Limited company contractors could be set to benefit after the government announced it was to inject £950 million into the Regional Growth Fund.
Earlier this week, Nick Clegg, the deputy prime minister, announced the cash injection as part of the coalition’s pledge to stimulate the jobs market. The funding should help to directly create about 37,000 jobs and protect or create around 164,000 jobs in the UK’s supply chain. 119 firms will be able to expand, thanks to the funding, and another 10 enterprises are bidding for funds at the moment.
Clegg said he was delighted to announce this boost for businesses, which will kick start growth and create lasting employment opportunities in areas that need them. As well as enabling businesses to expand, this support will unlock private sector investment.
As more firms expand, highly skilled freelancers could find themselves in demand as projects that have been on the back burner are eventually given the green light to proceed.
Pharmaceutical research contractors based in the Nottingham area, could be one such group to benefit from the funding. Molecular Profiles has received £1.6 million to help it create 62 new high-quality jobs.
However, Ed Miliband, the Labour party leader, does not appear to share Clegg’s enthusiasm. He said this funding was “too little, too late”, saying the £1.4 billion Regional Growth Fund’s three year budget was only 33% of the money made available to the Regional Development Agencies the coalition have scrapped.
He went on to explain that the new funding comes at a time when ministers are withdrawing the capital allowances for companies investing in plant and machinery.
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