Fletcher calls for rethink on ‘bureaucratic’ RGF
ENTREPRENEUR Scott Fletcher has attacked the “bureacracy” surrounding the Regional Growth Fund after it emerged that the majority of the money – more than £2bn – has not yet reached the private sector.
His criticism came after a progress report this week from the National Audit Office
revealed that two thirds of the cash earmarked to create private sector jobs in the regions, remains unspent.
Mr Fletcher, founder of Manchester-based software company ANS Group, says this is hurting economic growth in the regions and argues there needs to be a rethink on how the £2.6bn fund is administered.
A member until last year of the Greater Manchester local enterprise partnership – a group of business leaders which helps set the economic strategy for the city region – Mr Fletcher said: “It is a constant battle against bureaucracy to get the money working.
“The fund was originally created to replace jobs in regions of the UK that were particularly badly affected by the cut backs in public sector employment but their needs to be a re-think over how best to getting the money working.”
As of April 2013 the North West had made more bids for cash from the RGF than any other region of the UK. 58 different projects have made applications for a total of £315m. Recipients include Altrincham-based trailer manufacturer Cartwright, Bruntwood and Liverpool-based Redx Pharma.
The NAO report calls on the Department for Communities and Local Government and Department for Business, Innovation and Skills, to face up to the ‘significant challenge’ of speeding up the distribution of the cash.
