Growth Deals to be expanded

Friday 30 January 2015

Contractors, limited companies and sole traders could potentially benefit from heightened investment from the government into local economies.

The government has announced that it will be investing a further £1 billion into local economies across England as part of its Growth Deals. It says that this is part of its long-term plan to ensure that society is fairer and the economy is stronger.

These Growth Deals were initially struck last July, when plans to invest at least £12 billion in local economies was unveiled. They are intended to provide support to local businesses who wish to train young people, to create plenty of new jobs, build thousands of new homes and start work on a lot of infrastructure projects including improvements to transport and superfast broadband networks.

It has been agreed among 39 Local Enterprise Partnerships that the Growth Deals will be expanded significantly.

The Growth Deals are intended to revolutionise the way that the economy is run, by bringing funding for such things as infrastructure and housing into one pot and then devolved from central government into the hands of local authorities and businesses. It is argued that these groups that have the best knowledge about what is needed in their area and what the potential is to maximise their potential economic growth.

Speaking about the Growth Deals, Prime Minister David Cameron said: "Giving local communities the power and the money to unlock growth and development and make the spending decisions that work for them is a key part of our long-term economic plan to secure a brighter future for Britain and ensure a recovery for all.

"That’s what Growth Deals are all about, backing local people and investing in the infrastructure, housing and skills that will drive forward local economies, create more jobs and opportunities for hardworking people and supercharge all parts of our country."

Deputy prime minister Nick Clegg said that "a quiet revolution" was getting underway in a number of regions across the country and that the Growth Deals represent a change from the past when all decisions were made in Whitehall. He said that he has personally seen the difference that Growth Deals make in local areas, giving them power over business support, skills and infrastructure spending.

Mr Clegg said that the government has been making an effort to ensure public finances are sorted and that firm foundations are set out for growth.

He added: "Growth Deals help create a stronger economy and a fairer society by boosting local economies, and providing more jobs, better transport and affordable homes."

Indeed, the Growth Deals could be useful to limited companies that are looking to expand their ranks in the coming months. According to the latest Report on Jobs from the Recruitment and Employment Confederation, a large number of businesses are planning to hire more staff in the future and this is felt most strongly among microbusinesses.


By Victoria McDonnell

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