Government’s regional growth fund yet to hand out any cash

Fund for stimulating economy in areas at risk of being affected by cuts has not given any cash to approved companies The government’s frustration at the failure to push ahead with infrastructure projects to boost jobs has been underlined after it emerged that the £1.5bn regional growth fund still has not handed out any cash 15 months after being announced. The fund is aimed at stimulating the economy in “areas and communities at risk of being particularly affected by public spending cuts”. The revelation came from a freedom of information request to see copies of all bids approved for funding under the scheme to date. Philippa Lloyd, the director of economic development at the Department for Business, Innovation and Skills, said: “The successful bids are currently undergoing due diligence, apart from one which has completed the due diligence and has been provided with a final offer letter, before a final offer of funds can be made.” The letter was released on the Liberal Conspiracy website . The fund was announced in June 2010, when the deputy prime minister, Nick Clegg, said : “This fund can make a real difference to companies during difficult times.” The communities secretary, Eric Pickles, also stressed the urgency of getting the fund under way. Pickles said he did not want to “strangle business with red tape” and that “urgent action” was needed to “rebuild and rebalance local economies so that new businesses and economic opportunities spread across the country”. In a speech last week, Clegg admitted that more needed to be done to get the money to successful bids. But he praised the growth fund, saying: “For every £1 of government investment, the private sector is putting in £5 to create thousands of new jobs targeted at areas too dependent on the public sector.” He added that he had asked Lord Heseltine to oversee a second round of bids for the fund. “Since we came in to government, ministers have been expected to make savings. Now they’re under the same pressure to spend the money they’ve got,” he said. The shadow business secretary, John Denham, commented at the slowness of the fund’s distributions, saying: “It is bad enough cutting regional growth funding by two thirds, but not paying it out in time to help businesses grow is even worse. “Clegg and [the business secretary] Vince Cable have spent all week talking tough about ensuring investment isn’t delayed, but this shows just how empty their words are. “It is an embarrassment that, 15 months after trumpeting the regional growth fund as a vital part of their growth strategy, not a single penny has left their pockets.” Economic policy Nick Clegg Eric Pickles Liberal-Conservative coalition John Denham Labour Patrick Wintour guardian.co.uk

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