Growth deals: firing up local economies
As part of its long-term economic plan to secure Britain’s future, the Government today is agreeing a series of Growth Deals with businesses and local authorities across England.
The Prime Minister and Deputy Prime Minister will announce the first instalment of plans to invest at least £12 billion in local economies in a series of ‘Growth Deals’.
The money will go towards providing support for local businesses to train young people, create thousands of new jobs, build thousands of new homes and start hundreds of infrastructure projects; including transport improvements and superfast broadband networks.
Today, the first £6 billion of local projects agreed as the first wave of Growth Deals are being announced. This includes the complete allocation of £2 billion from the Local Growth Fund for 2015-16, and, because the quality of the proposals was so high, in some cases commitments are being given for following years for important long-term projects so they can get underway.
In addition, discussions with Local Enterprise Partnerships will continue, to prepare for future negotiations on the next round of Growth Deals to build on the momentum now established.
Growth Deals are a revolution in the way our economy is run. For the first time ever, housing, infrastructure and other funding is being brought together in a single pot, and put directly into the hands of local authorities and businesses to spend the way they know best.
Projects beginning in 2015/16 are expected to be matched by local investments worth around twice the contribution from Central Government.
Across the country they are expected to lead to work on over 150 roads, 150 housing developments, 20 stations, as well as to provide small business support services in every part of England and significant investment in skills training, as well as work to improve educational attainment and to get more people from welfare to work.
The Prime Minister said: “Growth Deals are a crucial part of our long-term plan to secure Britain’s future. For too long our economy has been too London-focused and too centralised. Growth Deals will help change all that. They are about firing up our great cities, towns and counties so they can become powerhouses. By trusting local people, backing business and investing in infrastructure, skills and housing, we can create thousands of new jobs. And that means more economic security, peace of mind and a brighter future for hardworking people across the country.”
The Deputy Prime Minister, who chairs the Local Growth Cabinet Committee said: “We are ending a culture of Whitehall knows best. Decisions over spending on infrastructure, business support and housing are being made at a truly local level.
“It will help end our over-reliance on the banks and the City of London, and generate growth, jobs, and ambition in towns and cities all across England.
“Growth Deals will create thousands of jobs, provide incredible new training opportunities for young people, build thousands of new homes and improve transport links across the country for people and their families; building a stronger economy and a fairer society.
“We’re placing the power and money in the hands of the people who know how to spend it best, making a real difference to local communities.”
Greg Clark, Minister for Cities, said: “This is a landmark day for Britain’s local economies. National growth is the sum of local growth. For Britain to prosper every part of the country needs to fulfil its potential. No two places are the same and the people who live, work and do business in each place know best what their area needs to do well. Today is the day when we back local leaders to create jobs and prosperity in their area.
“These Growth Deals build on the success of our City Deals. I look forward to meeting with all LEPs over the next few weeks to negotiate the next instalment of Growth Deals building on this momentum.”
