Organisations play a waiting game as RGF bids are considered

ORGANISATIONS aiming to secure money from the Government through its new Regional Growth Fund have submitted almost 450 applications in the first round of bidding for a share of the £1.4bn pot.

The Department for Business, Innovation and Skills has said all the bids will now be considered by members of the Independent Advisory Panel set up to oversee the scheme.

The fund has been set up to provide economic development funding in the wake of the closure of regional development agencies. However, whereas the RDAs had £1.4bn at their disposal each year, the RGF funding will have to be eked out over three years.

As the funding is scarce, the Government has stipulated that all applications must be match funded. Bids will be considered on merit based on the benefit they bring to an area in terms of jobs and investment.

Funding will also be set aside to help protect vulnerable communities from the worst effects of the current austerity measures.

It is estimated that bids worth around £39m from Birmingham-based projects have been submitted to Government for RGF money.

Among those vying for the cash are extensions at Birmingham Airport, improvements to the A45 Birmingham to Coventry road and £22m for infrastructure works at Longbridge.

Bids have also been submitted for loan funds to aid the growth of small and medium-sized businesses in the area.

In North Staffordshire bids have been made to expand the innovation centre at Keele University to support the development of high-growth technology businesses, while an application has also been made for a new media centre in Stoke-on-Trent to support the development of new digital enterprises.

Once bids have been assessed by the advisory panel, a number of recommendations will be made to a group of ministers chaired by Deputy Prime Minister Nick Clegg.

Mr Clegg said: “It is vital to support growth across the country by decentralising power to local areas to promote growth, and investing to support the transition to private sector recovery.

“There are clearly lots of good ideas out there on how to create jobs and growth and I look forward to reviewing the bids we have received – nearly 450 – for the first round of the Regional Growth Fund.”

There will be a second bidding round later this year and the Department for Business, Innovation and Skills will announce the dates for this shortly.