REGIONAL FUNDING and Regional Issues - LEPs / City Deal / Regional Growth Fund / ONE NorthEast / Govt.Office North East

[Newcastle Historian]

North East firms encouraged to bid for share of fund
by Will Green, The Journal, February 23rd 2012


NORTH EAST FIRMS will today be invited to bid for their share of £1 billion of Government cash to boost jobs. Deputy Prime Minister Nick Clegg will unveil the latest round of bidding for support from the regional growth fund, established to help boost private- sector employment in areas like the North East which are heavily dependent on the public sector.

The money will be available to businesses and public-private partnerships with ambitions to create jobs and make a significant impact on their local economy. Ministers say the programme leverages in private-sector investment, with at least £5 put in for every £1 of public money. The fund is now worth £2.4 billion in total, after the Chancellor announced an additional £1 billion last year.

Clegg said: “The regional growth fund is already having a huge impact across the UK. So far there have been over 170 successful bids to the fund, leveraging around £7.5 billion of private-sector investment and set to create and protect 330,000 jobs. “I want to see more businesses confident they can create jobs and get Britain building and making things again, coming forward.”

Neville Bearpark, corporate finance partner at Newcastle-based accountancy UNW said, "The biggest challenge the North East faced was in co-ordinating large programme bids which will provide legacy funding far into the future. There is a clear role for the North East LEP to lead this. However, our LEP already trails behind others such as the North West and Leeds who were successful with large bids in Round 2. Now is the time for the North East LEP to embrace RGF and deliver an innovative Round 3 bid.”


Read More (Two Pages) - http://www.nebusiness.co.uk/business...1140-30390367/

[Newcastle Historian]

Academics warn North-South divide is widening
by Adrian Pearson, The Journal, February 28th 2012


SENIOR ACADEMICS have warned the North-South divide is widening due to the Government’s treatment of the regions. Researchers contributing to a Smith Institute report on coalition efforts to improve the regional economy say a flagship policy is destined to fail.

The think-tank has questioned the value of the Government’s Local Enterprise Partnerships (LEPs) in which council leaders and major employers lead local job-creation efforts. Those partnerships, the researchers say, have only a small percentage of the money and almost none of the influence previously put to use by the regional development agency One North East.

Last night Paul Woolston, chair of the North East local enterprise partnership, insisted they were lined up to be leading advocates of the region, but with the £220m-a-year One North East set to close down for good next month, the pressure is mounting on ministers and LEPs to say how they will stand up to the full impact of global economic forces.

Professor John Tomaney, director of the centre for urban and regional studies at Newcastle University, said no matter what the partnerships’ intentions, they would lose out. The North East LEP has had some £17m handed to it from the Government’s Growing Places fund, while nearly 50 firms have benefited from Regional Growth Fund cash.

Prof Tomaney said: “We are starting to see the full consequences of losing the regional development agencies. We see this move as the dilution of the regional voice and a retrograde step. The implications of this will become clearer as time goes on. I think right now the local enterprise partnerships inevitably lack the clout and resources that the development agencies had. The kind of resources available to them, the Growing Places and Regional Growth Funds, are a fraction of what was available previously.


Read More - http://www.journallive.co.uk/north-e...#ixzz1nfa7tJ3m

[Newcastle Historian]

One North East bosses proud of what has been achieved
by Adrian Pearson, The Journal, March 1st 2012



OVER 13 YEARS they laid the foundations for the North East’s 21st Century economy ... that is the bold claim from departing regeneration bosses. One North East chairman Paul Callaghan and chief executive Alan Clarke will this month close down for good the £220m development agency set up in 1999 to tackle the North-South divide. With around £2.7bn spent and 160,000 jobs created the agency has some claim of success. But with average economic measurements still stubbornly around the 1999 levels there will be some who question the agency’s legacy.

