Funding falls short after flurry of bids

Nearly 450 bids were submitted to the Government's flagship Regional Growth Fund by last Friday's deadline, seeking 2bn in funding.

That leaves many of the bidders facing rejection and the 1.4bn will have to be spread over three years.

Officials were deluged with a flood of last-minute bids, given only four had arrived by the start of last week.

Speaking at a summit to promote manufacturing yesterday, Deputy Prime Minister Nick Clegg said: "Now is the moment to rediscover our capacity for invention and design. It is also vital to support growth across the country by decentralising power to local areas to promote growth, and investing to support the transition to private sector recovery.

"There are clearly lots of good ideas out there on how to create jobs and growth and I look forward to reviewing the bids we have received – nearly 450 - for the first round of the Regional Growth Fund."

The fund was set up to back projects outside London and the South-East which will create jobs, as part of the Government's drive to create a more balanced economy.

Bids will be assessed by a panel chaired by former Tory cabinet minister Lord Heseltine, which will advise ministers.