§ Mr. Stephen O'BrienTo ask the Secretary of State for Trade and Industry how many applications for Phoenix funds have been(a) submitted and (b) accepted for each nation in the UK since its inception; and if she will make a statement. [153535]
§ Nigel GriffithsInformation for the Phoenix Fund is as follows:
Country Applications received Applications accepted England 945 236 Northern Ireland 1 1 Scotland 1 1 Wales 0 0 The Government have allocated resources to promote enterprise in disadvantaged areas and under-represented groups. In England, that allocation has been designated as the Phoenix Fund. The devolved Administrations, who have responsibility for business support in their own countries, have made separate arrangements for using their allocations. However, for reasons of economy of scale and to ensure consistency with other existing provision, a limited number of elements of the Phoenix Fund provision to support Community Development Finance Institutions (CDFIs) apply across the whole of the UK.
§ Mr. Stephen O'BrienTo ask the Secretary of State for Trade and Industry if she will assess the(a) uptake and (b) effectiveness of the Phoenix Fund in disadvantaged communities. [153545]
§ Nigel GriffithsThe uptake of the Phoenix Fund has been encouraging. The Phoenix Development Fund is supporting over 90 projects testing out innovative approaches in providing business support for disadvantaged communities and under-represented groups. Up until the end of September 2003, the latest date for which figures are available, these projects had helped in the creation of some 7,700 new enterprises arid assisted over 7,100 existing businesses.
Among other projects being funded is the work of 55 Community Development Finance Institutions (CDFIs) that provide finance to businesses unable to obtain it from other sources. Up until the end of December 2003, those CDFIs have made over 1,050 loans to the value of over £6.5 million that have resulted in the creation of some 1,860 jobs in over 1.000 new and existing businesses.
The effectiveness of the Fund is currently being evaluated. An interim report of an independent evaluation of the effectiveness of the Phoenix Development Fund is due to be published shortly. A final report will be published in the second half of 2004. An independent evaluation of the effectiveness of the first two rounds of support for CDFIs is currently underway and will report in April.
§ Mr. Stephen O'BrienTo ask the Secretary of State for Trade and Industry what the(a) current and (b) projected budget for 2004–05 is of the Phoenix Fund; and if she will make a statement. [153546]
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§ Nigel GriffithsIn 1999 the Phoenix Fund was established with a budget of £30 million through to 2002–03 to promote enterprise in disadvantaged areas and under-represented groups. A further £70 million was allocated to the Fund in the 2000 Spending Round for 2001–02 to 2003–04. As a result of the 2002 Comprehensive Spending Review £50 million was allocated to the Fund for 2004–05–2005–06.
The budget for the Fund in 2003–04 is £30 million and £25 million in 2004–05.