Govt launches new regional business fund

Date: 30th June 2010

Small businesses around the UK could be among those to benefit from the launch of a new regional fund.

The government has announced that it is to invest GBP1 billion to help regional businesses in a bid to ease the impact of public sector spending cuts in areas most affected.

It follows other government measures aimed at boosting employment, including the waiving of National Insurance contributions (NICs) from small start-up firms in certain regions of the UK.

Commenting on the new fund, deputy prime minister Nick Clegg said: "The Regional Growth Fund will create the conditions for growth and enterprise in the regions by stimulating investment and create sustainable private sector jobs.

"Alongside our commitment to waive some employment taxes for new businesses starting up in targeted regions of the country, this fund can make a real difference to companies during difficult times."

Earlier this month, the government announced that new businesses in Scotland, Wales, Northern Ireland, the north-east, Yorkshire and the Humber, the north-west, the East Midlands, the West Midlands and the south-west will be able to save up to GBP50,000 in NICs through its new tax scheme.

Posted by Thomas Fletcher