This is thanks to £5.7 million funding for local companies from the government’s Regional Growth Fund.
In total the East Midlands will benefit from up to £130 million from the Regional Growth Fund. This will support 17 projects, generating thousands of sustainable jobs directly and in supply chains. These include around 1,500 in Leicester and 4,200 in Nottingham.
Today’s announcement follows a further commitment of funding announced in yesterday’s Autumn Statement of £350 million for the Regional Growth Fund, bringing the total to over £2.6 billion.
Deputy Prime Minister, Nick Clegg said:
I’m delighted to be able to announce new jobs in Leicester and Nottingham today, thanks to the Regional Growth Fund. Local companies are receiving the cash injection from the fund and now have their projects up and running, with crucial jobs created in the East Midlands.
And I’m thrilled to confirm that we will keep up the progress made by the Regional Growth Fund with £350 million now being made available to grow British companies. In straightened times, where we’ve got spare cash, it’s vital we put that money into what counts. And it is good value for money - around £6 of private sector money for every £1 of public spend. It is another boost for growth in towns and cities across England and is creating jobs that will last in the parts of the country that need it most.
Druck Limited (GE Measurement& Control) in Groby secured £4.17m from Round 2 of the Regional Growth Fund to create 65 new jobs and protect 214 jobs at the company. Thanks to the funding, which has leveraged a further £15m in private sector investment, the firm will employ the new staff to work in their research and development facility in Groby.
Dr Roger Jones, Director of Druck Ltd (GE Measurement & Control) said:
The support we have received from the Regional Growth Fund was pivotal in securing the remainder of the investment for this project to go ahead in the UK. We will now be expanding our product range for aerospace with leading edge new pressure measurement technology and we are developing an innovative new flow measurement instrument for the oil and gas industry. We will also be establishing an apprenticeship scheme and training academy for our employees.
Nottingham firm Molecular Profiles won a bid for £1.6m of Regional Growth Fund in Round 1, and this money has enabled them to buy land and build a 30,000 square foot extension to triple the capacity of their Research and Development centre - creating 62 new jobs.
Dr Nikin Patel, Chief Executive Officer of Molecular Profiles said:
The Regional Growth Fund award has been crucial in providing our company with the platform for significant growth. The creation of a new pharmaceutical development and manufacturing facility with this award has tripled our capacity, created new jobs and increased our ability to compete internationally.
The Deputy Prime Minister also visited Confetti Media in Nottingham who are part of the City Deal’s Creative Quarter. Their mix of education with work provides a route for 16-24 year olds into the digital technology sector.
Craig Chettle, Owner and MD Confetti Media Group comments:
The Confetti Media Group offers young people real industry training, real opportunities and real jobs in the creative and digital sector. We aim to nurture them into a future that’s directly connected to the business of Britain. As such, we are delighted the Deputy Prime Minister will hear first-hand about their experiences and career ambitions and also hear how the opportunities created by City Deal investment will be so vital, both to their career success and to the economic growth of our city.
Nottingham were one of eight English cities that received funding in the first wave of City Deals - which are agreements between the Government and our great cities that will see radical new powers handed to local people to boost growth.
Leicester is one of twenty cities who are submitting proposals by January 2013 for the second wave of city deals.
Notes to editors
About the Regional Growth Fund
The Regional Growth Fund (RGF) supports projects and programmes that generate private sector investment to create economic growth and sustainable employment. The first three rounds conditionally offered £2.4 billion to bidders and will leverage over £13 billion of private sector investment - creating and safeguarding 540,000 gross jobs.
About City Deals
The first wave saw deals struck with England’s eight largest cities: Birmingham, Bristol, Leeds, Liverpool, Newcastle, Nottingham, Sheffield and Manchester.
The second wave is aimed at the next fourteen largest city regions and the next six with the highest population growth between 2001 and 2010.
- the Black Country;
- Brighton and Hove;
- Greater Cambridge;
- Coventry and Warwickshire;
- Hull and Humber City Region;
- Leicester and Leicestershire;
- Milton Keynes;
- Greater Norwich;
- Oxford City Region;
- Plymouth City Region;
- Preston and Lancashire;
- Southampton and Portsmouth;
- Stoke and Staffordshire;
- Sunderland and the North East;
- Swindon and Wiltshire; and
- Tees Valley.
The twenty Wave Two cities will be asked to submit their initial proposals by 15 January 2013. There will be an element of competition: not all cities should expect to be awarded a deal.
The next wave of City Deals by November 2013.
Nottingham’s City Deal (from Wave One)
- Trial new SME finance products to boost high tech start ups - a venture capital fund worth £45m in total
- Generation Y scheme worth £2m to encourage graduates to start businesses in Nottingham
- Receives £8m investment to invest in infrastructure and transport for the creative quarter through a ‘New Development Deal’
- Receives Super Fast Broadband to the quarter
- Receives a package of measures to help reduce youth unemployment, through employment and apprenticeship hubs, collaboration between business and schools.
- Receives support to extend the city district heating system and support the low carbon economy.
The City was also successful in bidding for Regional Growth Fund money in round 3, for a £10m technology grant fund - to help innovative and high-tech businesses to start up and grow.