Thursday, July 05, 2012A £60 million fighting fund to boost Nottingham’s economy and create 7,000 jobs will be unveiled today.
The City Deal fund, which also aims to create 300 apprenticeships, will be announced by Communities Secretary Eric Pickles and city council leader Jon Collins
The deal will also aim to:
• Provide money to invest in a ‘creative quarter’ of high-tech firms
• Improve transport and introduce super-fast broadband
• Encourage university graduates to stay in the city by offering grants to set up businesses
• Turn Nottingham into a ‘low carbon city’.
The overall figure could rise to £90 million as there is potential for a further £10m from the Government and £20m from a separate Regional Growth Fund bid.
Mr Collins and a team of councillors and officers hammered out the deal which will see the Government give up to £25m towards establishing a creative quarter around the Lace Market supported by a pot of money to help fledgling businesses and keep graduates in Nottingham.
In particular, the council, with the support of Communities Secretary Eric Pickles, is targeting the city’s growth sectors – creative firms, life sciences and green technology where Nottingham is perceived to be strong,
Coun Collins said: “In Nottingham we have much to be proud of. Our city is safer, cleaner, and greener than it has ever been, and through our investment in projects like the tram and the station we have delivered major improvements to infrastructure.
“But we cannot stand still. Through our Growth Plan we will help Nottingham become, once more, a city that designs and makes things.
“Key to the City Deal is Nottingham’s new creative quarter. This is a significant step forward and a bold statement that Nottingham is prepared to think differently to effect change.
“This deal provides a platform for the next generation of Nottingham entrepreneurs to carve out their future, create opportunity and jobs, and lead Nottingham to an exciting new future.”
Nottingham remains home to Boots, which manufactures most of its own-label products at Beeston, but Raleigh moved bike manufacturing overseas.
Imperial Tobacco makes approaching 40 billion cigarettes a year at Lenton.
Lace-making in Nottingham is essentially an historic industry.
The City Deal has been shaped over a number of months in conjunction with the Cabinet Office and other Government departments and their ministers, such as Business Secretary Vince Cable and Deputy Prime Minister Nick Clegg.
The Government came up with the idea of City Deals for Britain’s core cities, which would be specifically designed to meet local objectives. They were seen as a method to encourage cities to introduce elected mayors which Nottingham, among others, turned its back on.
Mr Collins and Communities Secretary Eric Pickles had previously clashed over the city’s refusal to publish expenditure over £500 but have healed the rift to show they can work together to stimulate Nottingham’s economy.
Today, Mr Pickles announced a slice of £25m from the Government to kickstart the project. Nottingham is the only UK city to be given money up front.
There will be a further £10m in 2014-15 if Nottingham can show it is successful in achieving the agreed aims.
The county-run pension fund looking after the pensions of local authority workers across Notts, is being tapped up for a further £10m which can be injected into projects with the right level of returns.
And a group of wealthy individuals will be asked to invest £10m in a fund led by local businessman Nat Puri.
“This adds up initially to a fund of at least £45m and potentially £55m to invest in Nottingham,” said Coun Nick McDonald, who holds the city’s economic development portfolio.
“Nottingham has never seen anything of this size. It also helps overcome the problems of the banks unwillingness to lend.”
A major initiative is developing a creative quarter centred on the Lace Market to try to copy the success of the fledgling bio-tech firms at BioCity, home to about 70 and growing.
Today’s initiative will be incorporated into the city’s economic growth strategy to be launched next Monday at Nottingham University by Alex Gourlay, chief executive of Alliance Boots Health and Beauty.
Mr Gourlay is a member of the Nottingham Economic Resilience Forum which was set up to identify the city’s economic strengths and weaknesses and look for opportunities.
