Written question asked by David Drew (Labour) on Wednesday, 7 December 2005, in the House of Commons. It was due for an answer on Monday, 12 December 2005. It was answered by Alun Michael (Labour) on Wednesday, 14 December 2005 on behalf of the Department of Trade and Industry.

Phoenix Fund

Question: To ask the Secretary of State for Trade and Industry what plans he has for the Phoenix Fund; what other funding streams he expects will be available for community development funding agencies; and if he will make a statement.

Answer: The Phoenix Fund was introduced in 1999 as a time-limited programme to help build good practice on business support for under-represented groups and deprived communities. It was not designed to provide long-term core funding for these organisations. Under the 2004 spending review for the period 2006–07 to 2007–08, the DTI is making available a £6 million per annum contribution to regional development agencies, toward their support for enterprise in under-represented groups and deprived communities. The Government have also introduced the Community Investment Tax Relief scheme to enable community development funding agencies to raise finance from the private sector. The first 23 accredited Community Development Finance Institutions are aiming to raise over £80 million this way, which is double the figure that has been committed to the sector through the Phoenix Fund. Furthermore, following the Graham Review of the Small Firms Loan Guarantee scheme, there is now scope for more Community Development Finance Institutions to become Small Firms Loan Guarantee scheme lenders under the new arrangements and it is hoped this can be taken forward from next March.

Secondary information

Type: Written question
Reference: 440 c2115-6W; 36704
Session: 2005-06
Subjects: Community development Government assistance Tax allowances Phoenix Fund
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk