Aerospace giant Airbus, City of Bristol College and North Somerset Council are to receive financial aid under the Government’s £950m Regional Growth Fund – but the way the cash is allocated has been criticised by the area’s leading business organisation.
The three are among nearly 120 businesses, councils, educational establishments and projects across England to receive funding under the scheme, which aims to support economic growth and job creation and innovation by encouraging private sector led investment.
According to the Government the fund is particularly targeted at areas and communities which are dependent on the public sector and will help them make the transition to sustainable private sector-led growth and prosperity.
The amounts received by individual projects are not being made public but in some cases run into several million pounds. In total eight projects across the South West received funding. North Somerset Council had sought funding to help re-open the Portishead-Bristol railway line but this was rejected. Instead its allocation will be used on other schemes.
While the latest, second, round of funding was trumpeted by government ministers as being real help in tough times, the way it was allocated was being questioned by Business West, with policy and communications director Tessa Coombes saying: “With only 7% of approved bids providing benefit to our region compared to 20% for the North West and North East, we are naturally disappointed and we would urge the Government to consider its approach for future funding opportunities.
“We believe there is more benefit to be gained by investing in areas like the West of England, Gloucestershire and Swindon/Wiltshire where there is a good track record of delivering private sector jobs growth.”
Business West managing director Phil Smith called for the funding to made available quickly and said by itself it would not spark growth.
“We fully support the projects that have been approved and the jobs that have been safeguarded are fundamentally important to this region.
“But the speed at which this funding is delivered will be fundamental to the success of the Regional Growth Fund. The projects supported by the fund must be started as soon as possible.
“The Regional Growth Fund on its own is not enough to stimulate business growth. In his Autumn Statement, the Chancellor must introduce further measures that will deliver confidence to businesses, in particular small and medium-sized companies. The Government must develop a strategy that encourages infrastructure development, reduces red tape and provides additional trade finance support to help firms export. Only then will companies have the confidence to expand, invest and create jobs, and get the UK’s recovery back on track.”
One regional winner of growth fund cash has remained unnamed for commercial reasons.
