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Business Growth

Volume 494: debated on Monday 22 June 2009

To ask the Minister of State, Department for Business, Innovation and Skills what steps his Department is taking to stimulate business growth in super output areas with high levels of deprivation. (280736)

The Department works closely with Her Majesty’s Treasury, the Department for Business, Innovation and Skills, the Department of Work and Pensions, regional development agencies (RDAs) and with local authorities and others to stimulate business growth in local areas with relatively high levels of deprivation.

HMT, BIS and CLG jointly sponsor, and CLG manages, the Local Enterprise Growth Initiative (LEGI). LEGI has been allocated £296 million over the 2008/09 to 2010/11 spending period, for targeted enterprise growth in deprived parts of 26 local authority areas. Local LEGI programmes can target very small local areas experiencing high deprivation.

Jointly with DWP, CLG sponsors the Working Neighbourhoods Fund (WNF), which provides £1.5 billion investment over the 2008/09 to 2010/11 period to tackle worklessness in deprived areas. One of the uses of WNF is encouragement of enterprise growth to benefit people in deprived areas.

CLG works closely with RDAs and with Business Link to help ensure that the needs of deprived areas are addressed in their work. Business Link offers a suite of business support products under the ‘Solutions for Business’ portfolio.