04 September 2008
£200m support for Northwest businesses as tough
economic climate continues to bite
- £140m VCLF Fund to be launched in the new year
- £40m package of support to stimulate investment in priority
skills development to commence in 2009
- New £10m High-Growth business support on the way
- £4m Innovation Voucher Scheme to help 1,000 businesses
Today the Northwest Regional
Development Agency (NWDA) welcomed Treasury Ministers the
Rt Hon Yvette Cooper MP and the Rt Hon Jane Kennedy MP, Regional
Minister Beverley Hughes, MP’s and 100 business leaders to an event
aimed at understanding business concerns and highlighting the
support available to Northwest businesses in these challenging
times.
The event marked the launch of a new document
drawn up by the Government and the NWDA for discussion with
business, local authorities, housing groups, communities and the
voluntary sector. It sets out how the Northwest economy has changed
and restructured in recent years and the main challenges and
opportunities it faces in the period ahead. It also sets out how
the Government and the NWDA will work with other agencies across
the Northwest to continue to help Northwest businesses and families
through the more challenging times ahead and continue to enable the
region to deliver its long term goals.
At the launch Ministers and the Chairman of
the NWDA highlighted five such initiatives that will provide
support to Northwest businesses in the coming years:
- £140m
Venture Capital Loan Fund (VCLF) consisting of £70m of European
funding will be one of the first initiatives announced
by the £521m, 2007-13 European Regional Development Fund (ERDF)
Programme in 2009.
- £40m
package to stimulate business investment in skills
- New £10m
High-Growth business support programme
- £4m
Innovation Voucher Scheme
- Improved
Access to Finance
Yvette Cooper MP, said:
“The Northwest economy, like every region across the world,
is being affected by the twin economic problems of the credit
crunch and the high oil and food prices. But unlike in
previous decades this region is now much stronger after years of
strong growth and rising employment, backed by sustained and
increasing government investment.
But we are determined that Government,
along with regional and local agencies, will work to ensure that
businesses and households get the support they need in these times
of uncertainty. Looking ahead, we will continue to make the
investment that has supported regional regeneration and growth in
the past, to ensure that growth continues well into the
future.”
VCLFs are a key instrument in European, UK and
regional policy for stimulating innovation, R&D and growth in
SMEs. The provision of equity and mezzanine funding is to
support small and medium sized businesses unable to raise finance
on the commercial market because of the equity gap. These Venture
Capital funds are designed to address a long-term structural
weakness in the provision of risk capital to small and medium sized
businesses by providing a source of funding which would otherwise
not be available.
This £140m fund, a priority project of the
ERDF 2007-13 programme, is now out to tender and will be ready to
take applications early in 2009. The fund will really make a
difference in plugging the finance gap, helping businesses to gain
access to finance to innovate, invest and grow, which in turn will
generate growth in the Northwest economy.
Steven Broomhead, Chief Executive of
the NWDA said: “Obviously businesses can access financial support
from a wide range of channels but what we are doing is
strengthening, to reflect changing business concerns. Businesses
are now telling us that access to finance is their number one
priority and we are making sure our services reflect that
need.”
The document also highlights that the NWDA is
preparing a £40m package of support to stimulate investment in
priority skills development. As the tough trading conditions
inevitably force businesses to cut-back on operational costs, the
Agency support continued investment in skills training. This
initiative will be developed to meet business needs over the months
ahead.
With the support and investment of the new
ERDF programme, the NWDA also aims to deliver a £10m programme of
support to help 1,000 high-growth, new and established businesses
in the Northwest. High growth companies are defined as either new
businesses that have the scope to grow to £0.5M in 3 years or
established SMEs that have the ambition and capability of achieving
a minimum of 20% per annum growth. The project aims to provide
intense coaching and support to businesses in the Northwest that
demonstrate this high growth potential. This initiative will be
ready to take applications later this year.
Beverley Hughes, MP, said: “I believe
the North West region is now more resilient and in better shape to
cope with more difficult economic times. Over the past decade, the
North West economy has enjoyed a period of unbroken
growth.
“During this time there has been a
significant structural shift in employment away from manufacturing
towards the hi-tech sectors including biotechnology, digital and
creative, chemical, aerospace and financial and business
services.
“This shift means the region’s economy
is very different than when it faced the economic downturn of the
1990’s.
“As Minister for the North West I
don’t underestimate the impact of changing economic circumstances
and as this document, and the measure outlined in it makes clear,
we are determined to work together to help business, people who
work with them families and communities. I am confident that
businesses that are innovative and invest in the skills of their
people will continue to have a bright future.
Steven added: “There are significant
initiatives in this document, some already in place that will help
support the long term success of Northwest businesses during and
after this challenging economic period.
And the little things can make a big
difference too. Prompt payment and cash-flow are serious issues for
businesses as they now, more than ever, need to keep a tight-ship
and rely on prompt payments so they can continue at a solid pace
without interruption. The 30 day payment target, already set, is
achievable and I would like to see all public sector partners
working hard to ensure this deadline in not exceeded.”
The NWDA has already recognised the need to
make access to finance easier. The Agency is setting up a new,
enhanced, Access to Finance service for businesses which will
be available next month via Business Link Northwest, as the primary
gateway for business support, which will diagnose business needs
for finance, provide SMEs with skills/expertise to secure private
funding and assist in brokering direct to the relevant finance
provider.
Other initiatives are also outlined in the
document including a forthcoming £4m Innovation Voucher Scheme that
will help over 1000 businesses to work with the Knowledge
Base, i.e. universities, on collaborative projects, plus ideas
for High-Growth support, a new business start-up programme and
other ideas for the business community to comment on.
The document also highlights the success of
Business Link Northwest (BLNW) after its first full year as a
regional service and promises to bolster this success by enhancing
the regional Business Link Northwest service even further in the
future. Already BLNW now has 50% more business brokers on the
ground compared to the 2006 service and is accepted as the single
point of access for Business support in the region with £18m a year
to help Northwest business to grow and succeed. All of which is
helping our businesses in the Northwest to ride-out the worst of
the ‘credit-crunch’.
ENDS
For further press information contact,
Neil Roscoe, Senior Press Officer on 01925 400232 or mobile 07980
713282 or neil.roscoe@nwda.co.uk
In the last financial year the NWDA has:
Created or safeguarded 17,749 new jobs in the
region, and helped 6,748 people to get a job;
Created or attracted 1,965 new businesses to
the region;
Helped 20,969 businesses to improve their
performance, and assisted 861 businesses to engage in new
collaborations with the UK knowledge database;
Attracted £489 million of investment to
regenerate deprived areas, 58% of it from the private sector;
Regenerated 291 hectares of brownfield land;
and
Helped 25,805 people in their skills
development, including 971 through the “Skills for Life” strategy
and 1,108 supported to achieve a level 2 qualification or its
equivalent.
The Northwest Regional
Development Agency (NWDA) leads the economic
development and regeneration of England's Northwest and is
responsible for:
- Supporting business growth and encouraging investment
- Matching skills provision to employer needs
- Creating the conditions for economic growth
- Connecting the region through effective transport and
communication infrastructure
- Promoting the region’s outstanding quality of life
For further information about the NWDA
and to view previous press releases visit us at www.nwda.co.uk/press