Haringey Council has announced a shift in funding strategy for the Wood Green affordable creative workspace, delaying its opening to September 2026. The project aims to support the cultural character of Wood Green, support local job growth, and will generate additional workspace in the borough.
At a Cabinet Member Signing meeting on Wednesday, Councillor Ruth Gordon, Cabinet Member for Placemaking, and Local Economy, approved an amendment to the Opportunity Haringey Workspace Fund. The fund, initially agreed upon in March 2024, will now allocate £1.5 million of external grant funding to the proposed tenant operating the workspace, Affordable Workspace Partnership (CR) Ltd, instead of the property owner. This decision follows due diligence and funding term discussions.
Specifically, Councillor Gordon has provided delegated authority to the Corporate Director of Culture, Strategy and Communities to undertake further due diligence, negotiate and agree the terms, and approve the final funding agreements for the recommended workspace project for the Opportunity Haringey Workspace Fund. The Approval of an Amendment to the Opportunity Haringey Workspace Fund report notes that funding allocation is subject to satisfactory completion of due diligence.
The original plan anticipated funding the property owner of a site in Wood Green, who would then lease the fitted-out commercial space to an organisation. However, the council found that the property owner was unable to agree to a claw-back provision, which would protect the council's investment if the space were used for a different purpose in the future. The proposed workspace operator, Affordable Workspace Partnership (CR) Ltd, agreed to this provision.
The clawback provision stipulates that if the facility's purpose changes within 10 years of the fit out, the recipient must repay the grant on a pro-rata basis. This is calculated based on the remaining time within the 10-year period. For example, if the recipient provides six years of workspace but then changes its use, they will need to pay back 40% of the grant[1].
Councillor Gordon also noted that officers considered other options, including returning the funding to the City of London Corporation, the external funder. However, retaining the fund was deemed to be in the best interests of Haringey, as it would enable a further £1.5 million grant funding to be invested in the borough to increase employment space. Another option considered was re-allocating the £1.5 million to two other approved Opportunity Haringey Workspace Fund projects in Tottenham, but this would result in a loss of valuable additional creative and affordable workspace in Wood Green.
Affordable Workspace Partnership (CR) Ltd will then transfer the grant funding in arrears upon completion of works (milestones) to their landlord St William Homes LLP who will commit to completing the fit out by end of July 2026 and repaying any funding that is considered unlawful subsidy (a standard term in capital grants).
The project aims to support Theme 5 of Opportunity Haringey Works Places and Spaces, promoting quality workspace provision and encouraging additional workspace across the borough. The workspace is projected to create at least 2,121 square metres of new workspace, support 350 jobs, and assist 80 businesses over the next decade, while also generating £0.7 million in match funding for the borough. The forecast outputs meet the external funder requirements.
The Approval of an Amendment to the Opportunity Haringey Workspace Fund report also notes that the project will contribute to the Haringey London Borough of Culture 2027 and aligns with the Opportunity Haringey inclusive economy framework, adopted in November 2023.
[1] The clawback provision is such that if there is a change in the purpose of the facility over a 10-year period post fit out, then the recipient needs to repay the grant on a pro-rata basis. This pro-rata basis is calculated on the percentage of time left within the 10-year period. So if the recipient provides 6 years of workspace, but changes it use, then they will need to pay back 4 years' worth (40% worth).
