HISTORIC PRESS RELEASE : HM Treasury seeks the views of Leicestershire Businesses [January 2003]

The press release issued by HM Treasury on 21 January 2003.

Representatives from a variety of Leicestershire companies and other organisations met the Economic Secretary to the Treasury, John Healey, on Tuesday 21 January 2003 as part of a series of pre-Budget consultation visits throughout the country.

The East Midlands has benefited from a range of enterprise and productivity initiatives by the Government:

• Employment has risen by more than 98,000 and unemployment has fallen by 27,000 in the region since 1997;
• Over 54,000 young people in the region have gained new skills and experience through the New Deal, over 20,000 of whom have already moved into jobs;
• Making work pay for all, with the Working and Child Tax Credits, from 2003, will help 400,000 families in the East Midlands;
• Creating over 130 Enterprise Areas in the region, giving more people the chance to start and develop new business;
• Providing extra support to tackle barriers to business growth including the extension of the VAT flat rate scheme – the East Midlands has almost 38,000 businesses eligible to use the scheme;
• Tackling pensioner poverty and rewarding savings, with an estimated 300,000 pensioner households benefiting in the region.
• 45,800 children typically born in the region each year will benefit from further development of the new Child Trust Fund, ensuring that young people start their adult lives with a pot of savings.

John Healey commented: “The East Midlands has a strong tradition of industry and enterprise. We acknowledge the pressures that businesses are facing, and now I want to hear first-hand from local businesses how we can better support Britain’s entrepreneurs. This is a valuable discussion as we put in place preparations for the Budget.

“The Government wants to build a stronger, more enterprising economy and a fairer society. The East Midlands can make a huge contribution to that.”

The Government continues to support Regional Development Agencies as a strategic driver of economic development, regeneration and competitiveness in the regions. Through the Spending Review 2002, RDAs were granted a 4.5% real increase in resources between 2002-03 and 2005-06, taking the total single pot to £2bn by 2005-06.

Achievements of the East Midlands Development Agency include:

• The regeneration of a disused stretch of waterfront, to bring new prosperity and a better quality of life to the south east area of Nottingham City Centre;
• Championing the value of social enterprises as powerful tools against exclusion by investing £255,000 in a new multi-partner initiative to promote growth in the sector.

Local organisations involved in the visit include Wilson Bowden plc, Advanced Tapes, de Montfort University Business School, Hallam Construction, Northcliffe Publishing plc and the Leicestershire Chamber of Commerce and Industry.

The Minister also travelled to Lutterworth to see the work of learndirect at Focus Four which provides “any time, any place, any pace” learning for individual adults and businesses through three training centres in south Leicestershire.   Since becoming a learndirect centre in August 2001 and a learndirect Premier Business Centre in November 2002, more than 2,000 learners have enrolled for courses.