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Government adds £300m to growth fund

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90% of the funding will go to projects in manufacturing, according to business minister



The Regional Growth Fund has been expanded by nearly £300 million to include more than 60 new schemes, the government announced today.

Business minister Greg Clark said 90% of the extra support - to be provided over the next two years - would go to projects in the manufacturing sector.

It brings total investment in local jobs and enterprise over the six rounds to £2.85 billion.

Clark told the Commons: "The Regional Growth Fund provides support to key industries in England, creating and safeguarding jobs.

"I'm pleased to announce that the Regional Growth Fund support over the next two years has been expanded today to close to £300 million, including more than 60 new schemes.

"90% of the funding announced today will go to projects and programmes in the manufacturing sector helping companies to expand, developing new products, new markets and creating long-term skilled jobs."

Labour's Barry Sheerman called the news "not bad but not good enough".

He said: "Why can't we have absolutely upfront manufacturing, manufacturing, manufacturing?

"We have just launched a cross-party manufacturing commission. Will you support it? Will you do something about it?"

Clark said the sector had been enjoying a "stunning revival" during the past few years. He added: "It is supported by the investments that have been made by the Local Growth Fund and the Regional Growth Fund.

"£1.1 billion worth of funding has been put specifically into manufacturing. Is there further to go? Of course. But the strategy of this government is clear. By reviving the sectors in which we have strengths that are famous around the world, we can build the prosperity that will provide security for our country for many years to come."

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