COMMUNITY PROJECT GRANTS IN ENGLAND
Big Society has Many Funds and Websites
There is frequently a mistaken idea that everything about the Government’s Big Society is all on one website. It’s not. But here are some pointers to funds linked with the Big Society programmes.
Big Lottery Next Steps for Social Investment
Under Next Steps BIG Lottery is making up to £6mn available to support social investment proposals, especially Social Investment Vehicles, which are well developed. Social Investment means funding that leads to a positive social change and seeks a financial return – which involves paying funding back, possibly with interest or some other form of dividend. The programme was launched on Wednesday 16 November 2011. There is more about Social Investment below.
Big Lottery Reaching Communities for Buildings
Funding for Outreach Buildings
BIG Lottery is obviously a key fund for projects for improving or replacing existing buildings where a wide range of community activities take place. The Reaching Communities programme funds projects that help people and communities who are most in need.
Priority Areas
Reaching Communities will only support buildings or sites in most deprived ‘Lower Super Output Areas’ (LSOAs) in England:
- the most deprived 20% of LSOA’s categorised as urban
- the most deprived 20% of LSOA’s categorised as rural (town and fringe)
- the most deprived 50% of LSOA’s categorised as rural (village/hamlets/isolated dwellings)
CommunityBuilders Fund
Communitybuilders are looking for up to six of the best, most promising examples of sustainable, community regeneration projects in England to be pioneers for the new Communitybuilders Fund.
The Fund wants to support ‘community anchors’ in England’s most deprived neighbourhoods or those that can demonstrate financial contributions from their community.
Capital Funding for Buildings
Communitybuilders is offering primarily capital funding for:
- property renovations and refurbishments
- property or land purchases (and some related fees like architects and surveyors)
- purchase of vehicles,
- IT equipment
- fixtures and fittings
Size of Investment
Minimum investment considered is £250,000. Maximum is £750,000. Communitybuilders is a loan fund and investments will have a minimum 80% loan element, with 5% interest on the loan.
Social Impact Bonds and Funds
The Social Investment Concept
Colleges and other education providers have been discussing various Social Impact Funds – which represent a fast growing variant of funding community projects.
The latest is the Social Investment Fund from Deutsche Bank, announced on Monday 07 November 2011:
” Deutsche Bank announced today that it has launched a groundbreaking £10m social investment fund, the first investment bank to create a UK fund dedicated to supporting social projects with a financial return.”
“The Bank’s Impact Investment Fund will operate as a fund of funds working with portfolio managers to channel investment into sustainable social businesses over the next three years, aiming to generate a return that more than covers its costs over the next 10 years.”
Social Impact Bonds and other strategies using private funds to invest in community projects are controversial among community organisations.
If the pilots work and Bonds take off, they may bring a profound change in the way some charity and voluntary sector projects are financed. Investors rather than Government will provide the finance and receive a dividend from public funds if the projects achieve a pre-defined level of success.
Peterborough Pilot
The best known pilot is with released young offenders in Peterborough. Investors will get their money back if the project reduces offences committed by the target group by 7.5%. If the reduction is more than that, returns rise by more but are capped at 13% a year. If reoffending falls by less than 7.5%, investors will not get their money back.
Some in community groups argue that this is all part of a ‘corporate guilty conscience’. Others say that corporate investment shouldn’t be making money through investments like this and that profits or surpluses should be reinvested in local communities.
Bristol Together
For many in Social Enterprises there are different and more acceptable ways of funding projects like this. For Bristol Together Triodos Bank arranged funding for a Social Enterprise that supports a programme of job creation for ex-offenders in Bristol. Triodos worked with Esmée Fairbairn Foundation and a private individual, successfully securing a £600,000 investment to purchase and renovate empty properties in Bristol.
Key for Education Providers
The key ingredient is that many education providers have project management skills and resources to manage projects like this on behalf of local communities. Whichever side of the argument education providers take, this is an increasing source of funding which can’t be ignored.
Social Investment Business
It’s a good idea to follow the Social Investment Business website. Though the closing date for the Social Action Fund has passed, there will be similar bidding opportunities and more funds to come.
Adult Literacy and Numeracy and Community Learning
The Chancellor’s Autumn Statement on Tuesday 29 November 2011 on page 61 says that the Government “will reform adult basic literacy and numeracy provision by piloting a new funding method for the providers of courses, which creates incentives for them to deliver the greatest skills gains for learners on basic skills courses”. There is more about Adult Community Learning on the “Community Project Grants” page.
“New Challlenges. New Chances. Further Education and Skills System Reform Plan” from Department for Business, Innovation and Skills, published on Thursday 01 December 2011, on page 13 says on “Community Learning”:
“BIS funding will continue to support a universal community learning offer, with a wide range of learning opportunities available to all adults in England. The consultation endorsed a new, clearer commitment to using the public funding subsidy to support access, and progression in its widest sense, for people who are disadvantaged and who are furthest from learning and therefore least likely to participate. In the 2012/13 academic year we will pilot different locally-based ‘community learning trust’ models to channel Adult Safeguarded Learning funding and lead the planning of local provision in cities, towns and rural settings. If this proves to be an effective model we will roll out community learning trusts across England to begin full operation from summer 2013. The new trusts will take account of the views of local government, local communities and local business leaders to ensure the purpose and objectives for the budget are implemented in ways that meet local need. A prospectus will be launched in spring 2012″.
