Minister hints at more cash for jobs in Yorkshire

Business Minister Mark Prisk said Ministers were “always looking at options” and refused to rule out increasing the £1.4bn Regional Growth Fund, which has been massively over-subscribed and is targeted at areas which have been heavily reliant on public sector jobs.

Seven companies and councils from Yorkshire and Humber have already successfully bid for £41m of money from the fund, supporting projects which could create or safeguard 10,000 jobs – either directly or indirectly – including housing developments, an airport link road in Doncaster and the expansion of Haribo’s sweet factory in West Yorkshire.

Legal checks mean none of the money has yet been handed over but Ministers are preparing to give out the first cheque soon. Another 49 bidders from the region were left disappointed after having applications rejected.

Cabinet Ministers are currently deciding which of 492 second round bids will be successful but that is likely to exhaust the fund, prompting calls for it to be expanded as the Government desperately searches for ways to get the economy growing again.

Asked whether the Government could add money to the fund, Mr Prisk said: “I think we’re trying to get these [first round bids] up and running. We’re always looking at options. Any decision on that will be made by the Chancellor in the Autumn Statement.”

Chancellor George Osborne will present his Autumn Statement next month alongside a Growth Review, in which Ministers have promised further measures to boost the economy.