Anger over Morpeth aid package restrictions

Posted by The Journal on Jan 8, 09 09:28 AM in News

Anger is growing in Morpeth over restrictions placed on the use of an emergency fund launched to help stricken businesses get back on their feet.

Regional development agency One North East provided the £500,000 relief package within days of dozens of Morpeth shops and businesses being forced to close following the severe flooding in September.

So far, £262,000 of it has been paid out in grants to help flood-hit businesses with clean-up costs, staff wages, replacing damaged equipment and insurance excesses.

But now traders and local councillors in Morpeth are frustrated that ONE is refusing to allow any of the remaining money to be spent on a promotional and marketing campaign to attract shoppers and visitors back to the town.

They argue many businesses not directly hit by the flooding have still seen their trade slump because of a perception that Morpeth is "closed", and the general drop in economic activity since the September deluge.

Yesterday Coun John Beynon, Castle Morpeth Council's executive member for the economy and a member of the local economic recovery group, said the whole town and its economy would benefit if ONE changed the criteria for spending the £500,000 fund.

"All we are asking is for some of this money to be released and spent on an advertising and promotional campaign to tell people that Morpeth is open for business again.

"The annoying thing is that One North East says this use of the money doesn't meet their criteria. I would say then change the criteria, because the impression given was that this £500,000 was made available to help business in Morpeth recover from the flooding."

Chamber of trade chairman, Stuart Lishman, said: "We feel this fund should be more widely used and that One North East should be seen to be supporting businesses in the light of what has happened in the last few months."

ONE head of business investment, Dr Simon Goon, said he was pleased that the £500,000 "economic shocks" fund had helped many Morpeth businesses at a time of great need.

"This cash, which was part of a larger, £2m fund for the whole region, was created for the sole purpose of responding to natural disasters, so it would be inappropriate for grants to be used for marketing or advertising purposes.

"Anything left over in Morpeth will return to the main pot, which will be used to help businesses across the North East through any other unforeseen crises in the future."

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