Greater Manchester’s councils submit £50m growth fund bid
GREATER Manchester’s 10 local authorities have submitted bids to the Regional Growth Fund worth £50m, TheBusinessDesk understands.
The 10 local authorities have collaborated to ensure that the government’s regional growth fund isn’t swamped by similar applications from neighbouring areas.
Instead, the authorities have decided between themselves which bids to prioritise based the potential for jobs created or safeguarded through funding priority schemes.
As a result, some areas such as Manchester have submitted several bids for funding whereas other boroughs such as Trafford and Bury are understood not to have submitted a single bid.
Among the schemes that are believed to have been submitted for funding are the redevelopment of the Royal Eye Hospital site at Manchester Science Park by Corridor Manchester (in partnership with Bruntwood) and a new phase of development of Ashton Moss scheme by Tameside Borough Council (Muse Developments). Rochdale Borugh Council has submitted a bid for further funding for the Kingsway scheme alongside Wilson Bowden, Stockport Council for Hatton Gardens (Seddon Group) and Salford City Council for Port Salford (Peel Group).
The deadline for submissions to the new £1.4bn regional growth fund was last Friday (January 21). The national fund was launched in a bid to plug some of the shortfall caused by the closure of the regional development agencies. The North West Regional Development Agency’s total spend in its last financial year was almost £600m.
A spokeswoman for the Department for Business, Innovation and Skills (BIS) which will be responsible for allocating the funds, told TheBusinessDesk.com yesterday that it could not give a firm date as to when decision on bids would be made. She also added that the number of bids that have been submitted was much higher than expected.
BIS confirmed that it received 450 bids for the first round of funding, which is distributing £250m-£300m. It also said that a second round of funding would be available this year, with the dates for application due to be announced shortly.
“My colleagues and I will now assess each bid and decide which proposals we believe will have a role in boosting the private sector and helping those adversely affected by cuts in the public sector,” said Lord Heseltine, who is chairing a bid assessment panel that also includes former Salford URC chair and NWDA board member Felicity Goodey, Better Capital founder John Moulton and CBI Director-General Richard Lambert.
Once it has assessed the bids, it will advise a panel of ministers chaired by deputy Prime Minister Nick Clegg as to where the funding should be allocated.
Speaking at an event organised by Pro Manchester on January 25, Manchester City Council chief executive Sir Howard Bernstein said: “We must recognise we’re operating in a different market. The traditional approach of public sector gap funding is not going to be so plentiful. We’re working hard on how to replace that, we’re thinking through alternative investment models.
“Last Friday we submitted a hugely exciting bid to the Regional Growth Fund that will help us on our way. . . We’ve a significant number of projects which are viable which are being stalled because of the lending market – the scarcity of loans, but also the pricing of that debt and finance.”
He added: “We’re still trying to bring forward big, transformational projects which at one time would have had the support of the Northwest Development Agency. We’re working with our partners at Bruntwood and Manchester Science Park on the Royal Eye Hospital and expect to bring that forward over the next few months – with direct council funding if necessary.”
