Local Enterprise Growth Initiative announced

Business growth in areas which have a long-standing dearth of inward investment and high levels of unemployment shortage was boosted by the announcement of the second round of the Local Enterprise Growth Initiative.

The Government has announced that £60 million will be available from January 2007 and the deadline for applications is 14 September 2006.

LEGI is a joint initiative between the Office of the Deputy Prime Minister, HM Treasury and the Department for Trade and Industry. The initiative has already provided £126million to ten bidders covering 15 local authority areas to support locally-developed strategies to boost local economic activity.

Launching the second round ODPM Neighbourhood Renewal Minister Phil Woolas said:

"The best proposals in LEGI's first round showed a genuinely deep understanding of local issues and demonstrated the role of strong local partnerships in delivering change. Those putting forward proposals for round two can learn from the best of round one and we have published those on the neighbourhood renewal website.

"Authorities will need to develop proposals based on careful analysis of the evidence of need and gaps in provision and in partnership with the private sector and their Regional Development Agencies. They will also need to demonstrate how their proposals will fit with the other outcomes and targets in their Local Area Agreement.

"We are particularly keen to see well thought out bids from local authorities with the highest levels of deprivation and low rates of enterprise formation. We will consider whether such authorities need further support to help them develop such bids."

John Healey MP, Financial Secretary to the Treasury, added:

"Our aim is to encourage a step-change in economic activity in some of the most deprived areas in England. LEGI is a new approach and we have already backed the best of more than 50 bids with substantial flexible and long-term funding. We have now made available a further £60 million for areas to boost local economic activity. The action we
want to support should strengthen the enterprise base in areas which need increased entrepreneurial activity, more sustainable growth of local businesses and greater investment in local jobs."

DTI Minister for Industry and the Regions Alun Michael MP said:

"If we are to compete effectively in the global economy we have to develop a "can do" attitude in every section of the community - including women, young people and ethnic minorities. LEGI can be a vital element in achieving this, and I encourage all local authorities who are thinking of bidding to learn from successful bids and consider how best they can use LEGI funding to encourage enterprise in some of their most disadvantaged areas."

Successful bidders will need to show how their approach will deliver:

• An increase in business start-ups by helping to increase the entrepreneurial activity among the local population
• Support the growth and reduce the failure of locally owned existing businesses
• Create jobs for local residents by attracting appropriate inward investors