Heseltine panel to select funding winners

At least 48 schemes based in the Leeds city region have been submitted for funding from the regional growth fund, the Government’s finance stream to boost economies of regions outside London and the south east.

In the Sheffield city region, the business and council-led local enterprise partnership (LEP) is supporting eight bids for at least £15m from the fund, the first round of which was heavily over-subscribed leaving dozens of Yorkshire bidders disappointed.

The bids, now being considered by a panel led by former Tory cabinet Minister Michael Heseltine, have the potential to create thousands of jobs in the region as public sector jobs face being axed due to spending cuts.

Details have been revealed as Ministers are today expected to outline plans for the future of millions of pounds worth of assets – including key regeneration sites such as Leeds’ Tower Works and Bradford’s former Odeon Cinema – owned by development agency Yorkshire Forward, which is being abolished.

The Government is still refusing to hand them to councils or LEPs, but Ministers are expected to approve them being passed to the Homes and Communities Agency quango in a “stewardship” model which will see councils being able to influence them in the future.

The deadline for the second round of regional growth fund bids closed last Friday, and Leeds city region LEP has revealed it bid for £15m of funding for 19 projects which have the potential to create 3,000 jobs.

It said the funding – which includes 17 smaller projects based around advanced manufacturing – would pull in another £78m of private investment.

Another 29 projects have been endorsed by the LEP including infrastructure work to restart the regeneration of Bradford city centre, a green business growth fund and transport schemes such as improvements to Wakefield’s Kirkgate Station, once dubbed the “worst station in Britain”.

Neil Mclean, chairman of Leeds city region LEP, said: “We have a fantastic offer in the city region and we have worked hard to ensure that our bid is strong and reflects both the economic challenges and the opportunities this city region has to offer.”

Meanwhile Sheffield city region LEP has put forward two bids of its own, including an employment growth programme to help cash-starved small and medium sized firms expand and funding for start-up digital companies with high growth potential.

Six others are supported by the LEP, including £3.3m to establish an “advanced manufacturing growth hub” at Waverley, £8.5m for Finance Yorkshire to help start-ups and small and medium sized firms, £5.7m for a leisure development dubbed Visions of China at Rother Valley Country Park, £1.1m for the regeneration of Chesterfield’s Waterside, £1.1m to develop business space at Markham Vale and £4m to support retail and construction projects in the Barnsley Dearne Valley.

James Newman, chairman of the Sheffield city region LEP, said: “We invited submissions which could demonstrate a significant contribution to the LEP’s objectives and priorities for the city region and that, crucially, would contribute to economic growth and the creation of jobs and private sector investment.

“The LEP is delighted to offer its support to this clear and focused group of project and programme submissions to the regional growth fund, which we hope will meet with Government’s approval so as to lever investment into the city region.”

The first round of the fund saw £450m handed out, with seven Yorkshire bids sharing £47m.