14.04.11

Regional Growth Fund to Create New Jobs in England

The Government expects over 100,000 new jobs will be created and safeguarded under plans announced to invest £450m of its new Regional Growth Fund (RGF) in businesses across England.

The RGF is a £1.4 billion fund designed to encourage enterprise, growth and jobs in the private sector and support areas and communities that are dependent on the public sector.

The first round of the RGF will see an expanded amount of public investment support 50 bids by companies and partnerships who have demonstrated how they would create jobs and a high level of private sector-led sustainable economic growth in their local communities over the coming years.

The Government expects over 27,000 jobs to be directly created and safeguarded, with close to a further 100,000 jobs in associated supply chains and local economies.

The £450 million being invested by the Government through the first round of the RGF is expected to leverage more than £2.5 billion of private sector investment.

The second round of the fund has now opened for bids and this round will aim to allocate the remainder of the fund (nearly £1 billion).

Business Secretary Vince Cable commented:

“Supporting job creation in the regions is vital if we are to drive growth in our local communities.

“We have received a large number of ambitious and highly competitive bids to this first round of the Regional Growth Fund, which will help a number of businesses across the country to expand and create thousands of new jobs.

“The Regional Growth Fund is a competitive fund and we wanted to see proposals that created jobs in the private sector, in areas of deprivation and that is at risk of suffering from public sector cuts. I’m confident that the successful bids we have chosen will deliver on this.”

Conditional allocations have been made to successful bidders and will now be subject to a due diligence process, which will establish whether the Government is confident that the organisations can deliver on the proposals in their bid and be agreed through contract..

For further information visit the BIS website.

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