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New £1.4bn Regional Growth Fund goes live

CAB 184-10 
28 October 2010

Deputy Prime Minister, Nick Clegg, has today declared the Government’s £1.4bn Regional Growth Fund open for business. The fund will support communities currently over dependent on the public sector. Businesses and local communities will now be able to bid for financial help to boost private sector growth and create jobs in their area.

Lord Heseltine will Chair the Independent Advisory Panel, which will consider all bids submitted to the fund. Lord Heseltine will be supported by Deputy Chair, Sir Ian Wrigglesworth and a panel of academics, business and civic leaders.

Speaking on a visit to Manchester to promote local growth, Deputy Prime Minister, Nick Clegg said:

“For too long growth in the economy has been pinned on a few sectors, like financial services, while other great British industries have been ignored. Prosperity has been confined to certain postcodes while huge swathes of the country have suffered serial neglect.

“The Coalition Government is determined not to repeat these mistakes. We will support growth across the whole country, rewarding hard work and innovation in all of our industries. We understand that areas which rely on the public sector for jobs will need special help.

“Millions of people across Britain are being asked to bear their share of the difficult decisions needed to get the public finances in order. It’s only fair that everybody benefits from future growth too.

"Crucially, spreading prosperity across the country also means giving local communities a greater say over how their money is raised and spent. That is why this Government is looking closely at ways of allowing local authorities to keep the business rates they collect."

Notes to Editors

1. First round bids for funding are requested by 21 January 2011. Full details of the principles for the Fund are available from the Regional Growth Fund website http://www.bis.gov.uk/policies/regional-economic-development/regional-growth-fund
2. The membership of the Independent Advisory Panel for the Regional Growth Fund is as follows:
   • Lord Heseltine, Chair
   • Sir Ian Wrigglesworth, Deputy Chair
   • Felicity Goodey (Businesswoman, former senior BBC journalist)
   • Tony Greenham (Programme Head, New Economics Foundation)
   • Richard Lambert (Director General, CBI)
   • Jon Moulton (Chairman, Better Capital equity group)
   • Caroline Plumb (Entrepreneur, Freshminds)
   • David Rowlands (Chair of Gatwick Airport Limited and Angel Trains Group Limited)
   • Mark Seligman (Chartered Accountant and Banker, Credit Suisse) Andrew Shilston (Finance Director, Rolls Royce)
   • Lord John Shipley (Former Leader Newcastle City Council)
   • Tony Venables (Academic Economist, Oxford University)
3. The announcement forms part of a White Paper on Local Growth published today. In a statement to Parliament, Business Secretary Vince Cable will also announce the first wave of successful local enterprise partnerships, bringing together local business and civic leaders to drive growth and create jobs in their communities.

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