Time is running out for businesses to bid for a share of the latest Regional Growth Fund (RGF) as the March 20 deadline for bids looms.
The RGF, the Government’s flagship economic stimulus package, aims to ease the dependency on public sector jobs in certain parts of the country by boosting employment and driving growth in the private sector.
It is designed to support projects and programmes with significant potential for creating long-term, private sector-led economic g
rowth. The RGF is a competitive fund, meaning that businesses need to clearly demonstrate how they will achieve these objectives if they are to be considered for funding.
Alistair Davies, a director at accountants Deloitte’s Bristol office and head of its UK grant advisory team, pictured, said: “When the RGF was launched earlier this year by Nick Clegg he urged budding businesses to produce “top-quality bids to access the money that can help them grow”, stressing that the Government can only invest in projects that will lead to “sustainable jobs and the best value for money”.
“For many businesses, the RGF takes the place of the funding previously available from Regional Development Agencies (RDAs). After the RDAs were phased out, the Government committed to three rounds of support through the RGF, which have so far provided businesses across the country with £2.4bn of funding – safeguarding an estimated 500,000 jobs nationwide. “
However, South West businesses have taken a relatively modest share of this compared to other parts of the country, receiving only £189m to date.
“This welcome but unexpected fourth round could now be the last chance West businesses have to get their hands on this kind of funding,” said Mr Davies, although he points out that business minister Michael Fallon has since announced plans to create an Exceptional RGF to allow the Government to respond quickly to specific “economic opportunities or shocks.
“With £350m up for grabs nationwide in the fourth round of the existing RGF, and a minimum of £1m awarded to any successful scheme, the prize is significant. However, interested businesses only have until March 20 to prepare and submit their bids.”
Among West firms receiving funding through the RGF is aerospace giant Airbus, which is to receive a £1.4m investment for its Filton plant. The money will help create 200 engineering jobs in key areas such as its work on wings for the A350 XWB (extra-wide body) family and the fuel-efficient A320neo (new engine option) aircraft, as well as engineering research.
The West of England Local Enterprise Partnership (LEP) is using £25m from the RGF to start an economic development fund that will spark growth and job creation while Destination Bristol has secured £500,000 through the fund to boost the city’s tourist industry and, it is hoped, create up to 300 extra jobs over the next three years.
