Financial Benefits from Public Authorities other than Subsidy

Project information

Index: 1127R4
Acronym:InCompass
Priority:1: Innovation and the knowledge economy
Sub Theme:Entrepreneurship and SMEs
Location UNITED KINGDOM SOUTH EAST Medway Kent Start/End date of the practice
Start: 2011
End: 2014

Topic of the practice

Support to SMEs

Good Practice Information

A few incubators receive financial benefits from local public authorities. For example, coFWD receives an exemption from property tax for the Project 161 building, but otherwise it does not receive any public funding. In other cases incubators located in publicly owned buildings benefit from reduced rents.
Obviously this costs public authorities money, just direct subsidies would, but this indirect funding is likely to be more acceptable if support of incubators is an issue of debate. Policy-makers may also relate indirect funding to the incubators’ use of vacant buildings or its contribution to neighbourhood improvement

Evidence of success

Reduced the cost burden to the start up organisation. Utilised 1 unused building for public benefit. Created and safeguarded 25 jobs, reduced the tax burden on the owner of the building. Encouraged property owners in the region to bring disused buildings back into public use.

Contact details to obtain further information on the practice

Estelle Timothy

Medway Council

Estelle.timothy@medway.gov.uk

www.medway.gov.uk

Annex completed on: 05-20-2015

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