A proud Mr Callaghan said: “We took the region from being one suffering the effects of de-industrialisation, from the end of shipbuilding and coal mining, to one which has a clear vision of its new strengths. That meant helping to create a workforce with the right skills, to making the big decisions about where we should be investing. Now we have here two research centres which we backed that are now counted as national assets, that lead the way. We are a lot more diverse in the region now, less dependent upon one or two sectors.”

He added: “I think previously, in its earlier days, the agency handed money to others to spend, but under Alan we decided to invest in the bigger projects ... those strategic sectors which needed our support.” That guiding role eventually formed a three-rivers approach, with the chemical sector in Teesside, Nissan and its supply chain in Sunderland, and the renewable energy sector in Tyneside used as the basis to create thousands of jobs.

Asked how he thinks the agency’s legacy will be seen, Mr Callaghan said: “I am proud of what we have done here, very proud. We have come a long way from the situation we faced in the mid-1990s. “We are in a much stronger position now. One North East is not the only reason for that, but we played our part, and we have helped to lay the foundations for the 21st Century, and I’m proud of the work we did, of our role in that.”


Read More - http://www.journallive.co.uk/north-e...#ixzz1nrN7afK5

[thenorthumbrian]

THE North-East enjoyed the greatest level of economic growth outside London during One North East's tenure, documents released today show.
The legacy documents, released ahead of the regional development agency's closure at the end of the month, highlight that during its existence, increases in the region's employment, business numbers and GVA (gross value added) were among the highest in the country.
They state that before the agency was established in 1999 the regional economy was falling further behind every other English region but after it came into being, only London saw greater levels of economic growth.
In 2010, the then new coalition Government announced itwas axing the regional development agencies and replacing them with Local Enterprise Partnerships.

http://www.thenorthernecho.co.uk/bus...ocuments_show/

[Newcastle Historian]

.
Newcastle's bid for the Green Investment Bank (and the loss of that bid) was covered on the "Newcastle Area - Green Issues & Renewable Energy Business" thread, but I think the below article is more appropriate to this thread . . .

G9's anger over failed green investment bank bid
by Iain Laing, The Journal, March 14th 2012


THE North East's failed bid to attract the green investment bank has prompted anger from professional lobby group G9. The group of nine senior surveyors argued for more co-ordination of investment fundraising in the region to stop more projects like the bank and the Amazon call centre being lost to Scotland.

“Inward investment opportunities were historically fielded by the publicly funded development agencies ultimately in the region through One North East”, said Ian Parker, consultant, GVA, and a member of G9. The RDAs were able to provide a consistent voice in terms of economic development across the whole region and both attract/support new employment initiatives for the benefit of the local economy."

“However, with the demise of One North East and, as a consequence, the loss of a “single voice”, the region will be deprived of a route to Government funds for economic regeneration and weaken the front line approach to the attraction of new companies to the region by way of inward investment.

“This needs to be addressed. The region has already lost two office lettings to Scotland – Amazon’s 60,000 sq ft requirement and the 50,000 sq ft Green Investment Bank. Scottish grant availability means we are competing on a far from level playing field, which has to be of concern to all in the property sector. The fact that three locations within the North East pitched for the Green Bank shows again that fragmentation rather than a concerted effort to win for the region is counter-productive.”


Read More - http://www.nebusiness.co.uk/commerci...1140-30527418/

[Newcastle Historian]

Budget 2012 - Funding for Super-connected Cities
BBC News - Technology Website, 21st March 2012


Chancellor George Osborne has announced which cities will benefit from a £100m pot of Treasury cash aimed at making them "super-connected".

The ten cities are . . .

London
Edinburgh
Belfast
Cardiff
Birmingham
Bradford
Bristol
Leeds
Manchester
Newcastle.

Mr Osborne said that he wanted the UK to become "Europe's technology centre". The super-connected cities were first announced in Mr Osborne's autumn statement when he pledged £100m to create 100Mbps (megabit per second) citywide networks in 10 urban areas. By 2015 it is hoped the investments in cities will provide ultrafast broadband coverage to 1.7 million households and high-speed wireless broadband for three million residents.

