§ Dr. KumarTo ask the Secretary of State for Trade and Industry if she will set out, including statistical information relating as directly as possible to the constituency, the effect on Middlesbrough, South and Cleveland, East constituency of her Department's policies and action since 8 June 2001. [184733]
§ Jacqui SmithThe Department of Trade and Industry (DTI) promotes a wide variety of areas' policies and are working with businesses, employees and consumers to drive up UK productivity and competitiveness to deliver prosperity to all. To achieve this the Department is involved in a number of regional programmes, with some being delivered through the Small Business Service (SBS), One North East and Business Links.
Although Department for Trade and Industry policies as a whole lead to increased prosperity and competitiveness throughout the country it is not possible to assess their impact at an individual constituency level. Some examples of specific initiatives benefiting Middlesbrough South and East Cleveland constituency are included in the information set out as follows:
Business Support
In his Budget statement the Chancellor announced a number of steps to help small businesses including an increase of capital allowances to 50 per cent. and raising VAT registration threshold to 58 per cent., all of which helps small businesses in your constituency. The Chancellor also announced that the Employer Training Pilot, run in Tyne and Wear for the last 15 months, would be made available to businesses throughout the north east. This will help businesses to improve workforce skills by providing training tailored to their needs.
Since the spring of 2001, the Business Link has assisted a total of 1,397 businesses to increase productivity and wealth in the Redcar and Cleveland council area. These businesses have been helped in a wide variety of disciplines including workforce development, finance, marketing and regulation.
In addition in the same area since the spring of 2002 316 businesses have been helped to start up. Business Link has helped would-be entrepreneurs to develop over 1,700 pre-start business ideas, stimulating an enhanced enterprise culture. From June 2001 to June 2004 1014W 190 Tees Valley Business Link customers have accessed a range of public funding (e.g. Innovation Action Fund and West Middlesbrough Neighbourhood Trust New Deal for Communities funding).
From April 2002 to date in the Tees Valley area, 69 Department of Trade an# Industry grants exceeding £14 million in total value have been awarded. These include Selective Finance for Investment in England—and its predecessors Enterprise Grant and Regional Selective Assistance (RSA)—and SMART. The projects being supported are expected to generate investment in excess of £138 million, creating over 1,600 jobs and safeguarding 695. These grants are administered by One North East and the Small Business Service on behalf of the Department for Trade and Industry.
European Funding and Tees Valley
In the north east, the European Social Fund Objective 3 Programme commenced in July 2000 and continues to 31 December 2007. The Programme funds organisations which seek to help individuals (employed and unemployed) to improve their skill levels and obtain employment. Funds can be accessed through co-financing organisations (CFOs) or through the Programme Secretariat. The Tees Valley Learning and Skills Council and Job Centre Plus are Co-Financing (CFO's) funded projects with a total value of £19 million. There is an additional £34 million available to support Co-Financing (CFO) projects in Tees Valley from 2004–07. Between 2001–04 under direct bidding arrangements projects from the Middlesbrough area received a total of £18.6 million.
The North East of England Objective 2 Programme (2000–06) provides a total of £434 million in support in the north east. Within this £267.97 million is made up of £69.62 million in Priority 1 and £198.35 million in Priority 2 and is available for a wide range of business support activity including generic business support, techn#logy and transfer access to finance. Tees Valley benefits from regional projects as well as those aimed directly at the sub-
Cross Government coordination
The Department for Trade and Industry has led the coordination of area specific initiatives with other Departments, such as the foot and mouth grants from the Department of Environment, Food and Rural Affairs (DEFRA), Farm Business Advisory Service and recently the targeted use of Department of Environment, Food and Rural Affairs (DEFRA) support to increase the uptake of business support in the disadvantaged areas of east Cleveland.