Local Economic Growth

Vince Cable Excerpts

Monday 31st October 2011 Written Statements

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The Government announced in April the outcome of the first round of the regional growth fund and at the same time launched round 2, bidding for which closed on 1 July.

I am pleased to announce today the outcome of that second round. Round 2 proved to be equally popular as round 1, attracting 492 bids for a total of £3.3 billion. The independent advisory panel, chaired by Lord Heseltine considered all these bids over the summer and made their recommendations to Ministers. Given the high number and quality of bids received, Ministers were only able to approve the very best bids that offered the greatest value for money and I am pleased to announce the outcome of this process today.

In total, the Government have made conditional allocations in this round, subject to due diligence, of the remaining £950 million. There are 119 successful bids announced today. Discussions are ongoing with a further 10 bidders about their projects. More importantly, the public investment in these projects and programmes is expected to generate nearly £6 billion of private sector funding. Overall these investments will directly support the creation or safeguarding more than 37,000 jobs. In addition, over a further 164,000 jobs in related supply chains and local economies will be created and safeguarded by the success of these projects and programme.

These conditional allocations of Government investment are supporting dynamic and innovative projects and programmes that will generate new jobs the length and breadth of England. In round 1, the RGF elicited a 5:1 ratio of private sector investment. In round 2 this has increased to 6:1. The increased proportion of private sector leverage in this round is a clear demonstration of how the challenge of the regional growth fund has acted as a catalyst for the private sector to invest in sustainable and balanced growth.

The successful bids will now be subject to a due diligence process, as with round 1 bids. These due diligence checks establish whether the Government are confident that the organisations awarded conditional offers are able to deliver on the proposals in their bid. A list of the successful bids is attached to this statement, a copy of which has been placed in the Libraries of both Houses and is also available from the BIS website at: www.bis.gov.uk.

The Government remain wholly committed to our agenda of generating growth and I am pleased that today’s announcement takes us further towards our goal of delivering a stable, well-balanced economy that creates sustainable private sector jobs and strengthens communities.

Successful bids list from Round 2

Note—Although 119 bids have been successful the list below includes beneficiaries who were part of a package bid (a bid with two or more beneficiaries). Furthermore, a small number of bids have not been included in the list due to, for example, commercial sensitivities. Details on these bids will be made available after due diligence.

East Midlands and South East Midlands: 1,400 direct jobs, 7,800 indirect jobs.

Druck Limited

University of Leicester

JC Bamford Excavators Ltd

Derby City

Usha Martin UK Limited

Federal-Mogul Friction Products Limited

Disley Tissue Ltd

North East: 8,500 direct jobs, 17,000 indirect jobs.

Process Technologies Division of Johnson Matthey PLC

Tioxide Europe Limited

Fine Industries Limited

Wellstream International Ltd

Cummins

Eutechnyx Limited

AKS Precision Ball Europe Limited

Darchem Engineering Limited

Kromek Limited

Dyer Engineering

Raisco Limited

Hiatco Ltd

Bignall Lubritec Ltd

BLS Electronics Ltd

Permoid

Carlton & Co

Tinsley Special Products Limited

Vantec Europe Limited

Able UK Limited

PD Teesport Limited

Zegen (Wilton) Limited

TeraVerdae BioWorks Ltd

Northern Pinetree Trust

Northeast of England Process Industry Cluster Limited (NEPIC)

Rettig UK

Aesica Pharmaceuticals Limited

Piramal Healthcare UK Ltd

Shasun Pharma Solutions Ltd

Precision Hydraulic Cylinders (UK) Ltd

International Pipeline Products Limited

Greencroft Bottling Company Limited

Propeller (GB) Ltd

Jarrow Brewery

Omega North East Ltd

Hydram Engineering Ltd

HE Woolley Ltd. (The Company)

John Harrison (Stockton) Limited

Pearson-Harper Ltd

Mediaworks UK LTD

Responsive Engineering Group Limited

Newcastle University

Gateshead College

Riverside Flooring LTD

Calsonic Kansei Sunderland Limited

Unipres (UK) Limited

ThyssenKrupp Tallent Limited

Heerema Hartlepool Limited

TRW Systems Ltd—Peterlee

Narec Development Services Limited (NDSL)

North West: 7,800 direct jobs, 39,500 indirect jobs.

University of Liverpool

Harpscreen(GB) Ltd

Pirelli Tyres Ltd

Phoenix Court Blackburn Limited

Gilbert Gilkes and Gordon Limited (“Gilkes”)

Crown Speciality Packaging UK Ltd

Redx Pharma Ltd

Double R Controls Limited

C&C Baseline Ltd

Standish Engineering Ltd

Ronfell

Double R Controls Ltd

North West Aerospace Alliance

Sefton Council

Eldonians Group Limited,

Energy Coast West Cumbria Ltd

The Listen Media Company LTD

The Greater Manchester LEP

Siemens plc

Diodes Zetex Semiconductors Ltd

Ferguson Polycom Limited

Salford City Council

Tameside Metropolitan Borough Council (“TMBC”)

Economic Solutions Ltd

Pochin Developments Limited

Keepmoat Homes Ltd

Regenerate Pennine Lancashire Limited

Lucite International UK Ltd

Bentley Motors

DI UK

HMG Paints Ltd

Burnley BC

Pilkington United Kingdom Limited

Getrag Ford Transmissions

South East: 7,400 direct jobs, 22,300 indirect jobs.

Portsmouth Naval Base Property Trust

Solent Local Enterprise Partnership

Southampton City Council

The East Kent districts of Canterbury, Dover, Shepway and Thanet

Vestas Technology UK Ltd,

Luton Borough Council

Lotus Cars Ltd

South West: 5,300 direct jobs, 17,600 indirect jobs

Universal Engineering

Mulberry Company (design) Ltd

DTR VMS Ltd

Airbus Operations Ltd

Geothermal Engineering Ltd

The Cornwall and the Isles of Scilly LEP

City of Bristol College

North Somerset Council

West Midlands: 3,900 direct jobs, 29,800 indirect jobs.

LNX Distribution Limited

Zytek Automotive Ltd

Aeromet International Plc

Alamo Manufacturing Services (UK) Limited

Herefordshire Council

Moorland & City Railways Ltd.

Sunsolar Energy Limited

Birmingham Post

Caparo Precision Strip

Angle Ring Holdings Limited

Thomas Dudley Limited

NDC Polythenes Ltd

Pargat & Co Limited

Stoke-on-Trent Regeneration Ltd

Hinckley & Bosworth Borough Council

Advanced Engineering Supply Chain

Steelite International plc

Ceram Research Ltd

Trac Group Limited

Yorkshire & Humber: 3,000 direct jobs, 13,700 indirect jobs.

SEW Eurodrive UK

Cummins Turbo Technologies

Surgical Innovations Ltd

BOC Ltd

East Riding of Yorkshire Council

University of Sheffield—AMRC

Sirius Minerals, Plc

Leeds City Region

North Lincolnshire Council

Wakefield Council

City of Bradford MDC

Sheffield Forgemasters International Limited

Stainless Plating Limited

T&N Plastics Limited

600 UK Ltd

RoadTankers Northern Ltd

Heights Ltd

Hindle

VTL (Europe) Ltd

i-plas Products Ltd

Halifax Rack and Screw Cutting Co Ltd

Treves UK LTD

Severn Unival Ltd

Other bids—national: 200 direct jobs, 16,500 indirect jobs

Fredericks Foundation

VisitEngland

Creative England

Santander UK plc