Regional Growth Fund

Published Friday, March 6, 2015

This note examines the Regional Growth Fund, which is worth over £3.2 billion over the five years from 2011-12 to 2016-17. It is intended to promote the private sector in areas in England most at risk to public sector cuts.

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The RGF is worth over £3.2 billion over the five years from 2011-12 to 2016-17. It is intended to promote the private sector in areas in England most at risk to public sector cuts by providing financial support for private enterprises to leverage additional funding and create sustainable jobs.

The Government has announced successful bidders of the first four rounds of the Regional Growth Fund, allocating £2.9 billion. £450 million was awarded in the first round, £950 million in the second, £1.05 billion in the third and £506 million in the fourth.

Rounds 1 to 4 were open to both private and public sector organisations, while rounds 5 and 6 are only to the private sector.

Applications for Round 5 opened on 11 October and closed on 9 December 2013. A list of selected conditional offers were announced in April 2014, allocating a total of £306 million.

Round 6 opened in June 2014, allowing companies unable to apply for Round 5 funding an opportunity to bid. Applications closed in September 2014. A list of selected conditional offers were announced in February 2015, allocating a total of £297 million.

The DCLG have reported that the RGF has created or safeguarded 65,000 jobs in rounds 1 - 4, estimating the cost per net additional job at £52,300.

Commons Briefing papers SN05874

Author: Matthew Ward

Topics: Business support, Economic policy, Economic situation, Regeneration, Regional development agencies

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