Areas that have traditionally been reliant on public sector jobs can apply for funding to boost regional enterprise activity, the deputy prime minister announced today.
The £1bn Regional Growth Fund is aimed at helping communities at risk of being harshly affected by public sector spending cuts. It will help areas most dependent on public sector employment make the “transition to private sector-led growth” according to the government.
Private and public sector bodies will be able to apply for funding, which will run from 2011-2013, by demonstrating proposals that can bring in private investment and support private sector jobs growth.
Speaking in Bradford today, Nick Clegg said: “The Regional Growth Fund will create the conditions for growth and enterprise in the regions by stimulating investment and create sustainable private sector jobs.
“Alongside our commitment to waive some employment taxes for new businesses starting up in targeted regions of the country, this fund can make a real difference to companies during difficult times.”
The government also outlined plans to introduce local enterprise partnerships to replace Regional Development Agencies (RDAs).
Commenting on the abolition of the RDAs, business secretary Vince Cable said the coalition was determined to rebalance the economy towards the private sector and it was important to drive growth across the whole country.
“We want a structure that reflects the genuine interests and commitment of enterprise, local councils and other stakeholders like universities and colleges,” he added.
“Local enterprise partnerships will provide that vision and then take on the task of renewing local economies and tackling local barriers to growth. Today we are asking them to tell us about their vision and I’m looking forward to what they’ve got to say.”
Further details on the Regional Growth Fund, and the introduction of local enterprise partnerships, will be published in the government’s forthcoming White Paper on local and regional growth.
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