Dumfriesshire, Clydesdale and Tweeddale MP David Mundell is backing pioneering plans to stimulate local economies by unlocking their unused heritage.
The Heritage Lottery Fund (HLF) has launched Heritage Enterprise, a new £125million grant programme specifically designed to stimulate local economic growth, generate new commercial income along with new jobs and skills by unlocking the latent commercial potential of unused historic buildings and sites.
With a commitment of at least £25million per annum over the next five years, HLF’s new scheme will empower not-for-profit organisations, such as community groups and social enterprises, to work in partnership with the private sector to rescue and return neglected historic buildings to productive use.
“This is an area with a rich heritage, especially in historic buildings and sites which may not be reaching their full potential,” said Mr Mundell.
“Research shows that historic buildings are particularly successful in attracting creative industries and new business start ups, and the Heritage Enterprise programme will help tap into this potential for commercial enterprise, boosting local economies, jobs and skills,” he added.
Heritage Enterprise is designed to address 'market failure' – where historic buildings have failed to attract investment to realise their potential business premium because their cost of repair has meant that it is not commercially viable for private developers to take on. Grants of between £100,000 and £5million will plug the gap between the costs of repair and the value of the property after restoration.
Projects can also apply to the HLF for funding to support capital works whilst a project is being planned, urgent repair works and the building of new temporary structures designed to allow 'meanwhile uses'.
Mr Mundell said: "Heritage Enterprise is a really bold and welcome move by the Heritage Lottery Fund at exactly the right time. Finding new models for investing in heritage are vital to long term sustainability and we know from experience that investment from the private sector not only secures the future of these important buildings but also has a very positive impact on local economies."
He added: “The important role heritage plays in creating a strong sense of identity and place is well known. And heritage buildings already play an important role in economic development, with businesses based in listed buildings being highly productive, employ approximately 1.4 million people and make an estimated annual contribution to UK GDP of £47billion.
“Of course, we understand that historic buildings are not without their challenges, but with Heritage Enterprise, the Heritage Lottery Fund is addressing the factors that have in the past limited investment from private business."
To help local communities begin a Heritage Enterprise project and organise themselves to take on a heritage building with a constitution which will be eligible for funding, HLF is also offering start-up grants between £3,000 and £10,000. These grants will enable groups to create the organisational structures needed to deliver projects and to help with the associated costs, such as obtaining professional and legal advice.
The deadlines to apply for a Heritage Enterprise grant began this month, with the first decisions in Autumn 2013.