Small businesses get share in £231,000 aid

MORE than £230,000 is to be given to Oldham Council chiefs to help small businesses affected by the recession.

Communities Secretary John Denham said Oldham will be awarded £231,382 as part of an extra £50 million being given to councils from the Local Authority Business Growth Incentives (LABGI) scheme that rewards councils successfully promoting local growth.

Mr Denham said public-sector support could lessen the impact for struggling families and businesses during the current economic climate.

He wants to see councils use the grant to help small and new businesses in hard-hit areas who need extra support to get through tougher times so they can hit the ground running as economic growth picks up.

Mr Denham said: “Building economic recovery is the Government’s top priority and we firmly believe in the decisive leadership role councils have to play.

“Strong, vibrant, decisive local government is an essential part of our plans to promote growth and cut unemployment while rebuilding the public finances.

“We put the public sector in the lead while the private sector was struggling, spending and investing to lessen the impact on individuals, businesses and communities.

“We are giving councils up and down the country a further £50 million to support small and new businesses in hard-hit areas that might need a little jump start to get up and running again.

“Local councils, and councillors, with their unique democratic mandate, are best placed to provide financial support and local services that are responsive to the pressures being felt by families and businesses in local areas.”

Revenue from business rates is paid to central government and redistributed to local authorities through a formula.

The money is not ring-fenced and it is up to councils how they use or distribute it but it must be to used to encourage business growth.

Ministers say Government action through Real Help Now has supported many families and businesses, and is giving wider support including free business health checks, discounted rate bills for small businesses, tax payment deferrals, capital loans or help with bank loans for business growth, and a 10 day Government payment promise.