HISTORIC PRESS RELEASE : “North West a dynamic, productive region” says the Treasury [September 2002]

The press release issued by HM Treasury on 13 September 2002.

The dynamism and productivity of the North West is highlighted by John Healey, Economic Secretary to the Treasury and Ed Balls, Chief Economic Adviser to the Treasury in speeches to the business community today. The speeches are part of a review of regional economic strategy led by the North West Development Agency at the De Vere Whites Hotel, Bolton.

“The north west is a dynamic and productive region, with some of the largest corporations in the world locating here,” said John Healey. “However levels of investment and skills are still too low. The North West Development Agency  plans are right to highlight these challenges.”

Latest figures show that 2700 new businesses started up in the region in 2001, and the region has the highest number of start-ups of any region outside London. John Healey continues, “We in government recognise the highly innovative and entrepreneurial spirit of the region, and we are introducing policy changes and investment to boost enterprise.”

“By cutting corporation tax to 10% and introducing the VAT flat rate scheme, we have benefited around 100,000 businesses in the north west. High productivity means high growth, high employment and increasing wages for the people of the region.”

Ed Balls commented, “This year’s Budget and Spending Review released substantial new resources to support investment, growth and jobs in the North West region.

“And in the forthcoming Pre-Budget Report the Chancellor will set-out further new measures to promote enterprise and small business creation, particularly in those parts of this region where unemployment is higher and business start-up rates below the national average. The challenge now for the North West Regional Development Agency is to use these new resources and greater flexibility to raise the rate of business creation.”

The government has many initiatives to support business in the north west:

• Regional venture capital funds designed to fill the equity gap for investments lower than £1/2 million for small businesses;
• Business planning zones allowing development to go ahead without planning permission, so long as they meet the required minimum criteria;
• Eight centres of vocational excellence;
• Two new technology institutes;
• Research and development tax credit (for the whole country).