NW LEPs get £65m for RGF ‘programme bids’

FUNDING, advice and support for SMEs across the region will be more readily available after local authorities and Local Enterpise Partnerships received £65m for ‘programme’ bids in the latest round of the Regional Growth Fund.

The Greater Manchester LEP will get backing for a £35m package of business support including help for start-ups, training, research and development and SME working capital.

Mike Blackburn, chair of the LEP said: “This will give confidence to businesses and help them to invest in their future growth.

“There are a number of sectors that have thrived in Manchester. These include science and innovation, financial and professional services as well as creative and digital. With the right support we could create further sustainable jobs in these sectors, and today’s announcement takes us further on the way to even more success.”

Lancashire was another winner with a £4m grant to support a £13m programme to support 600 new businesses and create 1,000 jobs.

The Lancashire Business Enterprise Programme has been developed in partnership by Lancashire Business View magazine, Regenerate Pennine Lancashire, and Blackburn with Darwen Council and will support a minimum of 600 SMEs trading for less than 36 months to achieve their growth potential and create 1,000 new jobs.

The enterprise programme will offer capital grant investments of between £5,000 – £50,000 to the eligible small firms. The programme is specifically designed to meet the demand of those SMEs that would not be able to access business support from other national and local schemes.

Economic development company Regenerate Pennine Lancashire will be the delivery partner, while Blackburn with Darwen Borough Council will act as the accountable body for the grant funding.

Richard Slater, publisher of Lancashire Business View magazine, said: “This is fantastic news for the county. What sets it apart from traditional grant schemes is that this one is being led by the private sector and will be driven by entrepreneurial thinking. Grants will be linked to the number and quality of jobs created, the amount of private sector investment attracted, and the additional economic impacts accrued.”

The Liverpool City Region LEP has been handed cash for a three-year business grants scheme, while Wirral Council will use the RGF support to securing more investment and a bigger share of the engineering market and associated supply chain for the offshore wind sector.

Meanwhile, the Ellesmere Port Development Board has won funding for infrastructure works to enable five speculative developments,

In Cumbria cash will allow the LEP there to provide grants to enable growth of SMEs, specialist manufacturers and businesses seeking to grow through export.
 
Business Secretary Vince Cable told TheBusinessDesk.com the Government was pleased with the RGF and said there was a possibility of fourth round of the fund could be made available.

He said: “We don’t need a fourth round at the moment as it will take some time for this latest round to come through, but we’ve got an open mind as to whether the programme should continue, we’ll see over the next couple of months.”

Discussing the general economic situation he added: “There are still some very serious problems in the economy – we’ve not had growth for quite a long time. Problems remain in the banks, in our main export market, Europe.

“Our great strength though is that we are financially stable and the employment position has held up remarkably well.”

Asked about Labour’s criticism over the impact of RGF on delivering jobs and economic growth, he said: “I think the criticism misses the point somewhat, these are predominantly private enterprises, and while there have been some delays, which is inevitable in a programme of this size,  for ever £1 of money we’re putting in it’s leveraging £6 of private sector investment.

The speed that the RGF cash reaches businesses was addressed by David Ost, North West director at EEF, the manufacturers’ organisation.

He said: “The government must not rest on its laurels, and the delays experienced in previous rounds must be avoided with funding flowing out to business much faster. The longer-term future of the fund must also be clarified, especially if government sees this as a key element of its growth strategy.”
 
“In addition, while the RGF plays a useful role, it will only have its maximum impact in helping to create a stronger better balanced economy if it is part of an overall government plan to deliver this.”