Second phase of Regional Growth Fund launched

Date: 01/11/2011

Additional funding has been introduced that could help medium-sized firms with revenue share numbers gain better access to finance.

The second round of the Regional Growth Fund has been launched and 119 bids from businesses and local partnerships will receive £950 million.

According to deputy director-general of the Confederation of British Industry Dr Neil Bentley, this is good news for the country's enterprises.

He believes medium-sized firms have the greatest potential for growth but need better access to financial support in order to achieve their potential.

"We also want to see large companies encouraged to invest in medium ones by making equity investments tax deductible so that they are on a par with debt investments," Dr Bentley added.

He said the Regional Growth Fund will help to bring balance to the UK economy.

This investment may have come at the right time, as the recently published business barometer for October from Lloyds TSB showed there has been a decline in optimism among enterprises.