Thank you for your interest in this story

To continue reading this article, subscribe to the Stray Ferret for as little as £1 a week

Already a subscriber? Log in here.

Jul 2023

Last Updated: 28/07/2023

Politics

Government says council's £20m bid for Harrogate Convention Centre lacked 'evidence and rationale'

by John Plummer

| 29 Jul, 2023

Harrogate Borough Council's bid for £20 million of government money to upgrade the town's convention centre lacked evidence and rationale and may have over-stated the economic benefits.

Government feedback on the bid, released following a freedom of information request by the Stray Ferret, revealed several areas of concerns with the bid.

This is despite the fact the council, which was abolished at the end of March, paid consultants £45,000 as part of its submission to ministers.

More than 100 projects were awarded a share of £2.1 billion from round two of the Levelling Up Fund in January.

But the Department for Levelling Up, Housing and Communities, led by Michael Gove, rejected Harrogate's application.

The decision was a significant blow to the council's plans for a £49 million upgrade of the ageing centre and cast further doubt on the facility’s future.

The feedback described the bid as "relatively strong" and listed stakeholder engagement and deliverability as strengths. But the economic case was widely criticised.

The feedback said:

"There were some key areas that could have been enhanced, particularly in the economic case relating to the analysis of monetised costs and benefits, and the appropriateness of data sources and evidence."

It went on to say although the bid "evidenced the need to revitalise the visitor economy", it "could have been strengthened by drawing on a broader range of socioeconomic indicators to demonstrate the multifaceted nature of the problems that the intervention had been designed to address".

It added:.

"There was a lack of supporting evidence and rationale. The bid could have been strengthened by incorporating more evidence to support the assumptions linking outputs to outcomes and impacts, e.g., it would have been good to understand whether there was unmet demand for this type of space, and how the increased capacity of the centre would address the problems identified."

Benefits 'may have been overstated'

The feedback also said the council's economic case was not based on government guidance. Citing one example of this, it said:

"There was no justification for the 40-year appraisal period (typically it would be 30 years) and so benefits may have been overstated. More detail and discussion in relation to the counterfactual could be provided too - for example, the application mentions that they could borrow money and it also states that £115m of investment would be required in the ‘Do Nothing’ scenario, without any further explanation.

"There were only environmental benefits monetised; with no attempt to monetise other categories of benefits that would be typical for this type of proposal, e.g., wider land value uplift, potential wellbeing benefits from arts/culture, etc."

In a section on deliverability, the council was praised for its "strong, coherent bid with a high level of detail and explanation throughout".

Consultants paid £45,000 for failed Harrogate Convention Centre bid

Government rejects £20m levelling up bid for Harrogate Convention Centre

Warning that Harrogate would ‘wither on the vine’ without convention centre

The feedback also recognised the bid's "strong levels of engagement with most of the relevant stakeholders".

North Yorkshire Council, which succeeded Harrogate Borough Council on April 1, provided the feedback following our freedom of information request.

Richard Cooper, the Conservative leader of Harrogate Borough Council at the time of the bid, has said he will not comment on any council issues relating to his time in charge of the local authority.

Thank you for your interest in this story

Government says council's £20m bid for Harrogate Convention Centre lacked 'evidence and rationale'

Benefits 'may have been overstated'

Read more: