Supporting businesses and communities through the recession

Posted by Geraldine Smith, Researcher, NLGN on March 11th, 2010


Gateshead Council has allocated £750,000 to stimulate business investment in Gateshead. The fund forms part of a wider package of support to help local businesses and communities to ride out the current recession, as set out in the Council’s £200 million 10 Point Plan for Economic Resilience.

The creation of a new Enterprise and Innovation Fund is designed to stimulate business and investment, and will be used to offer a range of financial grants to businesses over the next three years. Three separate grants are being offered:

  • Regeneration Grant – equivalent of up to 50% of the first year’s National Non Domestic Rates, and aimed at creative businesses, engineering firms and businesses using or developing low carbon or renewable energy technology,
  • Development Grant – up to a maximum of £20,000, available for projects that are developing workspace for creative, design and engineering sectors,
  • Business Start Up Grant – covering up to 50% of eligible start-up costs for new businesses in Gateshead to help with the purchase of productive equipment, ICT equipment including specialist software, other office equipment and improvements or alterations to business premises.
The importance of business investment to Gateshead’s economic future well-being cannot be underestimated, and the Council is committed to supporting investment now, in preparation for the expected upturn in the economy.

The new grants will put £250,000 into local businesses for the next three years, offering a valuable financial cushion and helping to boost developer confidence at a time when many are risk averse. This is aimed to provide businesses with the competitive edge they need when the recession ends.

A range of other measures have also been implemented to support businesses and communities to manage the impact of the economic downturn as part of the 10 Point Plan for Economic Resilience. These include:

  • Accelerating the Council’s £160 million capital programme and improving the pace of major regeneration projects
  • In partnership with Gateshead College, establishment of the North East Apprenticeship Company, which is putting in place measures to increase apprenticeships in the North East by 1,360 by 2013
  • Development of the ‘Starter for Ten’ initiative, which has transformed a redundant town centre building into a thriving creative cluster for small businesses through the provision of rent-free workspace
  • A range of activities to help residents remain active and healthy through designation of 2010 as Active and Healthy Year, and the successful achievement of the European City of Sport 2010
  • Building confidence and profile in Gateshead as a world class business location through the launch of Digital Summer 2010, which will showcase the best talent and technology to local, regional and national audiences.


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