‘Fur coat and no knickers’ jibe over investment

Penistone and Stocksbridge MP Angela Smith led Labour criticism of the Government’s £1.4bn Regional Growth Fund yesterday, saying it was too little and too slow to aid the region’s economy.

But she was accused of “doom-mongering” and “negativity” by Tory MP for Colne Valley Jason McCartney after 24 Yorkshire firms benefited from the final round of grants from the fund which were announced on Monday.

Although the fund, the Government’s flagship policy for pumping money into creating private sector jobs in parts of the country heavily dependent on the public sector, has now been fully committed, Business Minister Mark Prisk has held open the possibility that more money could be found.

He said there were “no specific plans” to extend the fund, which promises to lever in six times as much private investment, but said: “I wouldn’t necessarily rule it in or out.”

A second round of funding this week saw £143m for Yorkshire firms, including a loan of up to £36m for steel firm Sheffield Forgemasters, with 17,000 jobs saved or created in the region.

But Ms Smith criticised the “bureaucracy” of the fund with slow legal checks leaving firms waiting months for promised cash and said the amount was far smaller than spent by Labour.

“The Government use a lot of warm words, but deliver very little when it comes to economic investment. There is a really good northern phrase to describe a person who appears to have everything, but who in fact has nothing much to offer: All fur coat and no knickers.

“I have to say that that seems a rather good description of the Government’s approach to regional growth,” she said.

But Mr McCartney said the fund was just one part of a “package for growth” along with enterprise zones, Local Enterprise Partnerships and an increase in apprenticeships.