Written question asked by Lord Beecham (Labour), in the House of Lords. It was answered by Baroness Wilcox (Conservative) on Thursday, 11 November 2010.

Economy: Growth

Question: To ask Her Majesty’s Government whether they will reconsider the decision to require a minimum bid level of £1 million from the Government's £1.4 billion Regional Growth Fund in light of concerns expressed by the Federation of Small Businesses.

Answer: The Government held a public consultation about the Regional Growth Fund, one of the questions in the consultation was on the suggested minimum bid threshold of £1 million. There was a wide variety of a views expressed on the level of the threshold, some arguing for a lower threshold, others arguing for a higher threshold. On balance, it was decided to operate the fund on the basis of a minimum threshold of £1 million. This should encourage a wide diversity of bids, harnessing innovation from all sectors. Smaller proposals can be presented as part of a coherent package of projects, collectively meeting the needs of local economic strategies and the aims of the fund. In some areas, small-scale proposals may be put forward as bids to investment bodies and partnerships operating Regional Growth Fund programmes. The Government have committed the independent advisory panel to review the threshold limit after the end of the first bidding round.

Secondary information