Yorkshire receives major funding boost thanks to Growth Deals

THOUSANDS of jobs will be created in Yorkshire and millions of pounds invested in the region thanks to a series of Growth Deals the government has announced.

The first £6bn of local projects agreed as the first wave of the £12bn Growth Deals investment include the creation of a new National Agri-Food Campus in York, which will help the area become a global leader in food manufacturing, agricultural technologies, and bio-renewable sectors, creating up to 800 new jobs. Money will also be invested in a Glass Academy in Sheffield to train people to work in the city’s glassworks.

Meanwhile, the Leeds City Region Enterprise Partnership (LEP) has agreed an historic £1bn Deal with government that will create tens of thousands of new jobs and accelerate economic growth across the entire City Region. Click here to read the full story.

Sheffield City Region has secured £320m over a six year period from the Government’s £2bn annual Local Growth Fund (LGF) – the fifth most substantial Growth Deal that any City Region has made with government. The cash will create over 28,000 jobs and training for 40,000 people. Of this, there is £46m confirmed for 2015/16.

For 2015/2016, the Humber LEP has received £29m, Leeds City Region LEP, £73m and York and North Yorkshire LEP, £34m.

The £6bn announced today includes the complete allocation of £2bn from the Local Growth Fund for 2015-16, and, because the quality of the proposals was so high, in some cases commitments are being given for following years for important long-term projects so they can get underway. In addition, discussions with Local Enterprise Partnerships will continue, to prepare for future negotiations on the next round of Growth Deals to build on the momentum now established.

Projects beginning in 2015/16 are expected to be matched by local investments worth around twice the contribution from Central Government.

The cash boost for Sheffield City Region will go towards supporting over £600m worth of infrastructure projects, including improvements to Sheffield City Centre, transport links to new housing and employment sites in Dearne Valley and an extended airport link road to Doncaster-Sheffield Airport. 

The new funding will also enable the City Region’s leaders to create a £130m Skills Bank, which will provide training for 40,000 people in the Sheffield City Region, including between 5,000 and 7,500 apprentices. The funding will also be used to build new facilities at existing colleges, including the new British Glass Academy.

James Newman, chairman of Sheffield City Region LEP, said: “Sheffield City Region is getting a bigger share of the new funds than we might have expected and is clearly punching its weight when it comes to newly devolved powers and funds from Government.

’’We have secured the fifth largest amount of any LEP area and we are one of a very small handful of LEPs being given significant freedoms by Government as to how we spend our funding.’

“Our Growth Deal is the first step on a journey to enable the Sheffield City Region to take control of its own economic destiny. This is a strong start and, although we have not got everything we wanted, we have done well and we look forward to working with Government to increase their trust in our LEP so we will be able to take even more of our own funding and strategic economic decisions in the future.”

Dave Dalton, CEO of British Glass and The Glass Academy, said: “This is fantastic news for the city of Sheffield and for us as the trade association representing the UK glass industry. We are delighted to hear government is investing in skills and training projects, business investment programmes and the infrastructure needed boost the local economy, increase jobs and put our city firmly on the map.

“The glass industry is rooted in the work of a Sheffield University department 100 years ago so it’s fitting that the creation of the British Glass Academy world class centre of excellence as the hub of glass training in the UK will be based in Sheffield. By investing in the skills base, up-skilling the workforce and promoting research and development, the government is supporting the resurgence of the UK glass industry, recognising its heritage as well as its importance for the future success of manufacturing in the UK.”

The Prime Minister said that Growth Deals are a crucial part of the long-term plan to secure Britain’s future.

“For too long our economy has been too London-focused and too centralised,” he said.

” Growth Deals will help change all that. They are about firing up our great cities, towns and counties so they can become powerhouses. By trusting local people, backing business and investing in infrastructure, skills and housing, we can create thousands of new jobs. And that means more economic security, peace of mind and a brighter future for hardworking people across the country.”

The Deputy Prime Minister, who chairs the Local Growth Cabinet Committee added: “We are ending a culture of Whitehall knows best. Decisions over spending on infrastructure, business support and housing are being made at a truly local level.

“It will help end our over-reliance on the banks and the City of London, and generate growth, jobs, and ambition in towns and cities all across England.

“Growth Deals will create thousands of jobs, provide incredible new training opportunities for young people, build thousands of new homes and improve transport links across the country for people and their families; building a stronger economy and a fairer society.

“We’re placing the power and money in the hands of the people who know how to spend it best, making a real difference to local communities.”