COMMUNITY PROJECT GRANTS IN SCOTLAND
Local Councils and Community Benefit from Renewable Energy
With more onshore windfarms gaining planning consents and becoming operational, several local authorities are now developing and formalising their policies and guidelines for Community Benefit. Some examples are provided below. This is not an exhaustive list and further examples will follow in later Huckfield briefings.
Since many local communities are affected by development of windfarms, this section recognises that most Renewable Energy Community Benefit funds rightly prioritise applications from local communities.
Dumfries and Galloway Council
Dumfries and Galloway conducted a Windfarm Community Benefit Framework Review in April 2011. “Windfarm Community Benefits. Revised Approach 2011 Information for Communities” Section 7 refers to a Minimum Developer Contribution:
“The standard minimum rate of contribution is £5,000 per megawatt per annum based on the installed/consented capacity of the windfarm. For example for a windfarm development with installed capacity of 25 megawatts, the community benefit fund would be £125,000 per annum. This rate will be index linked from 1st January 2011 based on the Retail Price Index”.
“Windfarm Community Benefits Revised Approach 2011 Information for Developers” in Section 6 refers the establishment of a Regional Socio Economic Fund:
“50% of the funding will be ring-fenced for a Regional Socio-Economic fund. The purpose of this fund is to invest in social, economic and environmental projects that support a sustainable low carbon economy. Projects will seek to deliver in one or more of the following areas:
- Business and skills
- Environment and community
- Cultural and tourism
- Affordable housing
- Community transport
- Improved broadband connectivity
The region-wide fund will take applications from constituted community groups, communities, organisations including the public sector from across Dumfries and Galloway. Further information about the operation of this policy can be obtained from Dumfries and Galloway Council, Economic Development Service, Business and Enterprise Team on 01387 260078.
South Lanarkshire Council
South Lanarkshire was one of the first local authorities to set up a Renewable Energy Fund. With Whitelee and the other windfarms, Community Benefit practice in South Lanarkshire is now well established.
The two options are:
- Main renewable energy fund – grants over £10,000 up to 50% of total ‘eligible’ costs.
- Local grant scheme – grants of less than £5,000 and up to 100% of total ‘eligible’ costs for smaller community-based projects
Application for financial assistance for projects within a 10km radius of participating renewable energy developments will be accepted from:
- public organisations and agencies
- partnerships, trusts, co-operatives and other non-government organisations
- community groups, associations or organisations
- any business, co-operative or other trading enterprise located, or offering a service benefiting communities, within a 10km radius of participating developments.
Applications will be considered from outside the 10km radius if it can be demonstrated that the people who will benefit live inside the eligible area. Any grants awarded would be proportional to the percentage of residents who would benefit from the project.
Argyll and Bute Council
Argyll and Bute Council has had a policy on Community Benefit since 2004, when it was decided by Councillors that the initial tariff would be £2000 per megawatt installed, with an additional £1000 per mW depending on annual output. The latest list of Argyll and Bute Community Windfarm Benefits gives an indication of distribution of these benefits.
Scottish Borders Council
Scottish Borders’ Council has issued a comprehensive toolkit “Achieving Community Benefit from Commercial Windfarms” on page 10 says:
“There are no hard and fast rules about the level of community benefit which can be achieved, but some real examples include: – Highland Council aims to achieve £4,000 to £5,000 per installed megawatt per year”
Highlands Council
On Highlands Council has also made clear its intention to maximise community benefit from windfarms, a policy to be launched on Friday 24 February 2012:
“Members also gave the go ahead for a new concordat to be established which will set out the terms of a new relationship between the Council and developers. As part of this agreement it will be the Council’s responsibility to provide the framework and infrastructure for receiving and then disbursing Community Benefit and through which developers will agree to provide not less than £5,000 per installed megawatt annually that will appreciate each year in line with the UK Retail Price Index”
Other Organisations and Community Benefit from Renewable Energy
As more windfarms receive planning consent, are being constructed and become operational, in addition to local authorities, other organisations are now formalising their approaches to Community Benefit associated with these developments. The following provides some Scottish national examples:
Scottish and Southern Energy (Scottish Hydro)
In November 2011 SSE announced details of a new Scotland Sustainable Energy Fund that could be worth more than £90 million over 25 years:
“The fund will be available for organisations promoting skills development, community energy schemes and improving the built and natural environment. The fund is in addition to the £150 million SSE has already committed to support community projects in Scotland over the 25-year projected lifetime of the company’s existing and planned wind farms”.
SSE’s commitment is based on a tariff of:
“£5,000 per megawatt for all new onshore wind farms constructed in Scotland from 1 January 2012. This will comprise £2,500 for local community initiatives and £2,500 per megawatt for the new Scotland Sustainable Energy fund”.
As progress is made, there will be further details in future Huckfield briefings.
Scottish Power
Scottish Power operates the Green Energy Trust, providing grants up to £25,000 for renewable energy with community benefit, including a wider educational element.
Forestry Commission Scotland
Forestry Commission Scotland is working with developers to build wind and hydro projects on national forest land. FCS has published a helpful guide to its thinking in “Opportunities for Community Involvement In Hydro or Wind Renewable Energy Development On the National Forest Estate“.
Forestry Commission Scotland deserve credit for setting the “benchmark tariff” of £5000 per installed megawatt since this is becoming the standard tariff for wind farm community benefit across Scotland.
The Opportunities for Community Benefit document shows selected developers for Hydro and Wind Generation Lots across Scotland. The developers will engage with local communities about processing Community Benefit. All this is still at an early stage of development. But further information will be posted in future Huckfield briefings as soon as it becomes available, especially where developers follow precedents above of allocating benefits available into local community projects.
Key changes summarised