Member Article

NE business growth encouraged by £24m

All 25 North East local authorities are to receive funding for encouraging business growth, it was announced yesterday. The Local Authority Business Growth Incentive Scheme (LABGI) sees councils who have encouraged business growth in their area receiving a reward from Government. This is the second year of a three year scheme which expects to see up to £1b allocated to local authorities by 2007/08. The scheme encourages local authorities to build partnerships with local business and promote long-term economic sustainability in their areas.

Phil Woolas, Local Government Minister, said: “We’re delighted to announce the grant payments for the second year of this scheme. LABGI provides substantial rewards for local authorities who encourage business growth in their areas. “Government is committed to devolving further power to local authorities, which will in part help them encourage business growth in their areas. Councils should use their role as place shapers to encourage inward investment in their communities and this grant is a boost to that work.”

John Healey MP, Financial Secretary to the Treasury, said: “If we are to draw on the full economic potential of our country, promoting long-term growth, enterprise and jobs, as well as tackling the disparities in economic performance between and within the regions and nations of the UK, local authorities have a vital role. “LABGI ensures every local authority has a direct financial incentive and reward to do more to promote enterprise, employment and the growth of local businesses.”

Details of the grant payments to individual authorities, and of the LABGI scheme, can be found on the Communities and Local Government website.

This was posted in Bdaily's Members' News section by Ruth Mitchell .