Benefits of scheme will be felt for years to come
After four years of supporting local businesses, the Marches Business Investment Programme (MBIP) is due for completion in June 2023. The Programme was part financed by European Regional Development Fund.
The MBIP, part financed by the European Regional Development Fund, was the successor to the Marches Building Investment Grant scheme and provided grants to SMEs in the Marches Local Enterprise Partnership (LEP) area which were constrained in their growth aspirations by unsuitable premises and a lack of finance for capital expenditure. The Programme helped to promote SME growth and expansion, increase productivity and support the creation of jobs.
Support was available in two strands: the Marches Building Investment Grant Scheme, which provided capital grants of up to £150,000 to finance new commercial builds, refurbishments and extensions of commercial premises, along with larger equipment purchases; and smaller grants of between £1,000 and £10,000 to assist with smaller capital equipment purchases, known as the Small Equipment Grant Scheme.
Across the Marches region, the MBIP has already created 193 jobs and generated over £3.6m in additional GVA. These figures are forecast to rise to over 300 and £35m respectively by the year 2028.
Herefordshire alone has benefited from 101 jobs created and an increase of £1.4m in GVA; again forecasted to rise to 183 and £13.5m by 2028.
Cllr Graham Biggs, Cabinet Member for Economy and growth, said: “I want to thank the economic development team for their work on the Marches Business Investment Programme. It has been a huge success, helping to boost local businesses and create jobs. Recent independent evaluation* showed that the main strengths of the programme included the continuity of individuals on the Steering Group, the balance between public and private membership on the Steering Group, the flexibility of the programme during the Covid crisis, straightforward application process and communication from the programme team with businesses seeking support.
“Satisfaction levels were also very high, with the percentage of survey respondents being either very satisfied or satisfied at each stage of the process ranging from 63% for the application process to 100% for decision-making and distribution of funds. The average satisfaction level across the five stages was 83%.
“Although MBIP is now closed, new funding is on its way courtesy of the UK Shared Prosperity Fund (UKSPF). You can find out more information on our website or contact business@herefordshire.gov.uk for further support and advice.”
Just two of the companies to benefit in Herefordshire are Danfords, and Hereford Pedicabs & Pedicargo.
Danfords is a Leominster based company which sells specialist concrete equipment which is imported from Europe.
The company applied for a grant in 2021 to support its growth. A new site had been acquired and the company needed a grant to construct a building on the site and to acquire some equipment. A grant of approximately £150,000 was provided towards overall costs of some £800,000.
The grant has enabled Danfords to recruit six new staff, with a further two being actively sought. The company’s turnover has increased, with further increases expected in the future.
Dan and Alex Fordham, owners of Danfords, said: “We would like to thank Herefordshire Council for the grant which has helped us considerably with our development and therefore create more jobs as we expand. We would also like to thank Herefordshire Council’s MBIP Programme Manager for her guidance throughout the grant process.”
Hereford Pedicabs and Pedicargo are a trade waste recycling company based in Hereford who operate all services by bicycle. They offer a trade waste collection service, a delivery service, an advertising service and a pedicab hire service.
The company applied for a grant to support the purchase of new machinery. The grant enabled the company to buy a machine which turns glass bottles into sand as well as a pallet stacking machine which aided in increasing the company’s capacity.
This allowed the business to accelerate its growth in a short space of time, which without the grant would have been self-funded and a much slower process. A grant of £8,000 was provided towards an overall project cost of £16,000.
The grant has allowed Hereford Pedicabs to significantly increase its efficiency as well as its turnover due to the increased allowance for storage generated by the pallet stackers. In turn, this has also led to job creation within the business.
Will Vaughan, from Pedicargo, said the grant would also help it develop a new sustainable, hyperlocal glass recycling service – which would be carbon positive because it used cargo push bikes to collect the waste.
“We aim to collect waste glass from businesses and turn it into sand for use in local flood prevention sandbags, this is an extension of our existing licensed trade waste recycling programme.
“We needed an 11kw hammer mill at our depot to process the glass into sand, which is where the Small Equipment Grant comes in – helping us to purchase the mill and turning the scheme into reality.”
Details of business support products offered in Hereford can be found on the Marches Growth Hub website.
Email business@herefordshire.gov.uk for further support and advice.