YORK is set to be among a group of seven Yorkshire councils launching a multimillion-pound fund aimed at kick-starting the county’s economy.

The authorities are initially expected to put almost £20 million between them into a pot aimed at unlocking a further £60 million from the private sector.

City of York Council and its counterparts in Bradford, Calderdale, Harrogate, Kirklees, Leeds and Wakefield are in line to be involved under the Leeds City Region banner.

The fund will be used to support schemes which were once confident of securing loans but are now struggling to secure finance because organisations are more reluctant to lend.

Tony Reeves, Bradford Council’s chief executive and the Leeds City Region’s lead chief executive, said the first phase of the “revolving investment fund” was expected to be launched shortly, followed by a second phase later this year.

It is designed to offer loans on a commercial basis, with returns going back into the fund so it can grow and support more projects in the future.

Private-sector partners will be expected to invest £3 for every £1 councils contribute, with projects having to show they will create new jobs or benefit Yorkshire’s economy.