Growth incentive fund cut
Author: Local Government Chronicle |
The government’s flagship scheme for encouraging business growth has been reduced by a third due to the crisis in the public finances.
Under the new Local Authority Business Growth Incentive (LABGI) scheme announced at the 2007 comprehensive spending review, councils were due to share £150m over two years.
But announcing details of the scheme yesterday, local government minister Rosie Winterton revealed the sum would be just £100m.
Originally, £50m was to be distributed in 2009/10 and £100m in 2010/11. Officials at the Department for Communities & Local Government have now confirmed the second year allocation will be halved.