Opinion - Grants help to keep our economy going but more transparency is needed

The government has handed out billions in covid survival grants to thousands of companies closed by lockdown.

And that is a good thing because the alternative is worse.

The deficit could rise from £55bn to £300bn. But it should prevent the extinction of firms that pay tax and employ people who pay more tax.

And, like any extinction, once they’re gone they’re gone.

So it is free money, but rather than rejoicing, most recipients simply feel relief.

Bosses at Global Windows in Handsworth, Billy Hawes and Liam Hulme, are feeling just that after Sheffield City Council finally approved a £25,000 grant.

It will keep the 14-strong company, which supports a further 30 self-employed fitters, alive, as it slowly gets back on its feet.

The cash landed after Billy contacted The Star in frustration over a query that held up the application for weeks. Pressure from the paper appears to have fast-tracked an appeals process. The grateful pair can now face the future with more confidence.

Grants always come with masses of red-tape and strings - and some are wrapped in secrecy.

Applying for them takes time, resources and brain power that could be spent actually doing more business (in normal times). And there’s no guarantee of success.

But if you’re inventing something it can be worth it, because you’re paying out long before money is, hopefully, coming in.

Zoo Digital, The Floow, SleepCogni, Ioetec, Elements and Webster Technologies have all had thousands in Government Innovate UK grants.

But the Sheffield City Region organisation hands out the biggest business incentives of all.

McLaren received £12m to set up in Rotherham and Boeing got £5m to build its first European factory in Sheffield.

You can argue about whether it’s worth it in terms of jobs created (no) versus the impact on the region’s economy and reputation for advanced manufacturing (definitely).

But the secrecy that comes with them is interesting.

Last week we learned SCR officials made trips to Israel to woo Curvalux. The broadband systems company now plans to set up its first factory in the region.

An £8m SCR grant will pay a whopping 40 per cent of its £20m costs, according to figures from the boss.

What do we know of the decision-making process behind that grant - and a further 14 SCR Business Investment Fund applications in the last few months? Nothing.

And as for predictions of jobs and growth based on grant-funded investments? The temporary closure of the Boeing Sheffield factory - and a big round of redundancies across the business - and 1,200 job losses at McLaren Group show that, sadly, they're very much ‘subject to change’.

It’s our money being gambled and that gives us the right to demand a lot more transparency.