The announcement by the chancellor is a recognition of the fact that broadband technology underpins the economy as a whole, and in particular the digital content industries in this country. Others felt that money would be better spent in improving rural broadband.

"Whilst funding earmarked for ultra-fast broadband in 10 UK cities is both ambitious and heartening, and will undoubtedly benefit technology companies looking to develop and expand in the UK, the primary concern should be the provision of a quality service to rural areas before pursuing the title of fastest broadband in the world," said Julia Stent, director of telecoms at price comparison site Uswitch.


Read More - http://www.bbc.co.uk/news/technology-17457975

[bigchrisfgb]

How much of the city will it cover though? Also will Gateshead, South Tyneside, North Tyneside, and Northumberland benefit from it as well? because they are very close to Newcastle.

[Newcastle Historian]

Originally Posted by bigchrisfgb

How much of the city will it cover though? Also will Gateshead, South Tyneside, North Tyneside, and Northumberland benefit from it as well? because they are very close to Newcastle.

I have not seen the area to be covered by this actually "defined" anywhere.

However, it clearly says Newcastle, so I can only assume it means exactly that - just Newcastle . . .

[toonlad]

Good, about time NTC realise they are a collection of SUBURBS and should be supporting Newcastle as the commercial centre of our city.

[Newcastle Historian]

Originally Posted by toonlad

Good, about time NTC realise they are a collection of SUBURBS and should be supporting Newcastle as the commercial centre of our city.

Don't think (as far as I know) that any of NTC will be included in the 'super-fast' broadband though.

[bigchrisfgb]

I think NTC are working with BT to try and roll out BT Infinity across the borough. BT's lines are shockingly slow in North Tyneside. It's ok if your in places that are Virgin Media areas as at least you have an option, but some places in the borough aren't provided by Virgin Media. My main concern would be that the better places of the borough for internet access will be the first ones to receive BT Infinity where as those who have shockingly bad internet connections will be the last to receive it.

[Newcastle Historian]

North East's poor transport links highlighted by experts
by Adrian Pearson, The Journal, March 26th 2012


THE world’s most prestigious economic forum has said the North East’s poor transport links have crippled its private sector. Experts from the Organization for Economic Cooperation and Development (OECD) are presenting their damning findings on regional growth at a two-day conference in NewcastleGateshead, starting today.

Those attending the event will be presented with an OECD study which urges ministers to stop focusing on just one or two key areas such as London and its financial services, and instead plough resources into “lagging, lower income regions”. More than 150 delegates from 15 countries are on Tyneside today to attend an international conference on how to promote economic growth.

It follows a damning 2006 OECD study of the region which said not enough was being done to secure economic growth for Newcastle which would then benefit the rest of the North East. Newcastle and the North East is one of the 23 international case studies included in the OECD report which warns that “as a result of relatively low involvement of the private sector, the city region has relied excessively on public sector activity and employment”.

Researchers add that there is a “small private sector in comparison to national and increasing trend”. The OECD said: “A strong focus is needed on internal infrastructure including its transport system and housing supply to improve internal connectivity and enhance public transport infrastructure in order to develop a stronger and better connected economy.” The report’s authors also identify changing Government policy as another issue threatening to hold the region back, stating that “poor continuity in governance and in policy design brought by institutional instability also affect the North East Tyne and Wear.”


Read More - http://www.journallive.co.uk/north-e...#ixzz1qCuKJ6KV

[Irish Blood English Heart]

We all know transport spending has been pathetic in the N.East (is it something like £5 per head compared to a few thousand per head in London and a few hundred in the N.West?).

There's no votes in spending money in the N.East unfortunately, so we'll see Tory govts concentrate on regions they feel they can gain a foothold in (N.West & Yorkshire) and Labour govts take us for granted and throw a few scraps.

If we had a federal system we'd see a hell of a lot more spending thrown our way to unlock our potential.

[bigchrisfgb]

I'm not sure where to place this so I'm going to place it in here as it references support from 1NE.

Anyway this seems to indicate that there is or was plans to create another business park in Gosforth, on the site of the former Weetslade colliery site which would include a dual carriageway bypass of Sandy Lane.

