ANNOUNCEMENT 22 Jun 2010In June 2010, the British government announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 22 June 2010, the Regional Growth Fund (RGF) was announced. The main purpose of the RGF is to provide funding from 2011 to 2015 for regional and small businesses in Great Britain. The total value of the fund (Ł2.4bn) will be distributed in three rounds (Ł0.45bn, Ł1.05bn and Ł1bn) over four years.
In many cases small and medium sized businesses compete with foreign rivals and subsidies to the former alter competition in domestic and overseas markets. For example, Ł4.7m has been allocated to an early stage drug development company from the University of Liverpool, Redx Pharma. The company develops new treatments for microbial and viral infections for several medical conditions that occur across the globe, and hence competes with non-British companies.
Although presented as a fund for small and medium sized enterprises, it is far from clear from subsequent annual reports that the beneficiaries of this Fund are small firms. Subsequent reports refer to jobs saved as well as created suggesting that these funds may have been used to forestall industrial restructuring.