Lancaster council asks government for stamp of approval over £900k Eden Project Morecambe land gift

As we reported last week, Eden bosses are still working with the government over the Levelling-Up award of £50m in government funds towards the £100m scheme.

In-depth analysis of finances has been taking place in recent months as part of subsidy control requirements, to ensure the cash flow is on track when needed.

Paperwork is expected to be finalised early in 2024.

And Lancaster City Council is also helping with the process, having submitted a a request for a report to the government's Competition and Markets Authority's Subsidy Advice Unit concerning a proposed subsidy to support the construction of the new visitor attraction.

The city council has been required to complete a subsidy control assessment as a mandatory procedure under the Subsidy Control Act to set out why public funds are required as part of the funding.

Among the matters to be looked at is the land on which Eden Project Morecambe will be built, which is valued at £900,000.

In August 2021 the city council agreed to transfer the land to Eden with a peppercorn rent as its contribution to the project.

As part of the agreement between the council and Eden, as the project becomes established and visitor numbers reach an agreed level, a percentage of each ticket sold will be paid into a trust fund which will be used to benefit the local community.

Eden have also committed to a social value package, which will see locally sourced supplies and services being used, and local employment and training opportunities provided.

The remaining funding is to be obtained through a mix of private sources.

The SAU will evaluate the city council's assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). It is expected to complete its report within 30 working days.

A city council spokesman said: “Following the Government’s announcement of the successful Levelling-Up Fund investment for Eden Project Morecambe, Lancaster City Council (as the accountable body) has been required to complete a subsidy control assessment and refer this to the Subsidy Advice Unit (SAU). This is a mandatory procedure under the Subsidy Control Act to set out why public funds are required as part of the funding package.

“One of the matters covered by the subsidy control assessment is the land on which Eden Project Morecambe will be built, which is valued at £900,000. In August 2021 the city council agreed to transfer the land to Eden as its contribution to the project, and this is due to take place in 2024.

“The SAU, which sits within the Competition and Markets Authority, has registered the submission and will provide its report by the end of January 2024.”

If all goes to plan, work is expected to start on the site at the end of 2024, with a completion date of late 2026.

The scheme could directly create more than 250 jobs, as well as indirectly creating around 1,000 more in the wider economy through visitor expenditure.

The project will also enable collaboration between Eden and Lancaster University, resulting in numerous research and development projects with local and regional businesses.