The document is a few years old as it does reference other work in North Tyneside which has been carried out; most notably the Holystone roundabout improvements and Northumberland Park's park and ride facilities.

http://www.tyneandwearltp.gov.uk/wp-...9/CRPv2pt4.pdf

[Newcastle Historian]

Originally Posted by Newcastle Historian; January 21st 2012

Newcastle City Council to highlight city’s bid for cash
by Adrian Pearson, The Journal, January 21st 2012

MINISTERS will next week be asked to act urgently to help cities such as Newcastle return to economic growth. Cities’ minister Greg Clark will hear again the case for new powers when he appears at the launch of the Centre for Cities’ annual report on Monday.

Putting forward the case for Newcastle will be council leader Nick Forbes, who has already held detailed talks with the minister, along with Gateshead Council leader Mick Henry. Mr Forbes will present his case after seeing the results of a think tank’s latest look at how England’s biggest cities are performing in the face of Government spending cuts.

Read More - http://www.journallive.co.uk/north-e...#ixzz1k5LIo9Hm

City deal held back until after Newcastle's mayoral vote
by Adrian Pearson, The Journal, April 3rd 2012

CITY DEVELOPMENT powers will be held back by ministers until after Newcastle’s mayoral referendum. Cities minister Greg Clark said a bid by Newcastle City Council for borrowing and regeneration powers would only be handed over to a strongly-led local authority. Newcastle wants to take advantage of the Government’s City Deals programme to revive its East Pilgrim Street shopping centre plans and receive Department for Business support to open up a new direct flight to America.

Speaking to The Journal, Mr Clark said that while he greatly respected the work council leader Nick Forbes was doing, the city needed a system that was built around a stronger leadership model. He said: “We need to be convinced that the leadership is strong enough to have considerable powers devolved to them. We think the mayoral system is best way to achieve this – a leader with a clear mandate who can take the region with them."

“If you do not have that then, yes, we will need to be convinced that you have strong arrangements in place. It is not enough for councils to exchange letters and say they are working with each other. Stronger partnerships would need to be in place.”


Read More - http://www.journallive.co.uk/north-e...#ixzz1qxuhTjVp

[bigchrisfgb]

So basically it's a case of conning us into voting for a city mayor.

[Newcastle Historian]

Tyneside weak investment powers put firms off
by Adrian Pearson, The Journal, April 20th 2012


The River Tyne at Newcastle Quayside

FIRMS are being put off investing in Tyneside because the Government has yet to hand Newcastle the same investment powers proposed for Liverpool and Manchester, it was claimed last night. Senior business leaders charged with bringing investment to the region say they have been told Tyneside lacks the incentives on offer in other cities, and this would prevent job relocation decisions favouring the North East.

For example, Standard Chartered Bank is believed to have made clear to several Tyneside developers that it sees little point in relocating more than 1,000 back-office jobs to an area that cannot offer the incentives available from the likes of Liverpool. However, the bank now says it is unlikely to invest anywhere in the UK, and insists it was not at the point of selecting a preferred city. However the snub raises the biggest warning yet that Newcastle and the wider Tyneside area is in danger of slipping into second-class status as other municipalities rush to take advantage of new city powers on offer.

As voters prepare to have their say on plans for a city mayor in Newcastle, business leaders have said it is vital the region catches up with rival cities already merging economic efforts in exchange for millions in Government regeneration cash. Ministers are waiting until after the May 3 referendum before signing off on a “city deal” which would bring in cash to transform parts of Tyneside and make available money to offer as incentives to new firms. Already the region has been told by senior Government figures, including Lord Heseltine, that Newcastle might be considered too small to lead on its own and will need to agree new governance arrangements with other councils to fit in with the Conservative plans to hand more responsibility to larger city-regions.

