Gordon Marsden MP, Labour’s Shadow Business Minister, responding to Vince Cable’s admission that the second round of the Regional Growth Fund is three times oversubscribed, said:
“Vince Cable has admitted today that the second round of the Regional Growth Fund has been more than three times oversubscribed, with 500 bids totalling £3 billion for only £950 million worth of funding.
“Yet again this demonstrates how inadequate this process is in satisfying the desires of hundreds of firms across the country who want to grow. By cutting too far and too fast the Conservative-led Government is hurting businesses and costing jobs right across the country. Labour has proposed topping up the Regional Growth Fund with an extra £200m funded from a repeat of the bankers’ bonus tax. A more balanced deficit reduction plan which prioritises growth and gets people off the dole and into work is the best way to get the deficit down.
“The Government's approach will create far more losers than winners. What sort of growth strategy is this for English regions when all the latest economic indicators show that growth is flat lining?”