It was announced today that local authorities will receive greater rewards for promoting local business growth. Both Ruth Kelly, Secretary of State for Communities and Local Government and John Healy, Financial Secretary to the Secretary made the announcement.
The announcement comes at start of the second year of the three year Local Authority Business Growth Incentive Scheme (LABGI), which awarded £126million to 270 local authorities in the last financial year.
LAGBI is designed to encourage local authorities by providing them with financial rewards for promoting the greatest levels of continued economic growth in their local areas.
In this second year the scheme is to be made simpler and more rewarding by removing ceilings on the levels of payments that can be made to local authorities.
In a statement Ruth Kelly said: â€œThe Local Authority Business Growth Incentive scheme recognises and rewards councils who grow the business base in their area. I am delighted to announce today that in future we are abolishing the ceilings and increasing the potential for greater financial reward.â€
Whilst John Healy said: â€œWe want to encourage local authorities to do more to boost jobs, growth and enterprise in their area.â€