North Tyneside backs business

12-MAR-09

Issued by: Jeanette Hedley

North Tyneside Council is seeking government backing to enable it to support its local businesses and the local economy.

It has written to the Secretary of State for Communities and Local Government asking to use the business rate mechanisms as a way of providing a financial stimulus to small and medium sized enterprises in North Tyneside by allowing wider business rate hardship relief.

The letter complements the campaign by the North East Chamber of Trade on the application of business rates on vacant properties.

And it is just one in a number of initiatives implemented by the council to assist residents and businesses affected by the current economic downturn.

Working as part of the Regional Skills and Employment Response Group it is taking action under four themes - 'resilience','redundancy/redeployment', 'recruitment/retention' and 'readiness for the upturn'.

Councillor Frank Lott, Cabinet member for Employment and Economy, who presented an update to a meeting of the Cabinet said: "As a council we are working with our partners to explore all the avenues of assistance available to businesses and residents affected by the current situation.

"The economic downturn has had a marked impact on specific business and industry sectors. Across North Tyneside 521 jobs have been lost - 359 of them at Findus - and as a council we have been prompt to provide support.

"However, the borough is continuing to benefit from the investment and growth strategy of the last decade. We are working with many local businesses to provide advice and support to ensure that we work together through the difficulties of the downturn, but also support them to be ready and better able to compete in the upturn."

The council's other key actions have included:

- Establishing two task groups - the business task group and a retail centres task group

- Every business in the borough has received a letter identifying key contact numbers for help and information about the different support available.

- Support for house builders in partnership with the Homes and Communities Agency has funded registered social landlords to purchase 22 unsold new homes in the borough. These will become affordable rented homes. Developers are also being supported to redesign housing schemes to provide additional affordable housing.

- The council has brought forward a package to stimulate more jobs and businesses with business start-ups support, with skills and training measures. This will be complemented by a £750,000 grant from One Northeast through the European Regional Development Fund.

And the council's strategic investment plans are continuing to drive forward key schemes including the River Tyne North Bank project - to build on existing marine industries and regenerate Wallsend, and the Coastal Zone and Retail Centres programme which includes initiatives to enhance the tourism and visitor related business as well as support the retail sector.