Clegg promises jobs boost
Oct 31 2011
A government investment of £950 million will help create and safeguard more than 200,000 jobs
A government investment of £950 million will help create and safeguard more than 200,000 jobs across England, deputy prime minister Nick Clegg has announced.
The second round of the government’s £1.4 billion Regional Growth Fund (RGF) will support more than 100 bids from businesses and local partnerships with projects to expand their operations, create new jobs and attract private investment.
Of the 201,000 jobs created or protected, around 37,000 will be directly created jobs, and more than 164,000 will be in the supply chain. The government investment will support nearly £6 billion of private investment secured by the successful projects.
The RGF is a £1.4 billion fund which is designed to encourage enterprise, growth and jobs in the private sector and support areas and communities that are dependent on the public sector.
Clegg says, ‘I am delighted to be able to announce this boost to business, which will jump start growth and create jobs that last in the places that really need it.
‘People in the rest of Britain have been let down for far too long by governments in thrall to one Square Mile of it. The first pot of Regional Growth Fund money is already making a difference across the country – helping to rebalance our economy so that every region and sector benefits.’
Business secretary Vince Cable adds, ‘We need to be doing all we can to enable businesses and organisations to create much needed jobs and inject private investment into the economy.'
Confederation of British Industry deputy director-general Dr Neil Bentley says, ‘Medium-sized businesses have the greatest growth potential, but are often held back by difficulties accessing long-term finance for investment, so this funding will help them to grow and create jobs.
However, Bentley adds that the fund does not have the capacity to plug the finance gap. 'So the government needs to look at other funding options to help these firms grow, such as opening up bond markets to medium-sized businesses. We also want to see large companies encouraged to invest in medium ones by making equity investments tax deductible so that they are on a par with debt investments.’
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