Press Release      << Back

East Midlands launches response to current economic challenges and boost to funding for local business

21/08/2008

Today, Angela Eagle MP, Exchequer Secretary to the Treasury and Phil Hope MP, Regional Minister for the East Midlands visited the region to explain how Government and East Midlands Development Agency (emda) are supporting businesses and households through current economic challenges.

During the visit, Ministers and emda Chairman, Dr Bryan Jackson, launched ‘The East Midlands economy - A joint response to changing economic circumstances’ – outlining the collective approach that HM Treasury, the Department for Business Enterprise and Regulatory Reform (BERR), and emda are taking to help companies and individuals affected by problems of tighter credit conditions and increasing commodity costs. 

As part of the response, emda announced its intention to make an immediate injection of a further £1 million over the next 12 months to supplement its Business Transformation Grant (BTG) currently available through Business Link for investment in plant and equipment to support resource efficiency. 

During the visit, both Ministers met with regional businesses and other stakeholders to provide them with the opportunity to share their experiences and highlight the issues they are facing. 

Angela Eagle, Exchequer Secretary to the Treasury, commented:  “I am aware of the difficulties that businesses and households in the region are facing due to the global economic uncertainties. So here in the East Midlands 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.”

Bryan Jackson said:  “Our regional response document demonstrates that helping businesses is the primary role undertaken by emda.  The first port of call for companies wanting support is Business Link and over the last two years, we have developed a professional independent advice service, tailored to respond to the challenges and queries raised by businesses. 

“More recently, since the effects of the credit crunch and downturn in the property markets became apparent, we have re-focused our Business Link advisers to ensure they give smaller businesses practical advice to survive in an economic downturn.  By supplementing our BTG as announced today, we want to encourage businesses to invest in plant and equipment which will enable them to manage their resources more efficiently and improve their cost base.”

From a national perspective, the joint response also outlines the range of measures that Government is implementing to respond to these economic challenges.  These include activities to help stimulate the housing market such as additional investment to improve the provision of affordable housing in the East Midlands; an increase of £60m in the amount of lending that banks can approve under the Small Firms Loan Guarantee Scheme, bringing the total to £360m this financial year; and developing schemes to boost skill levels to ensure a dynamic and flexible workforce.

Speaking at the event, Phil Hope, Minister for the East Midlands said: “With help from emda, I will be taking action to ensure companies across the region use the Government’s Train to Gain cash to improve the skills they need to meet the challenges posed by changes in the global economy.”

“The whole world is feeling the effects of the credit crunch and the East Midlands is no exception. During these difficult times businesses need to be innovative and invest in skills in order to thrive - we can’t compete with emerging economies in terms of price, but we can beat them when it comes to the quality of our workforce.”

Further examples of financial support available to help businesses through these tough times are also outlined in the document.  These include:
• £3.5m of Selective Finance for Investment (SFIE) grant funding available to companies this financial year
• Between £3,000 and £20,000 available to small businesses that are unable to obtain bank finance through the EnterpriseLoans East Midlands programme
• £4.1m of Grant for Research and Development (GRD) programme funding available to companies during 2008-09.

Bryan Jackson added: “This is just the start of the process.  We very much welcome inputs on what more can be done to support our economy over the coming weeks and months.  We will also continue to listen to regional businesses and stakeholders in order to further inform our understanding of what is happening in the economy.”

He also encouraged partnership and cross-agency working, and a continued focus on the Regional Economic Strategy (RES) which outlines the region’s priorities over the next decade.  Dr Jackson highlighted the importance of not losing sight of the long-term goal of making the East Midlands a flourishing region by 2020.

ENDS

Notes for Editors

Media Opportunities

Copies of the document are available at www.emda.org.uk/eastmidlandseconomy and there will be photograph and interview opportunities at emda, Apex Court, Nottingham, on Thursday 21st August 2008 from 3.45pm.  Media wishing to attend should contact Clare Baker, Media and PR Manager at emda on 0115 988 8583 or clarebaker@emd.org.uk .

About emda

• East Midlands Development Agency (emda) is one of nine Regional Development Agencies in England, set up in 1999 to bring a regional focus to economic development.

• Working in partnership with public, private and voluntary organisations the aim is to deliver the 2006 Regional Economic Strategy (RES) ‘A Flourishing Region’, which sets out regional priorities until 2020.

• The RES, coordinated by emda, highlights the themes of productivity, sustainability and equality and builds on the previous two strategies; ‘Prosperity Through People’ and ‘Destination 2010’.

• In early 2007 the National Audit Office announced emda had received the highest possible grade of 'performing strongly' in an independent assessment of our work - scoring 22 out of 24.

• For more details visit www.emda.org.uk .