One NorthEast will today unveil a £10m package to support companies during the economic slowdown, as Government Ministers arrive in the region to meet with local business leaders and launch a regional response to current economic challenges.
The new funding will be made available to bolster firms’ growth plans, create and protect jobs, cut energy bills and extend a scheme to help companies experiencing tax and credit difficulties.
Alan Clarke, One NorthEast Chief Executive, Jane Kennedy MP, Financial Secretary to the Treasury and Nick Brown MP, Minister for the North East, will meet with local business leaders and launch the regional action plan ‘The North East Economy: A Joint Response to Changing Economic Circumstances’.
The new assistance, unveiled by One NorthEast, will comprise investment of:
* An extra £2.5m into the Selective Finance for Investment grant - helping small and medium-sized firms expand, create new jobs and safeguard existing posts
* An additional £6.25m into the North East Investment and Co-Investment Funds to give vital access to finance for growing firms
* A further £250,000 to extend the Company Rescue Pathfinder programme to help firms struggling with tax and credit issues
* An extra £1m into the innovative Energy Resource Efficiency scheme to help firms cut rising fuel bills.
Mr Clarke said: “Supporting regional businesses at this time of great economic challenge is of the utmost importance to One NorthEast.
“We have committed £10m from our budget to expand and enhance our package of support. The support package gives firms the security of planning ahead while also helping companies who may be experiencing difficulties now.”
Jane Kennedy said: “I am aware of the difficulties that businesses and households in the region are facing due to the global economic uncertainties.
“Here in the North East we are determined that the Government, along with regional and local agencies, will all work together to ensure that businesses and households get the support that they need and overcome any difficulties they may be facing due to the global economic uncertainties."
After the meeting with business leaders in NewcastleGateshead, ministers and Mr Clarke will visit Wellstream in Walker, the successful designer and manufacturer of offshore flexible pipeline systems, to learn how the firm is continuing to go from strength to strength in challenging global economic conditions.
Last month, Wellstream announced it had won a £600m contract to supply Brazilian state-owned oil company Petrobas with pipelines, safeguarding the jobs of 1,000 workers at its Walker and Brazil bases.
The additional support announced today complements an extensive business support package. One NorthEast heads a pioneering programme of support to help communities and families cut their energy usage by adopting the latest green energy technology.
The regional development agency has invested £377,000 to support Community Renewable Energy (CoRE), a social enterprise in the North East,
which works with the voluntary and community sector to develop renewable energy systems.
The scheme is delivering a £2m pilot programme providing communities with sustainable, reliable energy supplies and generating income for local people and projects.
Newheat is also funded by One NorthEast, working with more than 100 businesses seeking to switch from traditional energy supplies to woodchip boilers.
One NorthEast has also established Community Energy Solutions to provide affordable warmth to vulnerable communities. It is estimated that the company has taken more than 6,000 North East households out of fuel poverty.
And the Low Carbon Lane project will roll out low carbon technologies across the Ashington area with the aim of providing a low interest loan, allowing poorer households access to energy saving products.
The joint response document also details other on-going business support including:
* The streamlined Business Link NorthEast service which is targeting 10,000 firms to take up its support in response to the credit crunch
* Helping business access finance - One NorthEast is currently drawing up plans to secure £125m from the European Commission and European Investment Bank to increase access to finance for regional business
* Selective Finance for Investment - £18m worth of Government investment into the region to support the growth and expansion of small and medium-sized businesses
* One NorthEast administers the Government’s R&D grant, last year supporting 40 firms with £2.5m worth of investment in new products and processes
* Supporting manufacturing - One NorthEast has just invested £30m into the amalgamated Manufacturing Advisory Service North East and North East Productivity Alliance to help manufacturers raise their productivity.