Cities minister Greg Clark told The Journal last month that there would be no sign off on the city deal unless either a mayor is elected in Newcastle or a “greater Tyneside” group is formed. Last night Lord Shipley, the former Newcastle Council leader now advising Mr Clark, said the Standard Chartered incident show “there is no choice but to work together on this”. He added: “This shows the importance of being clear to ministers and businesses about just what are governance arrangements are, and setting out a clear policy on how decisions over inward investment will be made at a city-region level. Manchester is going down the combined authority route, Liverpool is to get an elected mayor. Newcastle and the city-region has to do like wise on one of those options.”


Read More - http://www.journallive.co.uk/north-e...#ixzz1sZBv3mgc

[Newcastle Historian]

Concern that £120m of North East England
regeneration funds may go to Europe
by Adrian Pearson, The Journal, May 1st 2012

THE TREASURY may be ready to trade off North East regeneration funds for a European Union rebate, a parliamentary committee has heard. Some £120m in European regeneration funding is so far unspent in the North East, with a deadline to allocate it all just under two years away, but a series of Government moves, including council cuts and the axing of jobs agencies, means there is a growing risk the region will not be able to use the cash, which EU rules say must be matched pound for pound with UK money.

Now spending experts warn that, at current rates, £1bn of EU jobs cash will go unused and they accuse the Treasury of plotting to hand it over to Europe in exchange for a hefty rebate.

Newcastle North MP Catherine McKinnell has raised the issue with the Government on several occasions and said the growing signs of inaction were a disgrace. She said: “Back in December, I warned the Chancellor that the North East’s £120m slice of European funding was at risk of going to waste and urged him to address the situation and now almost five months later, the same amount is still unallocated. What was then a major concern is now a matter for public outrage."

“The Chancellor knows full well that our region desperately needs this injection of investment. Projects, which would create much-needed jobs and growth, are stalling all over the country from lack of investment and councils are quite justifiably up in arms about it. The response I have had from the Chancellor, for what it’s worth, is just not good enough, the North East needs to hear how he intends to rescue our £120m before it is lost to Europe, so I will be looking to secure a debate on this urgent matter in Parliament at the earliest opportunity.”

The Department for Communities and Local Government, now responsible for spending the European cash, has repeatedly said it is on course to meet its deadlines.



Read More - http://www.journallive.co.uk/north-e...#ixzz1tbVDpPYG

[bigchrisfgb]

£120m, that could help pay for improvements to the A19, help roll out Fibre optic broad band to rural areas, pay for the Tyne and Ashington railway line to re-open, buy new Metro's etc.

[Newcastle Historian]

Victor Forbes pushes coalition for action on regeneration
by Adrian Pearson, The Journal, May 5th 2012


MINISTERS have been told not to 'punish' Newcastle for voting no in the Mayoral Referendum and finally sign off a package of city-specific investment powers. Voters in Newcastle overwhelmingly said no in a referendum on an elected mayor. The Government has been withholding major package of job support and regeneration measures from Tyneside while it awaits the outcome of the referendum. Voters in the city yesterday rejected the chance to have an elected mayor by 40,089 votes to 24,630. Now all eyes are on the Department for Communities and Local Government to see what its next move will be.

Last night, as ministers admitted it would now be months before they trusted the city with job-creating powers, there were warnings that every day’s delay is “costing hundreds of jobs”.

Newcastle is expected to be told it must work to introduce a “combined authority” with other Tyneside councils to secure a multi-million pound support package including the power to borrow cash for city centre regeneration, a stronger say over job creation efforts nationally and Government help to improve transport links, including backing for a Newcastle-USA direct flight. Cities minister Greg Clark had previously said he would sign off on the support package “within weeks” of Newcastle voting for an elected mayor.

Yesterday council leader Nick Forbes, whose Labour group took six more seats in local elections, sent a letter to Mr Clark and deputy prime minister Nick Clegg calling for immediate action. Mr Forbes told The Journal: “People today have resolved the issue of whether or not Newcastle needs an elected mayor, but there is no reason other than politics for why this should hold up the City Deal.


Read More (Two Pages) - http://www.journallive.co.uk/north-e...#ixzz1tyoI4pBl