£450m funding for UK green business

Several UK green businesses will receive funding from a new fund which aims to stimulate enterprise by providing support for projects and programmes with potential for creating private sector led […]

By Tom Gibson

Several UK green businesses will receive funding from a new fund which aims to stimulate enterprise by providing support for projects and programmes with potential for creating private sector led economic growth and employment.

The Regional Growth Fund totals £1.4bn and operates for three years between 2011 and 2014.

Deputy Prime Minister, Nick Clegg said: “Today is a step towards rebalancing our economy away from an unhealthy overreliance on a small number of industries and a few areas. We need to spread opportunity across the whole country, drawing on our many talents. I know that with the right support these businesses can work with their communities and together play their part in leading the country back into prosperity.”

The government will invest £450m in 50 successful bids and aims to lever £2.5bn in private sector investment that will create or safeguard over 27,000 direct jobs and close to a further 100,000 indirect jobs.

Benjamin Sykes, Director of Innovation at the Carbon Trust, who received £1.9m, said:

“The public and private sector funding will be used to accelerate the uptake of energy efficiency in a range of industrial sectors from dairy and aggregates through to bakery and animal feeds. The project is anticipated to generate cost savings of up to £70m annually and 3,000 jobs in the manufacturing sector by 2020.”

Round two of the RGF starts today and is the main bidding round. The aim is to allocate the remainder of the money available. A third round could follow but would be small and would aim to commit any remaining unallocated money at the end of Rounds one and two.