Hundreds bid for next round of Regional Growth Fund cash

The second round of bids are competing for a share of £950m from the Fund, which is dually aimed at promoting private sector enterprise and growth, and supporting regions dependent on the public sector. The Department revealed the highest number of bids came from the North West of England, where the region’s 140 submissions represented 28% of all bids received by BIS in the second round.

 

The bids, totalling £3.3bn, are in the process of being assessed by the Lord Heseltine-chaired Independent Advisory Board, which will make recommendations to a board of ministers headed by deputy prime minister Nick Clegg. Successful bidders are expected to be announced this autumn.

 

More than two-thirds of all bids are bidding for between £1m and £5m.

 

According to BIS, the allocation of funding each successful proposal will receive will be “the minimum amount the proposal needs to get off the ground,” with every bid also demonstrating additional private sources of funding.

 

The first round of bids back in April saw 50 companies out of 450 initial submissions share £450m from the Fund.

 

Nick Clegg said: “This vital regional fund uses government investment and multiplies it to give a real boost to local businesses. Round one is already helping local economies across the country and has attracted £2.5 billion of private sector investment. This will directly create or protect over 27,000 jobs, and secure around a further 100,000 jobs on related supply chains and in local economies.

 

He added: “We welcome the bids received for the second round, and hope we can do even more this time.”

 

Lord Heseltine said the Independent Advisory Board and BIS had been “overwhelmed” by the sheer volume of bids submitted: “There is clearly a hunger for public support which will allow new and exciting projects to deliver jobs and growth in their local communities to get off the ground, and I’m pleased to see so many people wanting to be a part of this. We now face the difficult task of assessing each of these bids; we have a busy summer ahead of us!”