27 February 2007

South Yorkshire receives over £8 million to encourage business growth

Treasury Minister and local MP John Healey, has announced today that local authorities in South Yorkshire are to be awarded over £8 million to encourage business growth in their areas.

Rotherham is set to receive £699,425 under the Local Authority Business Growth Incentive Scheme (LABGI), which provides councils who have encouraged business growth in their area with an unringfenced reward from Government. The money is genuinely additional and the scheme encourages local authorities to build partnerships with local business and promote long-term economic sustainability in their areas.

Local MP John Healey, who announced the payments today in his capacity as Financial Secretary to the Treasury said:

“We are delighted to announce the grant payments for the second year of this scheme. The scheme provides substantial rewards for local authorities like Rotherham, who encourage business growth in their areas.”

Mr Healey went on to say:

“I believe that local authorities have a vital role to play in building the full economic potential of our country, promoting long-term growth, enterprise and jobs, as well as tackling the disparities in economic performance between and within regions.”

"Over recent years South Yorkshire's economy has seen a remarkable regeneration, and this scheme both confirms its continuing growth and provides reward funds to help councils support more jobs, enterprise and growth in the area."

This is the second year of a three year scheme which expects to see up to £1billion allocated to local authorities across the country by 2007/08, and ensures that every local authority has a direct financial incentive and reward to do more to promote enterprise, employment and the growth of local businesses.

Details of the grant payments to individual authorities, and of the LABGI scheme, can be found on the Communities and Local Government website at www.communities.gov.uk

Notes to editors:
1. The LABGI scheme was announced by the Chancellor in 2002.

2. LABGI delivers financial rewards directly to local authorities that promote the greatest levels of continued economic growth in their local areas by allowing them to retain increases in revenue derived from business rates.

3. Locally, this year, Barnsley is set to receive £200,140; Doncaster £4,537,992; Rotherham £699,425; and, Sheffield £2,795,068 under the Local Authority Business Growth Incentive Scheme (LABGI).

4. Nationally, in year one (2005/06) LABGI payments totalled £126.6 million. The allocations in year two will consist of at least £316 million.

5. The future of LABGI will be subject to a more fundamental review of the role of local government in driving economic development, which is being undertaken as part of the government’s Comprehensive Spending Review.

6. For more information please contact: Joanne Wilson, Researcher to John Healey MP on Tel (01709) 512463.