Purpose

Decision on a proposal for energy support.

Decision

The Executive Resolved

That  (i)    financial support be approved in principle to The Lightbox of up to £131,000 over a maximum two-year period, subject to the following conditions being satisfied;

(a)  that a request for financial support has been submitted to the Council;

(b)  that adequate independently verified evidence has been provided to the Council demonstrating that the increase in tariffs would result in The Lightbox being unable to continue its operations;

(c)  the Council being satisfied, following receipt of a request for financial support and receipt of satisfactory legal, financial and subsidy control advice as appropriate, that;

(i)     either the provision of the requested financial support will not provide a subsidy; or

(ii)    the provision of the requested financial support can be given using either the exemption for minimum financial assistance or the exemption for SPEI (services of public economic interest) assistance in section 36 and 28 of the Subsidy Control Act, 2022; and

          (ii)   authority be delegated to the Council’s Chief Executive in consultation with the Strategic Director – Finance and Economy and the Strategic Director – Governance and Corporate to determine the outcome of any requests for financial support in line with the provisions in Recommendation (i), following receipt of satisfactory legal, financial and subsidy control advice.

Reason: The decision is required to enable the Council to respond in a targeted and proportionate way to the impact of the TEL tariff change on an organisation that occupies a Council-owned asset.  The decision is also required to seek in principle approval of the financial support, subject to various conditions being satisfied.  The proposed support is considered to represent a prudent course of action which accords with the Council’s fiduciary duties because it helps mitigate the risk of higher costs and liabilities falling on the Council that could arise if The Lightbox became financially unviable, while allowing time for transition and adjustment.