News: Alliance raise issue of grants scheme cut
Firms in the Yorkshire and Humber stand to lose out on grants, worth £72m in the past, because of a Government decision to abolish the Grants for Business Investment (GBI) scheme.
The scheme, which helped local companies create and protect jobs in less prosperous areas, was quietly scrapped last year as part of the government's local growth white paper.
The issue has been raised by the Industrial Communities Alliance, the local authority association campaigning on behalf of councils in industrial areas.
Between 2004-2010, £428m of funding was made to English companies. In turn this helped create or protect 77,000 jobs.
Rotherham-based technology innovator for the speciality metals industry, Metalysis secured a £1.5m grant through the scheme in 2009. The grant is helping to create 90 highly skilled jobs as the Manvers company gears up to develop a pioneering semi-continuous plant to produce titanium and tantalum powders for worldwide markets.
Other Rotherham firms to secure funding through the scheme include Newburgh Engineering, Elite Tooling Ltd, PMS Diecasting Ltd, Macalloy and Comis Orthopaedics.
Chair of the Industrial Communities Alliance, Cllr Eion Watts, said: "At a time when businesses in our areas are struggling, the loss of this vital tool has come as a great blow.
"Since the 1970s successive governments have seen the need to create and protect jobs in the less prosperous regions.
"We, in the Alliance, believe the Government should revisit their decision to abolish this scheme. It is a vital piece of kit in the regeneration toolbox, and firms in our areas will suffer without it."
Regional funding is set to come forward through the government's £1.4bn Regional Growth Fund that will be used to encourage private sector enterprise, create sustainable private sector jobs and help places currently reliant upon the public sector make the transition to sustainable private sector led growth.
Industrial Communities Alliance website
The scheme, which helped local companies create and protect jobs in less prosperous areas, was quietly scrapped last year as part of the government's local growth white paper.
The issue has been raised by the Industrial Communities Alliance, the local authority association campaigning on behalf of councils in industrial areas.
Between 2004-2010, £428m of funding was made to English companies. In turn this helped create or protect 77,000 jobs.
Rotherham-based technology innovator for the speciality metals industry, Metalysis secured a £1.5m grant through the scheme in 2009. The grant is helping to create 90 highly skilled jobs as the Manvers company gears up to develop a pioneering semi-continuous plant to produce titanium and tantalum powders for worldwide markets.
Other Rotherham firms to secure funding through the scheme include Newburgh Engineering, Elite Tooling Ltd, PMS Diecasting Ltd, Macalloy and Comis Orthopaedics.
Chair of the Industrial Communities Alliance, Cllr Eion Watts, said: "At a time when businesses in our areas are struggling, the loss of this vital tool has come as a great blow.
"Since the 1970s successive governments have seen the need to create and protect jobs in the less prosperous regions.
"We, in the Alliance, believe the Government should revisit their decision to abolish this scheme. It is a vital piece of kit in the regeneration toolbox, and firms in our areas will suffer without it."
Regional funding is set to come forward through the government's £1.4bn Regional Growth Fund that will be used to encourage private sector enterprise, create sustainable private sector jobs and help places currently reliant upon the public sector make the transition to sustainable private sector led growth.
Industrial Communities Alliance website
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Alliance raise issue of grants scheme helped local companies create and protect jobs in less prosperous areas, was quietly scrapped last year as part of the government's local growth white paper.
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