Four district councils in Lincolnshire have united in support of the Business Lincolnshire Growth Hub (BLGH) by signing up for a new shared service initiative.

This collaboration follows a significant reduction in funding for the BLGH.

Previously, the BLGH received around £20m through the European Regional Development Fund (ERDF) 2014-2020 program.

However, the UK Government's transition from ERDF to the UK Shared Prosperity Funds (UKSPF) has led to a substantial decrease in funding.

A report before Lincolnshire County Council next Tuesday, said that despite the reduced money the UKSPF, would offer a broader range of project support, including community and skills assistance, in addition to business support.

Out of the seven local authorities in Lincolnshire, the City of Lincoln, North Kesteven, South Kesteven, and West Lindsey have chosen to participate in the Business Lincolnshire UKSPF Shared Service.

However, Boston, East Lindsey, and South Holland have decided to establish a local business support service and have not opted for the Shared Service.

The initiative is set to be funded until the end of March 2025.

It will utilise the core services of Business Lincolnshire, which are provided by the County Council Enterprise Growth Team.

The Lincolnshire support hub aims to improves business support and connections and boost revenue. Image credit: Nub News.

The core service relies on council budgets and a £316,625 grant from the Department for DBT for the 2023-2024 period.

According to the report: "The shared service aims to provide a universal core business support service that incorporates as much as possible from the [previous] program to meet thematic and sector priorities, thereby reducing the proliferation of individual services and helping to reduce patchwork provision."

Local businesses in Lincolnshire are facing ongoing economic challenges, including rising costs, supply chain issues, and recruitment difficulties.

The changes in funding and the introduction of the Shared Service are expected to impact the level of support available to businesses.

Despite the reduced support and fewer grants, the shared service aims to provide a universal offering accessible to all businesses, regardless of their location.

The shared service will also be complemented with additional advisory support funded through alternative sources.

The Enterprise Growth Team will continue to seek additional funding options to provide supplementary support, ensuring that businesses in Lincolnshire receive the assistance they require to prosper.