Greg criticises Labour government over failure to back efforts to tackle worklessness in Newcastle (Greg Stone)

Greg criticises Labour government over failure to back efforts to tackle worklessness in Newcastle

December 6, 2006 12:00 AM
In The Journal

Wansbeck clears first hurdle to job aid Dec 6 2006

By The Journal

Hopes of encouraging people in a former mining area to become entrepreneurs may be backed by the Government.

The bid for cash by Wansbeck Council is among 13 called back for interview under the Local Enterprise Growth Initiative.

But a £20m bid by Newcastle to create 2,000 businesses has failed to get any further. Proposals by Redcar and Cleveland and a joint Middlesbrough and Stockton idea have also been shortlisted.

Wansbeck has a poor business start-up record and partners from private and public sectors, community and voluntary organisations hope to see self-employment rise by 40% over 10 years.

Newcastle's plan was to create a trading culture in parts of the city previously dominated by big employers such as shipyards.

It included a target to create 2,750 businesses in 10 years - 2,000 more than expected without the grant.

Newcastle Liberal Democrat councillor and regeneration consultant Greg Stone said: "The council has set out a very clear approach to targeting worklessness and promoting enterprise through our recent regeneration strategy, but it would appear that the Government is unwilling to support economic regeneration efforts in the West and East Ends."

A council spokesman said it was disappointed but "our determination to encourage enterprise in some of the most deprived parts of the city remains as strong as ever."