Decision details

The Portfolio Holder for Growth will be asked to approve the provision of a one off £30,000 grant to Discover Newmarket, from the existing Economic Development grants budget, on the condition that the grant is used to pay off their historic loan with West Suffolk Council (for the same sum).

Resolved:

That the provision of a one off £30,000 grant to Discover Newmarket, from the existing Economic Development grants budget, on the condition that the grant is used to pay off their existing loan to West Suffolk Council be approved (for the same sum – monies will not physically exchange hands).

In 2014 to support the ‘Newmarket Experience’ (previously run by the Council) to re-launch as ‘Discover Newmarket’ (under a Community Interest Company) an interest free loan was provided by the then Forest Heath District Council (predecessor Council to West Suffolk Council).

The interest-free loan of £30,000 enabled Discover Newmarket to purchase a new website and booking system, and a new vehicle. This loan would fill a short-term funding gap, envisaged to be paid back within five years.

Discover Newmarket had been in discussions with the Council regarding grant funding to pay off their loan with the now West Suffolk Council to support their on-going business model and viability. In doing so, they referenced the grant from the former St Edmundsbury Council provided to the Destination Management Organisation (DMO) Bury St Edmunds and Beyond (£150,000 over three years between 2016 – 2019).

Discover Newmarket currently received 40% of its income from its stakeholders, which significantly supported the business model and provides much needed stability. Other sources of income were through guided tours and tourism membership fees. West Suffolk Council had not provided any core funding to Discover Newmarket prior to this current request of a one off grant to pay off their outstanding loan.

It was being proposed that West Suffolk Council provided a £30,000 grant to Discover Newmarket from the existing Economic Development grants budget, on the condition that the grant was used to pay off the existing loan to West Suffolk Council (for the same sum).

That Discover Newmarket begin to repay the loan to the Council in full, but this would have a dramatic effect on the business as it continued to recover from the effects of travel restrictions during the pandemic. This would also treat Discover Newmarket differently to Bury St Edmunds and Beyond and Visit Clare that both received grant funding.

That Discover Newmarket repay a portion of the loan. However, this was still likely to cause disruption to the finances of the business as it continued to recover from the pandemic.