The Labour MP and Shadow Business Secretary, Chuka Umunna has hit out at the government over the amount of time it is taking for money earmarked for the Regional Growth Fund (RGF) to actually reach the UK’s businesses.
The RGF, which was set up by the coalition and should give out a total of £1.4 billion over three years, was set up boost the areas which have been hardest hit by the recession and spending cuts.
In April 50 projects were told that they would be receiving RGF funding, according to Labour there are just two businesses nationwide that have actually received any money since the fund was set up more than a year ago.
“The RGF is intended to cover a wide scope of projects, spreading the money very thinly. It means there are now many more losers than winners. Of the winners almost all have still received a penny, it is worrying that Ministers are not aware of the status of this flagship Government programme” said Mr. Umunna.
A spokesman for the fund said “We said in April that successful bidders would start to receive their share in the autumn. So far two projects have received funding. More announcements of companies receiving their funding and the successful bidders in the next round of funding can be expected in the near future.”.