Regional Growth Fund drop-outs pass 100
Wed, 12th November 2014

Regional Growth Fund drop-outs pass 100

By Laurence Kilgannon, Assistant Digital News Editor

The number of projects and programmes allocated Regional Growth Fund (RGF) cash but are now not proceeding has risen past the 100 mark, Insider can reveal.

A Gloucestershire manufacturer is among the companies not to have taken up the funding despite a successful bid, meaning almost £500m has not been drawn down from the government's flagship economic stimulus programme since it was launched three years ago.

Following a Freedom of Information request, the Department of Business, Innovation and Skills (BIS) told Insider that from 3 February 2014 to 7 November, 22 companies which had been allocated funds have elected not to take the money.

This is on top of 94 from rounds one to five of the RGF.

In total, it means that 116 awards with a value of £491m are no longer proceeding. The money was made available to the beneficiaries, but not drawn down, BIS said.

Trackwise Designs, which develops products using printed circuit technology at its base in Tewkesbury is one of the latest 22 companies which BIS said had not drawn down its allocated money.

The business was offered conditional funds as part of the fourth round RGF in July 2013. Insider contacted Trackwise but it was unable to comment.

In June, the then business secretary Michael Fallon said RGF payments remained on track, despite criticism regarding how long it takes for recipients to get their grants.

Fallon said £1.2bn has now been paid out to projects and programmes from the first five rounds of the RGF ahead of the 30 September closing date for sixth round applications.

category South West  |  source Insider Media