Business leaders welcome £28.5m bid to boost York economy (From York Press)

Business leaders welcome £28.5m bid to boost York economy

2:40pm Sunday 5th February 2012 in Business news By Jennifer Bell, Crime reporter

BUSINESS leaders have welcomed plans for a new £28.5 million scheme designed to help boost York’s economy over the next five years.

City of York Council’s ruling Labour group announced this week that it wants to form an Economic Infrastructure Fund (EIF), focusing on transport schemes, extending free city-centre wi-fi, the Reinvigorate York initiative to give the city centre a facelift, supporting businesses, opening up job opportunities and preventing people falling into poverty.

The fund is among the group’s budget proposals for the next two years, and Peter Kay, who chairs York Economic Partnership, said: “Job creation is vital to replace those being lost through this recession.

“The proposed EIF could provide assistance for businesses which have difficulties accessing finances but have a good case for being supported. It is important this fund is properly managed and, where possible, repaid and recycled for further business growth.”

Susie Cawood, head of York and North Yorkshire Chamber of Commerce, said: “The Chamber supports development, expansion and investment in the city in order for our economy to grow and prosper, so we strongly support the council’s initiative.”

The EIF would be funded through the Government’s New Homes Bonus scheme and £20 million of borrowing. The budget proposals – aimed at saving £19.7 million over the next two years - also include a 2.9 per cent council tax rise in 2012/13, cuts to a string of services, the sale of the Beckfield Lane waste recycling centre and rises in car-parking charges and bereavement services fees.