£10m to help firms thrive in doldrums
Sep 3 2008 by Peter McCusker, The Journal
NORTH EAST businesses are to be given support worth £10m to help them deal with the economic slowdown.
One NorthEast has unveiled a package of measures as ministers came to the region to meet business leaders today.
The new investment comprises of:
1. A £2.5m boost to the Selective Finance for Investment grant which helps small and medium-sized firms expand, create new jobs and safeguard existing posts.
2. An additional £6.25m into the North East Investment and Co-Investment Funds to give vital access to finance for growing firms.
3. A further £250,000 to extend the Company Rescue Pathfinder programme to help firms struggling with tax and credit issues.
4. An extra £1m into the innovative Energy Resource Efficiency scheme to help firms cut rising fuel bills.
A ONE spokesman said: “The Government and One NorthEast are launching a comprehensive regional response to current economic challenges.
“The new £10m funding package will help bolster firms’ growth plans and create and protect jobs.”
One NorthEast chief executive Alan Clarke, financial secretary to the Treasury Jane Kennedy and minister for the North East Nick Brown will unveil the package at the headquarters of successful oil pipeline company Wellstream International in Walker, Newcastle, this morning.
North East Chamber of Commerce policy director Andrew Sugden said the chamber wanted several measures to help firms through the downturn.
He said: “We would like to see investment for innovation, which is absolutely crucial at this time. We would appreciate investment in helping businesses access finance.
“We would also like to see a specific package for medium-sized businesses, who traditionally use debt finance and will find that harder to come by in the current climate.”
Mr Sugden also called for re-introduction of empty property rate relief on commercial property.
