BASINGSTOKE and Deane Borough Council is set to spend half of the £1million fund set up for environmentally-friendly projects to improve buildings for community groups and homeowners.

As previously reported by The Gazette, the borough council created a £1m Green Investment Fund in April 2013 for green projects across Basingstoke that cut carbon emissions, reduce waste and protect the natural environment – but the council is yet to spend any of the money.

However, the borough council’s environment chief, Councillor Hayley Eachus, has now unveiled plans to spend half of the fund – and if approved by the borough’s decision-making Cabinet on Tuesday, two new funds will be set up.

Cllr Eachus has proposed a £100,000 revolving loan fund for projects to allow community groups to improve insulation, lighting, heating or install renewable energy technology in community buildings in a bid to lower their energy bills.

If approved, the maximum loan that will be provided to community groups will be £25,000, but they will have to fulfil a set of requirements including the need for the group to be in control of the premises and, if renewable energy projects such as solar panels are installed, the building will need to be well insulated.

As well as the revolving loan fund, Cllr Eachus is proposing to set aside £250,000 – up to £10,000 per household – to provide low-cost loans for homeowners to carry out energy improvement schemes in their homes.

The borough council estimates that there are currently 3,290 people living in fuel poverty, which is calculated by the Government as having an income below the official poverty line when households have paid for their energy bills.

If approved by the Cabinet, a £50,000 grant fund – up to £3,000 per home – will also be set up for the homes most in need for those who are not eligible for a loan.

Loans will only be available to householders who have sufficient equity in their property to act as security.

Discussions are currently taking place with charity Parity to see if they would take on the administration for both loan funds. They currently offer a fixed interest rate of 5.49 per cent after a three per cent subsidy from the council, which will cost the council £90,000, but the borough council are trying to lower the interest rate.

A further £10,000 will be set aside to cover administration costs.

Cllr Eachus told The Gazette: “What we wanted to do was to use the money for those most in need to reduce their energy bills and keep their homes warm.

“I think it is a positive step and I am happy with the proposals. I have spoken to Basingstoke Transition Network and they have a network of people they can market this to.

“We have committed £500,000 to this. We are not just going to leave it, and we will constantly monitor the areas, and if there is not much take up in one area, we can move the money around.”