Daily News

Daily News in Association with NDS

Denham: £50m to help councils with economic recovery

An extra £50m is being given to councils to help them make big strides toward economic recovery in their local area, announced Communities Secretary John Denham today.

The funding is being allocated to all areas of the country from the Local Authority Business Growth Incentives (LABGI) scheme that rewards councils which successfully promote local growth.

John Denham is clear that vital public sector support at this time can lessen the impact for struggling families and businesses. He wants to see councils use this grant to help small and new businesses in hard hit areas who often need extra support to get through the tougher times so they can hit the ground running as economic growth picks up.

Among the recipients North East Lincolnshire Council will get will get over £160,000 more. Already they have used it to help small businesses and local employers in Grimsby bounce back from the recession with business and renovation grants and a bus service to reach the local business park.

Bristol will get over £400,000 and has already used £1m to create an apprenticeship scheme with the university, deliver Real Help Now Government schemes and a jobs bus. LABGI has helped new businesses through the Yeovil Information Centre which provides affordable office space. In Aylesbury Vale, it funded free parking to encourage shoppers to support local business.

Last July, the scheme was re-launched with a similar £50m grant. Today's announcement builds on that and takes the total LABGI funding since 2005 over £1bn, on top of normal Government grants.

Government action through Real Help Now has supported many families and businesses. It is also giving wider support including free business health checks, discounted rate bills for small businesses, tax payment deferrals, capital loans or help with bank loans for business growth, and a 10 day Government payment promise.

Mr. Denham said

"Building economic recovery is the Government's top priority and we firmly believe in the decisive leadership role councils have to play. Strong, vibrant, decisive local government is an essential part of our plans to promote growth and cut unemployment while rebuilding the public finances.

We put the public sector in the lead while the private sector was struggling, spending and investing to lessen the impact on individuals, businesses and communities. We are giving councils up and down the country a further £50m to support small and new businesses in hard hit areas that might need a little jump start to get up and running again.

"Local councils, and councillors, with their unique democratic mandate, are best placed to provide financial support and local services that are responsive to the pressures being felt by families and businesses in local areas.

"Through our Real Help Now plan, we have committed a billion pounds to create more than 150 000 jobs and guaranteed everyone under the age of 25 a job, training or work experience if they are out of work for over six months and given struggling small businesses financial support through our billion pound Enterprise Finance Guarantee and tax payment deferrals."