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Reality of the Regional Growth Fund - only two businesses helped, none in the East of England

Ed Miliband MP, Leader of the Labour Party, highlighted at Prime Minister’s Questions today how the Tory-led Government’s plan for the economy is not working.

The Regional Growth Fund has helped only two businesses across the country to date and neither of these is in the East of England.

Ed Miliband MP, Leader of the Labour Party, speaking at PMQs, said:

"They’ve certainly issued lots of press releases about the regional growth fund: 22. But how many businesses have been helped in the last 16 months? Two businesses have been helped. Two businesses in 16 months. And how many businesses have gone bankrupt in that time Mr Speaker? 16,000.

"What greater example could there be of the way this Government’s plan is not working. We’ve had 18 months of his economic experiment and what’s he got to show for it? More and more people losing their jobs, more and more businesses going bust and inflation going through the roof. And all we’ve got is a Prime Minister who’s hopelessly out of touch."

By scrapping the Regional Development Agencies and putting in place a Regional Growth Fund, the Government has effectively cut funding for regional growth by two thirds.

This week Chuka Umunna MP, Labour's Shadow Business Secretary, launched Labour’s five-point plan for jobs and growth in the East of England.

Labour is calling for the following emergency measures to help boost the economy in the East of England:
 
1. Create up to 4, 000 jobs for young people and build 1,400 new homes
2. Bring forward investment projects like new school buildings
3. Temporarily reverse the Tory-led Government's VAT rise- a £450 boost for families with children.
4. Cut VAT in home improvements to 5% for a year.
5. Give 210, 000 small firms a tax break to take on extra workers.