A SOUTHEND restaurateur has threatened legal action against Southend Council over cash that has been handed out to businesses.

John Cross, owner of The Boatyard restaurant in Old Leigh, said he is struggling to “understand the logic, fairness and even-handedness” of Southend Council giving businesses in the borough up to £114,000.

The cash has come from a £1.8million Government grant, which is decided by a panel of seven different organisations.

The authority insists it is to help promote growth and bring jobs to the borough.

Last week, the Echo revealed that plush seafood restaurant Bourgee had been accepted for a £100,000 grant, along with Antonia Waite, who wants to convert a sun shelter in the Leas, Westcliff, into an eaterie.

But Mr Cross has questioned the group of individuals on the panel and whether other businesses in the borough were more deserving of the windfall.

Writing to the authority’s chief executive Rob Tinlin, he said: “I would be obliged if you will accept this letter as the first step on the feasibility of a possible legal challenge by myself, which I believe, the gathering support of many other on the validity of the council’s behaviour.”

The businesses were two of 23 that have been given various different amounts of the pot of cash, which the authority had to bid for itself, from the Government.

Mr Cross has called for greater transparency on the whole process, and he claims that the first he heard about the scheme was when he read the Echo’s story.

He has queried if some of the businesses deserve the windfall, when others are struggling to survive and having to shut up shop.

He added: “It is a slap in the face for a lot of small businesses in the area, many of whom are struggling to survive as we have in this geographical area an overcrowded restaurant, cafe, and bar sector.

“I am all for fair competitiveness and the survival of the fittest mantra drives businesses to improve and to be inventive, but these mind-blowing cash advances are just plain crazy.

“This is not simply sour grapes as I am not, never have, never will, or never would accept any public funding for any of my businesses.

 

'Prove you deserve the cash' - Southend Council

BUSINESSES have to prove to the panel they deserve a cash grant, Southend Council insists.

Although the authority was given £1.8million by the Government, businesses have to apply for a slice of it, called the South Essex Growth Grant.

Each application goes in front of a panel, which is made up from an official from Southend Council, Essex Chambers of Commerce, Federation of Small Businesses, Southend Association of Voluntary Services, two businesses in the town, and Southend Business Partnership.

It is audited by representatives from Lancaster University.

The council official is either Scott Dolling, head of economy, regeneration and tourism, or Emma Cooney, the authority’s group manager for tourism and economy.

The amount of funding is based on two factors – the number of jobs being created and that the applicant needs to provide at least 70 per cent of the funding themselves.

It is worked out roughly as one job per £10,000 given, and funding is handed out retrospectively, so bidders get it after they have invested themselves.

To date, £600,000 has been awarded, with the council claiming it has helped create 185 jobs and protected a further 168.

The grants were launched at a business briefing in June, and publicity has included radio coverage, newsletters to businesses, and business events.

Graham Longley, deputy leader of the council, said: “I am delighted we were successful in receiving £1.8million of funding which has come to Southend rather than another area.

“It is being used to support local businesses, create new jobs and safeguard others.

“It is also bringing in significant private sector investment and providing a major boost to the area’s economic growth.

This is good news.

“The money is not from local council tax. It is not money that can be spent on council services, or other local initiatives as is being suggested.”

 

Echo comment on the situation

The Echo is fully supportive of the town’s businesses and any investment that provides regeneration and jobs should, on the face of things, be welcome.

Later this month, the paper will champion the cream of Southend businesses at its own Southend Business Awards.

Bourgee and the converted sun shelter will almost certainly be successful in their respective locations.

They should be commended for choosing to open in areas of the town that need investment.

They will become major players in the local economy and this cash has surely helped entice them to the borough.

However, the lack of clear information on this grant allocation scheme and the way decisions are made has upset other established businesses.

While it seems odd to criticise cash handouts that will undoubtedly boost the town, concerns have been raised about how the cash was awarded.

The Echo is a newspaper that gives a voice to businesses in the town and we would never shirk from that.