THE Government’s new £1 billion Regional Growth Fund is “disappointing” for businesses following the £1.5 billion cuts made to England’s regional development agencies, York business leaders have said.
Deputy Prime Minister Nick Clegg launched the Regional Growth Fund in Bradford on Tuesday after the coalition Government’s first cabinet meeting outside London, where he also confirmed regional development agencies would be replaced by local enterprise partnerships.
Mr Clegg said the fund was to help areas and communities most dependent on public sector employment, which will be most affected by public spending cuts. Both private bodies and public-private partnerships will be able to bid for a share of the £1 billion during the two years 2001/2012 to 2012/2013.
Hayley Johnson, of Leeds, York and North Yorkshire Chamber of Commerce, said: “It is disappointing that the Regional Growth Fund has been slashed in comparison with that of the RDAs. This is a big cut to business and there will be significantly less resources to support private sector growth.”
York’s £1 billion mixed use development, York Central, has been hit by the £40.27 million cuts that Yorkshire Forward had to make as its contribution to the £1.5 billion savings.
Ms Johnson said: “Public spending cuts risk hitting the north disproportionately to the south and we need to ensure that any public funding is channelled to the projects that deliver the greatest return on investment and bring the most benefit to Yorkshire’s businesses.
“Tackling the deficit is a priority, but we also need a strategy for growth and the Government needs to remember the vital role that businesses play in driving economic recovery.”
Mr Clegg said local enterprise partnerships would tackle issues including planning and housing, local transport and infrastructure, employment, enterprise and supporting business start-ups. Other roles currently carried out by the RDAs, such as inward investment, sector leadership, business support, innovation and access to finance, would be led nationally.
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