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Birmingham City Council, Stoford Digbeth Ltd

  • The total value of the subsidy is £14.3 million. The purpose of the subsidy was to address the viability gap associated with a project to convert the former Typhoo building into a modern studio and office space for the BBC and a retail space.
  • Our key takeaways are:
    • Public authorities should obtain an independent review of the submissions made to them by the proposed recipient. Relying only on information provided by the recipient may mean they are not made aware of all the relevant factors (in particular, with respect to potential alternatives to the chosen subsidy available to the public authority).
    • If the context of the subsidy means that aspects of the assessment are limited, the public authority should set out this context in full and explain why it has led to a limited assessment.
    • Ensure to give clear and detailed evidence to demonstrate that any calculation used to identify a viability gap means that the subsidy is proportionate and the minimum necessary to achieve the objective.

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