Torbay Council has come under fire for advertising a £250,000 support fund only open to black restaurant owners.
The council publicised the fund in its recent business newsletter which stated: “The Black Business Fund aims to help Black-owned businesses in the restaurant industry that are experiencing financial pressures.
“Evidence shows that Black-owned businesses face disproportionate challenges in accessing the finance they need.
“The Fund is targeting food and drink firms because of the unique challenges they are currently experiencing.”
But Richard Tithecott, a local businessman, has questioned whether support should be open to all restaurants regardless of the ethnicity of its owner.
Mr Tithecott said: “Surely there are plenty of restaurant owners of all ethnicities having to juggle finances and pressures in our council area.
“I’m sure Torbay council advertising funding for local restauranteurs that are black owned only could create divide and ill will within that industry sector locally.
“This has the grubby fingerprints of woke self-gratification all over it.”
According to the 2021 census, 0.3 per cent of the population served by Torbay council is black, equating to just over 400 people.
The scheme is offered by Uber and Enterprise Nation who say the reason it is only open to black restaurateurs is because of ‘significant barriers black owned businesses encounter when trying to access finance.’
They cite Aston University’s Centre for Research in Ethnic Minority Entrepreneurship who, in partnership with Natwest, published a report that found Ethnic Minority Businesses were less likely to apply for bank finance because of mistrust.
One of the report’s major recommendations was ‘for the finance sector, particularly banks, to improve marketing and targeting of Ethnic Minority Businesses with innovative engagement initiatives such as local community hubs.’
The reports’ ten recommendations centred on improving trust between ethnic minority business and the finance sector, while actively including ethnic minority businesses in policy formulation to foster ‘inclusive growth’ and ‘trust-based relationships’.
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Mr Tithecott, who runs a local manufacturing business, said: “Are they implying that financial institutions such as banks are racist?
“As far as I am aware, when it comes to business funding or re-financing the only criteria banks are interested in are things such as the business model, financial plan, the overall viability of the business, and how you have historically managed the business, not what skin colour you are,” he added.
Reacting to the report, Natwest’s Andrew Harrison, Head of Business Banking at NatWest Group, said: “We’re committed to championing small businesses and supporting growth but we know that there are barriers which disproportionately affect Ethnic Minority Businesses (EMBs).
“This is why we aim for at least 20% of the places on our 13 nationwide accelerator hubs to be for ethnic minority entrepreneurs. In 2021, 26% of businesses in our hubs were EMBs.
In the 2021 Census, 18 per cent of respondents in England and Wales categorised themselves as an ethnic minority.
Torbay’s advertisement for the scheme states: “A total funding pot of £250,000 will be distributed to Black-owned restaurants that need additional financial support.
“Twenty-five restaurants will each receive £10,000, as well as access to mentoring from Enterprise Nation, to help boost their businesses.
“The money can be spent on professional services and/or equipment that will help a business grow.”
A Torbay Council spokesperson said: “Torbay Council is committed to supporting local businesses of all types, sectors and ownership.
“We offer a range of free business support services, such as one-to-one business support and workshops.
“Through our regular newsletter, we also signpost residents and local business owners to funding opportunities and support services run by external organisations which they may or may not choose to take part in.
“In our latest edition, this included the Black Business Fund, which is a nationally available initiative run independently of Torbay Council.”
Torbay Council serves the towns of Torquay, Paignton and Brixham in south Devon. It has been led by a minority Conservative administration since 2023.