Member Article

North East business cheer RGF success as GDP figures released

North East business leaders have commended the Regional Growth Fund for its role in creating over 6,000 jobs in the region, as national GDP growth is celebrated.

Following the publication of ONS statistics showing a 0.8% growth in national economic output between July and September, businesses have cheered positive statistics from the region.

Cabinet Office figures show the region has the third highest number of jobs created in Enterprise Zones at 507.

More than 13,000 private sector businesses have been created or established in the region since 2010.

NECC chief executive James Ramsbotham welcomed the positive news on RGF jobs but urged the Government to ramp up its backing of North East business.

He said: “The region has performed well in securing Regional Growth Fund allocation and this is down to well thought-out, ambitious projects submitted throughout the various bidding processes.

“To see so many jobs secured via this important funding stream is very much welcomed at a time when we’re seeing slow, but steady growth across the regional economy.”

He added: “The Government’s pledge to begin major investment in an ambitious infrastructure programme is a start and NECC will continue to lobby for more backing of North East business. We are optimistic that our regional economy has turned the corner, but we must remain focused on stimulating sustained growth and prosperity across the region.”

Stephen Catchpole, managing director at Tees Valley Unlimited, the Local Enterprise Partnership for the Tees Valley: “Regional Growth Fund has had a positive impact in the Tees Valley area. To date 13 private sector projects have started which will see some £300m invested in our local manufacturing supply chain.

“The Fund has allowed TVU to promote innovative projects including the Tees Valley Catalyst Fund which will help a number of companies to access new markets via finance for performance and warranty bonds.

“We are seeing a change in direction nationally towards a balanced economy based on industrial production and the sale of goods and that certainly plays to Tees Valley’s strengths.”

Paul Woolston, Chair of North East Local Enterprise Partnership, added: “In addition to examples of very strong profit growth in firms across all sectors there are clear signs of investor confidence improving in the North East. Examples of business and private investment and growth range from our largest manufacturers to university spin outs. For example, in the last fortnight Nissan has broken ground on the expansion of its plant to accommodate the production of the premium Infiniti range vehicle in Sunderland.

“Simultaneously two Durham University technology spin outs have reached key milestones: Kromek achieved its AIM listing with a public offering that secured its next stage of investment capital and Advanced Graphene Materials announced its intention to float on the same exchange. Great UK and North Eastern success stories that illustrate today’s GDP figures.”

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