THE North East was today promised thousands of new jobs after the Government awarded more than £50m to firms across the region.
Business Secretary Vince Cable said 5,216 direct jobs and 8,367 indirect jobs would be created and safeguarded by the awards to 14 North East firms from the Government’s £1.4bn Regional Growth Fund.
Speaking to The Journal, he said the grants would be a “useful catalyst” with the fund designed to help boost the private sector in areas of the country hit by public spending cuts.
The North East saw the highest number of firms awarded cash from the fund – including Nissan, Procter & Gamble, Durham County Cricket Club and Redcar steel works’ new owners SSI.
Nissan’s Wearside factory will likely create 1,000 new jobs as a result of the investment.
And two bids on the North bank of the Tyne, Duco and Bridon International, will between them create more than 700 jobs as they expand their sites.
North East businessman Sir Ian Wrigglesworth, deputy chairman of the panel advising ministers on bids, said the growth fund awards had pulled in a further £442m of private sector investment and other sources, such as European regeneration and council money, to the region.
He said: “It is an enormous boost to the private sector in the region and the regional economy.
“The other thing that will please people is that this is to manufacturing and hi-tech business, which is where the region needs to be going and will lead to them generating jobs and wealth in the region for many years to come.”
Companies will have to wait before finding out exactly how much money they will receive, with the Department for Business, Innovation and Skills stressing allocations are conditional and subject to a due diligence process.
Across England, the Government said more than 100,000 jobs would be created or secured with £450m from the fund handed to 45 firms following a first round of bids.
