It has been announced that 15 Tees Valley applications to the Regional Growth Fund have been successful, attracting an estimated £200m private sector investment to the area.
While this is undoubtedly positive news for those organizations successful in attracting funding, there are sadly far more losers than winners as a result of this announcement with more than two thirds of applicants unsuccessful and more than 370 bids for funding rejected.
On top of the two thirds cut in funding for regional growth, the Government have now admitted there will be no third round of the Regional Growth Fund, with all the bids turned down now left in the lurch.
“Any investment in Tees Valley companies must be welcomed. I congratulate everyone who has been successful in getting past this stage in the process and hope that they can now complete the detailed work required to have their grants confirmed.
“Whilst the investment from the Regional Growth Fund is very welcome, it is but a fraction of the money that has been invested in recent years through the Regional Development Agency and central Government Departments. In the face of rising unemployment, rocketing inflation and thousands of young people not in employment, education or training, it is far too little to make the huge difference necessary to help turn our economy around. I only hope that the Government, led by the Chancellor, will recognise the need for substantially more hard cash to create jobs and stop the devastating rise in unemployment we’ve seen over recent months.”