Challenge Fund support grant for small businesses

This scheme opened for applications on 13 November 2017

In August 2017, Herefordshire Council secured £5 million from the Department for Transport’s 'Local Highways Maintenance Challenge Fund' to resurface the A4103, A465 and A438, which are key transport routes for economic growth across the region. The 37 miles of resurfacing works need to be completed by the end of March 2018 before funding expires and this short timeframe has demanded a significant effort to ensure work is completed in time.

Concerns were raised by some local businesses during the first phase of the Challenge Fund resurfacing programme that long periods of road closures were having a negative impact on their businesses. While there is no statutory right to compensation for highway works, this financial support has been approved due to the unique circumstances surrounding the Challenge Fund resurfacing works. The programme is an additional scheme of major maintenance works and as the works are weather dependent, the winter period presents a further challenge to works being completed before the deadline.

While the resurfacing works have been coordinated to try and minimise delays, some full road closures have been required to ensure the works are carried out quickly and ensure the safety of those working on the roads. Herefordshire Council realises that this has had an impact on some businesses, particularly those who are reliant on passing trade and we apologise for the undue stress and financial implications which have been reported.

Given the scale and timescale of these roadworks, Herefordshire Council has developed a unique Challenge Fund targeted support grant to allow eligible businesses to access funds to help mitigate the financial impact felt during the necessary full road closures. This support will be available to eligible businesses who are directly affected and are able to satisfy a number of requirements, including:

  • Proximity to road closures
  • Reliant on passing trade
  • Small business status

Eligible businesses must be located on the affected route or within 500 metres of a Challenge Fund road closure, which has lasted longer than a month. All applications are limited to a period of three months following completion of the works.

Apply for the grant

For any queries about the grant and to return completed application forms to