Getting Growing. The Government’s Plans for Regional Growth

Today, Tom Smyth, the Department for Business, Innovation and Skills principal representative for the region, addressed Service Network members and guests about the government's plans for achieving growth in the North East.

Service Network, part of the Entrust Group, is the only independent voice of the Service Sector in the North East. Dan Brophy, Chief Executive of Entrust, set the scene commenting:

"Rebalancing the economy requires strength and resilience across all sectors. Service Network members recognise that excellence in the service sector is a key enabler and supporter of growth in all other sectors. The step-change that our economy now needs requires all of us pulling together, thinking creatively, working collaboratively, and seeing opportunities in these difficult times. The service sector in the North East is ready to play its part."

Tom Smyth outlined the Government's main economic growth ambitions:

"Looking broadly at the North East, our main priorities are to support growth in private sector enterprise, employment and productivity, as well as to encourage greater employment, and better productivity within work. There are a number of significant measures that the Government has taken to make this happen, such as the Regional Growth Fund, national centres for technology innovation and the creation of Local Enterprise Partnerships."

The two Enterprise Zones operating in the North East have been highlighted as of significant importance in helping boost growth in the region. Located in various sites in both the Tees Valley and in Newcastle, Sunderland and Blyth the purpose of the Zones is to attract significant inward investment and hundreds of new start up firms with simplified planning rules, super-fast broadband and over £300 million tax breaks for new businesses over the next four years.

Tom commented:

"Enterprise Zones, driven and owned by our Local Enterprise Partnerships, represent a significant opportunity to accelerate investment and rebalance the economy."

Tom urged Service network members to build relationships with the newly formed Local Enterprise Partnerships, (North Eastern LEP and Tees Valley Unlimited). LEPs will play a crucial role in driving local economic growth and creating a strong environment for business by drawing upon the knowledge and expertise of the private sector and the opportunities that growth brings. The purpose of local enterprise partnerships is to bring together local business and civic leaders to provide the vision, knowledge and strategic leadership needed to drive sustainable private sector growth and job creation in their area. Tom highlighted that Government expected economic action within LEPs to be "coherent, co-ordinated and cohesive", while activity across LEP boundaries should be based on a spirit of mutual co-operation

Tom also highlighted that the Government intends to announce more details of the third round of the Regional Growth Fund, worth £1 billion, very shortly.

"Those who have ideas, energy and passion to support private sector growth within the North East should be developing their proposals now to make the most of this round of the Regional Growth Fund".

Further details about Service Network and their future events can be found at www.service-network.co.uk or by calling 0191 244 4031.