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More help set to be announced for Norfolk's residents and businesses
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| Tuesday 7th July 2009 |
Norfolk County Council's Cabinet will meet next Monday (13 July) and decide whether to approve more than half a million pounds of financial aid to help people and businesses in the county through the recession.
Members of the Cabinet are recommended to approve two packages of support at the meeting. The first would see a £150,000 grant made that would establish a countywide Credit Union Current Account. The second would make a £400,000 long-term loan available that is aimed at helping Norfolk businesses' growth and cash flow and creating jobs.
These recommendations are being made as part of an update to Cabinet on what actions are being taken by Norfolk County Council to address the economic downturn.
Norfolk County Council has been in discussions with the Norfolk Credit Union (NCU) to see how it can assist people facing financial exclusion in the most effective way. This has led to the concept of creating a Credit Union Current Account (CUCA) for Norfolk, which will be backed by the Co-op Bank. CUCAs will be available to thousands of people across Norfolk who for various reasons are not able to open a normal current account at a high street bank or building society. This can lead to people paying more for services in cash, for example paying up front for utilities instead of by Direct Debit.
The report recommends that £150,000 of funding be made available from the county council's Strategic Ambitions fund. As well as setting up the current account, the funding will help strengthen the NCU to continue its expansion plans which include having 3,000 members by the end of next year and offering members ISAs and a children's account.
The report also recommends that a five-year £400,000 loan is made to Foundation East, which in turn would support new and established businesses in Norfolk with loans ranging from £3,000 to £50,000. Foundation East has been providing financial loans to businesses in Norfolk and Suffolk since 2004 and seeks out public and private sector investors who wish to contribute to and expand their loan fund. The £400,000 loan that is being recommended to Cabinet and taken from the county council's cash reserves.
Daniel Cox, Leader of Norfolk County Council, said: "In the past six months we have announced a number of measures designed to boost the local economy and help people facing financial difficulties. These have included pledging an extra £125,000 to local Citizens Advice Bureaux in addition to the £350,000 we provide annually, to help cope with the extra demand for their services in the coming year. We have also brought forward a number of routine maintenance works at schools and council buildings to support our contractors at a time when other work may be scarce.
"These latest recommendations for financial support to the Norfolk Credit Union and Foundation East are the result of listening to residents, businesses and partners and working out how we can most effectively help people in Norfolk through the recession. Many people and businesses are struggling to get credit at a time when they need it most, to boost their cash flow and keep people in employment during the downturn. We believe that making more credit available to people and companies through reputable and responsible lenders will help to safeguard the local economy and all those that rely on it."
Norfolk County Council's Cabinet will meet on Monday 13 July at County Hall. Members of the public are welcome to attend. |
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