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Regional Growth Fund (30th June 2010)

The government says it is creating a £1bn fund to help English regions which depend on the public sector for jobs.

Firms will be able to bid for money for plans which increase investment, jobs and growth in their area.

The government is axing nine Regional Development Agencies - set up by Labour to support local businesses.

They will be replaced by partnerships between councils and firms - who have been asked for their views on the proposals.

Labour accused the coalition government of policies which risk increasing unemployment and sending the UK into a "double dip" recession and said ministers had broken their promise to keep Regional Development Agencies (RDAs) where they were popular.

Plans for the new "regional growth fund" were in the Budget. Deputy Prime Minister Nick Clegg announced some of the details on Tuesday after a cabinet meeting in Bradford - the first to be held outside London by the new coalition government.

Plans for new local enterprise partnerships - which will replace RDAs - were also outlined by Business Secretary Vince Cable and Communities Secretary Eric Pickles in a letter to councils and businesses.

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