The CCLA/Room151 Impact Awards showcase finance teams with a direct impact on their local communities and the environment. This week we spotlight Liverpool City Council’s efforts to support the hospitality sector during the pandemic while Warrington worked on new green homes with social impact investing. Submissions for the awards can be made here. Categories here.
Mel Creighton: Liverpool’s ‘cafe culture’ revival
Finance services are by their nature support services, as well as enablers, but that doesn’t mean we can’t be innovative, or recognise innovation, when we see it. That’s exactly what happened in Liverpool, as we prepared to emerge from the first lockdown last year.
It quickly became clear that for the city centre to thrive and survive, we would need to act fast and with confidence. Our Culture Liverpool team approached me and my team for funding to help support the hospitality sector. Almost half of Liverpool’s business rates come from leisure and hospitality, the equivalent of £270m, a year and supports 50,000 jobs across the city region. The pandemic proved a moment for finance to be bold and brave.
It didn’t take long though for the team to realise the proposal presented to us was not only innovative but also integral to the reopening of the city and the economy safely. The team pulled together to identify £450,000 to allocate to the project and Liverpool Without Walls was born.
The project gave businesses a grant to purchase outdoor furniture to increase capacity allowing cafes, bars and restaurants to increase their covers by 2,723. This led to an increase in sales, improved financial viability and in some instances staff to be brought back off furlough.
Funds for road repairs was directed to closing streets so the businesses could utilise the street and allow pedestrians to socially distance. The look was a co-ordinated continental style café culture where people were more important than cars.
The £450,000 investment generated £8.9M additional sales, and for every £1 of public funding £20 economic value was generated, giving many businesses a lifeline, keeping people in employment, business rates coming in for the council and boosting the reputation of the city.
Mel Creighton is director of finance and resources, Liverpool City Council.
Danny Mather: Delivering ‘major social impact investing’
In recent years the role of the accountant has changed from that of the traditional stewardship role to that of a business partner facilitating major organisational change.
This is best exemplified at Warrington where finance has played a key role in delivering major social impact investing over the last few years.
Warrington like many other councils has set up a housing company to build affordable green family homes for residents in the borough.
Finance has been at the core of introducing this exciting social impact investment. The original business case was compiled and the project lead by finance.
The detailed business model was developed by finance to show the affordability of the scheme for both the council and the housing company. Our internal audit team played a lead role on advising on risk and governance. The council’s VAT manager was also instrumental in advising on the tax planning of the new company.
Once the company was set up the work of finance do not end. Finance advised on all major controls of the new company. Finance lead on all the contracts between the Council and new Housing Company with particular emphasis on negotiating the loan contracts and buy back arrangements.
Finance structured the budget monitoring system of the new company.
The new houses are to be green sustainable homes incorporating ground sourced heat pumps, solar panels batteries, and EV charging points.
Finance modelled the financials of all these green initiatives and submitted grant applications were applicable.
After checking that there were no conflicts of interest, two members of the finance team have also been appointed to the board of the company because of their expertise in the area of finance and housing.
Finance also produced the tender to recruit a Warrington based firm of accountants to produce the yearly company accounts and work closely in partnership with them.
Danny Mather is head of corporate finance at Warrington Borough Council.
