Purpose

This report proposes a pilot scheme to support some small businesses occupying council-owned retail premises who are facing financial hardship due to rent increases from lease renewals and rent reviews. The scheme will offer a rent support grant based on assessed social, economic, and environmental value, helping to protect businesses that contribute significantly to the community.

Decision

DECISION;

1. Approved the development and implementation of a pilot Retail Rent Support Scheme for some Council-owned retail premises to the value of up to £532k of rental income forgone over 5 years which would support up to 10 businesses.
2. Delegated authority to the Community Benefit Rent Reduction Panel, chaired by the Head of Revenues and Benefits, to approve individual support awards under the pilot scheme, who will report to Grants Determination Sub Committee (GDSC).
3. Noted the specific equalities considerations, as set out in Paragraph 4 of the report.

Reasons for the decision

?      To respond to cases of financial hardship among small businesses in Council-owned retail premises, arising from significant rent increases due to lease renewals and rent reviews.

?      To support businesses that deliver high social, economic, and environmental value to the borough.

?      To test the feasibility of a structured rent support scheme that balances Council income forgone with wider community benefits.

?      To ensure compliance with best value obligations while providing support through a transparent, non-cash grant mechanism.

?      To generate an evidence-base through a time-limited pilot that will inform the design, governance, and financial implications of any future wider rollout.

?      To mitigate the risk of business closures and preserve the diversity and resilience of the local retail economy.

Alternative Options

Progress rent reviews and lease renewals in line with current policy. No support scheme. Achieves best financial returns for council over long term. Likely to see some businesses close and social and community outputs decrease and some local campaigns and representations from businesses and the community. If businesses close, units will be re-let. Some security costs will be incurred during the reletting process and rental incomes will cease during marketing and re-letting process.

Pause rent reviews and lease renewals until summer 2026 - Suspend lease renewals and rent reviews in line with policy until mid-2026, then proceed at pace. Consider an accelerated programme, prioritising financial benefits. Local social and economic concerns will not be considered.

Do nothing - No rent reviews or lease renewals carried out. No increased rents. Does not meet our best value or fiduciary obligations. Could result in

issues in the future.

Action by:

CORPORATE DIRECTOR FOR RESOURCES (A. KASSIM)