Insider Media Limited

More than 40,000 jobs are set to be created in the West Midlands after it was revealed five major projects have been allocated cash from the government’s Regional Growth Fund (RGF). Submissions from Jaguar Land Rover (JLR), Alstom Grid and Birmingham Chamber of Commerce were all successful. The government said UK businesses received £450m-worth of investment, as bidding for the second round of the fund opens today.

A total of 72 bids from the West Midlands were put forward for a slice of the £1.4bn cash fund. Across the UK, proposals added up to more than £2.7bn.

Through the first round of investment, five West Midlands projects were successful. The Department for Business, Innovation and Skills said an estimated 6,193 direct jobs and 34,669 indirect jobs would be created through the projects.

The successful bids came from Alstom Grid UK; Birmingham Chamber of Commerce (on behalf of Birmingham City Council); Bosch Thermotechnology; Jaguar Land Rover and Prince’s Regeneration Trust.

Of the winning bids from the West Midlands, it is believed that the chamber's bid was awarded £15.7m which will go towards upgrading the A45 around Birmingham Airport.

Stafford-based engineeringing company Alstom told Insider it was granted £4m from the funding scheme. The company said the cash would "help develop essential R&D facilities".

Stephen Burgin, Alstom UK's country president, said: "We are delighted to be receiving this investment support, which is a major boost to expanding our Alstom Grid business in Stafford, as well as helping to reinforce our continued commitment to the region."

The government said it will aim to allocate the remainder of the fund - £1bn – through the second round of funding.

Lord Heseltine, chairman of the independent advisory panel, said: “I believe the £450m of regional growth funding announced today, which levers in around £2.5bn of private sector investment, supports projects delivering real jobs to real people on the ground now. They show government is getting actively behind the private sector to rebalance our economy.

“I have always believed in the need to give real support to small businesses for whom bidding for £1m is way beyond what they could normally expect. That's why we are providing more than £150m to give targeted support to small businesses which are the lifeblood of our economy.”

Heseltine added that he was pleased that “a number of high street banks” were on board with the government scheme to support microfinance through the community development finance association.

He said: “£30m of RGF will be matched by a further £30m from two banks. In addition we are in detailed discussion with the high street banks over options for schemes to get additional finance to small businesses in economically vulnerable parts of England. We want to develop effective mechanisms to support growing small businesses and small projects through the RGF.”

In total, 50 bids from across the country were allocated investment from the £1.4bn pot.

The government said that allocations were “conditional” and subject to the outcome of the due diligence process.