Details of Government support for business published

Business Secretary Vince Cable today confirmed Government support for multi million pound investments to secure low carbon and science projects in the UK and the Post Office Network.

This followed the Treasury concluding a review of significant projects announced since January to check they were affordable, value for money and that they fitted in with the priorities of the Coalition Government.

Government will continue with BIS projects for:

• Bristol and Bath Science Park - £2.6 million;
• International Space Innovation Centre in Harwell - £12 million;
• Discovery Research Ship - £75 million;
• National Renewable Energy Centre (NAREC) Offshore Wind Blade Test Site, Blyth - £11.5 million;
• NAREC Offshore Wind Turbine Test Site - £18.5 million;
• Offshore Wind Demonstration and Development - £12.4 million;
• Offshore Wind, Mitsubishi Collaborative R&D to support Mitsubishi and partners - £30 million;
• Support for the Post Office Network - £180 million ;and
• Spectrum clearance costs.

However, two previously announced projects are no longer to receive funding from Government. These are:

• Sheffield Forgemasters ;and
• Outokumpu – Sheffield

Dr Cable said the Government had both to reduce the deficit and help create growth. It was essential to strike the right balance between the two to lock in the recovery.

Business Secretary Vince Cable said:

“In the economic climate that we find ourselves in some of the commitments previously made by Government can now no longer go ahead.

“This is why it is so important that there is support for skills, science and entrepreneurship through more apprenticeships, spending on gold standard science research and slashing burdensome red tape.

“It is clear that Government can not simply continue to commit money to every project, but there are other things that government can do to secure the recovery.”

All of the projects which have not met the criteria will now be wound up or Government will seek alternative ways to ensure that they go ahead.

Dr Cable said Sheffield Forgemasters was a worthwhile project but the money had run out.

Business Secretary Vince Cable said:

“Sheffield Forgemasters is an important part of the UK’s ability to develop a civil nuclear supply chain and its specialist forging skills are in demand globally.

“However, we have to find a balance between reducing the deficit while helping the economy to grow. Against a backdrop of reduced public spending, the Government’s role is to create the right business environment and the right skills base. The Government cannot simply keep writing out cheques.

“The Government hopes the company secures private investment for this worthwhile project.”

He said the Post Office plays a hugely important social and economic role in communities throughout the UK.

“We will protect the £180m of Government funding for the Post Office in 2011/12 to maintain the network at around its current size.”