£500m Growing Places fund to ‘get England building again’

Published by Julien Tremblin for 24dash.com in Housing and also in Central Government, Communities, Local Government

The Government will unlock £500 million to help English developers complete “stalled housing projects” and boost the economy, ministers have announced.

The Government explained that the Growing Places Fund will be made available to “help boost economic growth by getting the required infrastructure built to enable the creation of new jobs and homes".

The fund – which will be allocated in January – is expected to “put local businesses and organisations in charge”. Ministers say 38 agreed Local Enterprise Partnerships (LEPs) - led by local authorities and major businesses across economic areas – will be able to apply for the funding and then take decisions about what to prioritise locally.

The Government explained councils will support these plans with their technical and financial expertise, leaving Local Enterprise Partnerships “free of red tape and better able to focus their attentions on ensuring the funds go to where they will be used most effectively”.

Ministers explain the Growing Places Fund can be used to establish revolving funds to take forward a range of projects that can help "facilitate economic growth, jobs and housebuilding in the local area, providing returns which can be re-invested locally".

The fund will be split between the 38 LEPs with nearly £40m going to London, £23.9m to the Liverpool City region and more than £32m to the South-East of England.

Typical projects will include developments of link roads and access works to unlock mixed-use developments, the provision of flood storage capacity and works to improve local connectivity and reduce traffic congestion.

These plans, the Government says, will enable the development of homes and office spaces while giving a boost to employment and economic activity.

Communities Secretary Eric Pickles said: “The £500million Growing Places Fund will unlock much-needed local infrastructure and get the homes we need built.  It will be local enterprise partnerships, made up of the people and businesses who know their local areas best, who will decide where this cash boost will be spent.

“I now want to see these partnerships coming together and finding innovative ways to unlock local sites and help get Britain building again.”

Transport Secretary Justine Greening said: “Transport is key to unlocking growth. The Growing Places fund will let communities provide the transport links that get people and businesses from A to B. This will be crucial in building the balanced and dynamic economy that is essential for our future prosperity.”

Chief Secretary to the Treasury, Danny Alexander, said: “The half a billion pound Growing Places fund will kick start local developments across the country. This is a flexible fix-it fund that will make a real difference on the ground, improving the lives of local residents and boosting the local economy. From building strategic link roads to reducing congestion, the investment will set businesses free and create jobs.”

Shadow communities and local government secretary Hilary Benn told the BBC: "This announcement is a huge admission from the Tory-led government that abolishing the regional development agencies and the £1.4 billion of funding they received each year was a mistake.

"If this funding is simply to help the new local enterprise partnerships do some of the work that was previously done by the RDAs [Regional Development Agencies] unlocking and co-ordinating investment projects, but with much less funding, then people will feel short-changed."