£8 million reward for economic success

26-JUN-08

North Tyneside's success in growing the economy and encouraging business has earned a £8million windfall in government cash.

Local Government Minister, John Healey has today announced that North Tyneside Council will receive £8m from the Local Authority Business Growth Incentives Scheme (LABGI).

The award is the highest in the region in a £300million national share out and is above the allocation to the likes of Westminster, Manchester and Leeds authorities.

Deputy Mayor, Jim Allan said: " This is tremendous news and a great opportunity for us to continue with our business growth plans and the further encouragement of inward investment, strengthening our economic and employment contribution to the region."

The final decision on how the money will be allocated will be decided by a meeting of Cabinet members.

However, proposals for consideration will include schemes to get residents back into employment and training; encouraging new business growth and the development of existing businesses; new sustainable projects to improve existing and new employment locations.

This is the third successful funding announcement this week for North Tyneside.

The Communities and Local Government (CLG) earlier this week confirmed that the Council has been awarded around £100m in Private Finance Initiative credits for its 'Older People Homes for the Future' project - this is in addition to an award of £4.5m towards two 'extra care' housing schemes for older people.

The borough is also one of eight to share in £625m of funding for its Building Schools for the Future programme.

Issued by:Jeanette Hedley