Partner Article

NE businesses most likely to receive business funding

Businesses in the North East are more likely to receive funding for expansion and job creation from the Regional Growth Fund than in any other part of the country.

County Durham, Hartlepool and Middlesbrough are three of the top locations for successful applications to the scheme which offers private sector businesses and public/private partnerships a minimum £1 million grant to expand or relocate to areas meeting certain criteria.

These include areas with high unemployment, a higher percentage of people employed in the public sector, relatively low numbers of private sector business per capita and a low rate of private sector job growth.

Research by national commercial property firm Lambert Smith Hampton compiled an index of all 326 local and metropolitan districts, unitary authorities and London boroughs which are eligible for funding.

Darron Barker, Head of Office at Lambert Smith Hampton’s North East team said: “The Regional Growth Fund is a significant opportunity for the identified North East centres and we encourage businesses to step forward with proposals.

“With banks currently offering little support to companies,this direct source of lending is important and will encourage companies in the key centres to look at capital investment in upgrading and expanding buildings.*

Traditionally finding regimes have favoured businesses in the North East and Midlands, but the firm have also found that many businesses in the South also meet the Government’s criteria. They are now encouraging them to apply as the distribution is likely to be much wider than previous grant regimes.

Tom Leahy, research associate director at Lambert Smith Hampton added: “ The Government’s hope is that businesses will be encouraged to expand in areas where there has been a loss of public sector jobs.

“With the news that the UK is back in recession, the expectation is that these grants will provide some of the impetus required to increase demand, kick-start development and push the UK*s economy back into positive territory.”

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