EEDA - East of England Development Agency

EEDA welcomes help for rural businesses during recession

30 April 2009

The chair of the East of England Development Agency (EEDA) has welcomed the announcement by the Environment Secretary today that will increase financial aid for rural businesses in the East of England and help them through the downturn.

The announcement by Hilary Benn lifts the funding restriction on a range of grants from 50 per cent to 100 per cent of the cost of each project funded under the government’s £3.9 billion Rural Development Programme for England (RDPE), part of which is managed by regional development agencies.

Richard Ellis, chair of EEDA, said:

“This is good news for rural businesses in the region and we are very pleased that the Environment Secretary has responded to our request to raise the funding limit. This gives us greater flexibility when awarding grants through the scheme and will mean that projects that can demonstrate a need for the higher level of funding can now be considered through RDPE.

“Today’s announcement will also help to support future growth sectors in the regional economy, such as renewables, bio-tech and low-carbon projects, including those with a commitment to resource efficiency. It will make it easier for rural businesses that are looking to diversify or capitalise on the opportunities presented by these new emerging sectors to access funds.

“As the findings of a recent independent study showed, EEDA is having a significant and positive impact on the regional economy. A recently published independent report by PA Consulting and SQW showed a return of £4.75 for every £1 invested and that further benefits are likely to see a return of £7.60 for every £1 spent.”

“The relaxation in the funding limit for RDPE projects will give EEDA greater spending power and increase our ability to help both alleviate the effects of the recession and generate future economic growth and prosperity in the East of England.”

• EEDA welcomes help for rural businesses during recession   (DOC 177KB)