borough. Forecast outputs: over 125 square metres of new workspace, 25 jobs and 15 businesses to be supported.

(c)  Tottenham affordable community co-working space - Creation of an affordable community co-working space in Tottenham to support existing and new residential communities with a modern inclusive work environment. Forecast outputs: over 1,250 square metres of new workspace, 250 jobs and businesses to be supported and bring in £0.7m additional to the borough.

4. The funding panel recommends the funding allocation as detailed above as it:

(a) will support Haringey’s creative economy, inclusive economic growth and

thriving SME sector;

(b) is a positive step to invest in some of the organisations and workspace

providers which are tried and tested, and investment ready;

(c) supports projects that meet the eligibility requirements, have a good

financial standing, have a clear funding gap that wouldn’t happen without

funding support, collectively bring in additional investment in the borough

and align with criteria outlined in 3.2;

(d) will enable additional workspace in the borough, fulfilling a key ambition of

Opportunity Haringey inclusive economy framework, which was adopted at

Cabinet in November 2023;

(e) fulfils funder requirements, enabling external grant funding to be invested

in Haringey, and meet the Council’s match funding requirements; and,

(f) the proposed projects for funding provide a balanced approach that align

well with strategic priorities, deliverability, impact, and value for money.

5. The funding agreements will have clear clawback rights for grants and call-in rights for loans, as well as other provisions that will ensure the workspaces

continue as envisaged for the long-term. This is important to ensure the Council has the right level of control over its investments over the whole period.

6. This report recommends delegated authority to the Director of Placemaking and Housing to negotiate and agree the terms, funding arrangements and approve the final funding agreements for the workspace projects.

Alternative options considered

1. Officers considered direct awarding the available funding as an alternative

approach to an open call for funding proposals through setting up the

Opportunity Haringey Workspace Fund. However, setting up the fund was

selected as the preferred option for reasons set out in paragraph 3.1.

2. Officers considered returning the funding drawn down to date from the City of London Corporation (as detailed below) that was used for feasibility studies

regarding re-developing Council commercial properties into workspace.

However, setting up the fund was deemed in the best interests of Haringey as it would enable a further £1.5m grant funding to be invested in the borough to

increase employment space which is needed for inclusive economic growth.