A fund of up to £125m has been established with the aims of helping existing supply chains grow and achieve world class standards while encouraging major new suppliers to set up and manufacture in the UK.
The initiative is based on an existing bid to the Government’s Regional Growth Fund (RGF) led by a consortium of four Local Enterprise Partnerships (LEPs) and Birmingham City Council which focussed on the automotive and aerospace sectors. This initiative is building on the successful RGF bid put forward by this consortium but now has a much wider remit in terms of geographical and sectoral coverage.
The fund will support applications that deliver economic growth. They should be in established advanced or high value manufacturing sectors, or in newer growth areas where the UK is well placed to take a global lead, such as energy renewables and other low carbon sectors. It provides a flexible approach to funding (grants and loans) and is designed to promote closer collaboration within the supply chain and to address market failures. A market failure is where the market, by itself, is not leading to an economically efficient outcome. In practical terms funding will be available to support the following areas, subject to the normal State Aid rules:
the purchase of capital equipment
R&D activity which improves manufacturing equipment, systems or processes
specific training and skills development to support the project.
The competition opens on 29 March 2012.
A briefing day for potential applicants is on 27 April 2012.
Information on closing dates, the competition brief and guidance for applicants will be available here shortly.
For further information, download the click here.