Local Lib Dems welcome £96m investment in north east through Regional Growth Fund (Easington Liberal Democrats)

Easington Liberal Democrats <info@easingtonlibdems.org.uk>

Local Lib Dems welcome £96m investment in north east through Regional Growth Fund

October 31, 2011 3:49 PM
Originally published by Rt. Hon. Sir Alan Beith MP

A Government investment of £95.8 million will help create and safeguard more than 25,000 jobs across the north east, the Deputy Prime Minister Nick Clegg has announced.

The second round of the Government's £1.4 billion Regional Growth Fund (RGF) will support 49 bids from north east businesses and local partnerships with projects to expand their operations, create new jobs and attract private investment.

Of the 25,500 jobs created or protected in the north east, around 8,500 will be directly created jobs, and more than 17,000 will be in the supply chain. The RGF is a £1.4bn fund which is designed to encourage enterprise, growth and jobs in the private sector and support areas and communities that are dependent on the public sector. An expected 326,000 jobs will be created and safeguarded across the country thanks to the fund.

MEP for the North East Fiona Hall commented:

"This is vital investment - a real shot in the arm for the North East economy. More than 25,000 jobs, at companies right across the region, will be created or protected by today's announcement.

"Businesses should be congratulated for submitting high quality bids that have helped ensure the North East is one of the big winners from this round as it was for the last.

"Crucially, there is a snowball effect to this money. For every £1 the Government puts in, the private sector ends up investing £5. That's the smart way to invest when we're having to make savings to reduce the deficit.

"As Nick Clegg said on Friday, more needs to be done to help the North East and more will be done. Today's news is a very welcome step on that difficult road to recovery."

Deputy Prime Minister Nick Clegg said:

"I am delighted to be able to announce this boost to business, which will jump start growth and create jobs that last in the places that really need it. This targeted support for businesses across the country allows them to expand and create jobs. It unlocks private sector investment - with at least £5 put in for every £1 of public money.

"People in the rest of Britain have been let down for far too long by governments in thrall to one Square Mile of it. The first pot of Regional Growth Fund money is already making a difference across the country - helping to rebalance our economy so that every region and sector benefits."

Business Secretary Vince Cable said:

"We need to be doing all we can to enable businesses and organisations to create much needed jobs and inject private investment into the economy. This is a very significant boost to local communities, and the Regional Growth Fund will help businesses to drive local growth."

For more information on the Regional Growth Fund please visit: http://www.bis.gov.uk/policies/regional-economic-development/regional-growth-fund