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Three West Midlands LEPs have led a consortium in a successful £25m bid for Regional Growth Funding (RGF). The cash is set to provide funding for advanced engineering supply chain businesses.

The combined bid was submitted under the name Advanced Engineering Supply Chain by the Greater Birmingham and Solihull, Coventry and Warwickshire, Black Country and Liverpool local enterprise partnerships (LEPs).

Funding worth £25m was granted in the government's second round of RGF investment. The four LEPs said it will allow engineering companies to capitalise on opportunities such as Jaguar Land Rover’s expansion in the UK.

The application is the first time a group of LEPs have jointly applied for a RGF grant.

The grant provides about ten to 20 per cent of the funding required by suppliers to prepare for orders, reducing the risk for other lenders.

Grants will be repaid in full, so the funding can be used repeatedly to provide for a number of businesses along the supply chain.

"By lowering the risk of investing in local supply chains, this funding will help to boost foreign direct investment into the LEP regions," said Andy Street, chairman of Greater Birmingham and Solihull LEP.

"It will create opportunities in a wide range of sectors, from aerospace and automotive to manufacturing and low-carbon R&D, further cementing the UK’s position as the leading European destination for inward investment."

Denys Shortt, chair of Coventry and Warwickshire LEP, added: "This has been designed to boost cross-border economic growth for companies, particularly in the automotive and aerospace industries, with the specific aim of boosting economic growth."