Member Article

£120m for North East in RGF third round

The North East has been allocated £120m in the third round of the Regional Growth Fund, creating or safeguarding an estimated 30,340 jobs.

The money will be shared between a total of 25 projects and one programme throughout the region, covering manufacturing, energy and training needs.It is hoped the funding will facilitate a further £878m of private sector investment within 10 years.

Included in the projects are Komatsu’s proposed expansion of an R&D centre; expanded manufacturing capabilitIes for SCM Pharma; and expansion of the Barbour factory in Jarrow.

North East Chamber of Commerce Director of Policy, Ross Smith, said: “It is fantastic to see a continuation of North East business’ success at securing Regional Growth funding. The number of projects being approved represents a clear demonstration that we have the quality businesses required to draw down this kind of high value investment.

“It is particularly pleasing to see this important funding spread across a range of well-established, innovative companies, which gives confidence that a high proportion of this investment will come to fruition.

“What we now require is clarity from the Government over the future direction of RGF and other measures to support businesses investment in the North East.”

Over £70m of the money has been awarded to Tees Valley projects, safeguarding an estimated 4,000 jobs.

Stephen Catchpole, managing director of Tees Valley Unlimited said: “We are proud that the LEP, our partners and our local companies have been recognised by the government for their excellence, their innovation and their ambition for growth.

“11 successful projects will see the continued advancement of the chemical, renewable, advanced manufacturing and logistics industries demonstrating an appreciation of the skill and potential here on our doorstep.

“Two programme bids will give small and medium sized companies the chance to benefit from Regional Growth Fund, further facilitating growth across the supply chain and into global markets.”

The two projects referred to are ‘Contract Catalyst’, a £10m programme providing finance for warranty bonds for Tees Valley companies looking to bid on large contracts; and ‘Lets Grow’ a joint venture between UNW, Business & Enterprise Group and Trinity Mirror North East, offering grants to North East companies with the potential to create 2,000 jobs.

Stephen added: “Today’s announcement reflects the Government’s confidence in Tees Valley and the ability to achieve our ambitions of diversifying and growing the local economy, enlarging our industrial foundations and capabilities, and paving the way to long-term economic sustainability and prosperity.”

This was posted in Bdaily's Members' News section by Tom Keighley .