HM Treasury Minister, Angela Eagle, and Barbara Follett, Minister for East of England and Richard Ellis began their afternoon with a private meeting with key regional business leaders, partners and stakeholders from across the region to hear first hand about the issues affecting industries in the region and to listen to their feedback on the government's response so far. The meeting was then followed by a visit to Light Blue Optics, a company which has developed an innovative laser-based miniature projection technology with help from EEDA.
The business support package from the East of England Development Agency will be targeted in particular at the industries which make up the 'engine' of the region's economy - start-ups and innovative and ambitious companies in the biotech and life-sciences, manufacturing and low carbon sectors. The joint response also recognises the extensive work already being done by local councils and the voluntary sector in boosting economic performance in their areas.
Speaking at today's event, Angela Eagle said:
"The East of England is being affected by global uncertainty but our regional economies are much stronger now after years of investment and growth. So here in the East of England we are determined the government along with regional and local agencies such as EEDA will all work together to ensure that businesses and households get the support they need."
Barbara Follett, Minister for the East of England, said:
"Because the economy of the East of England is more diverse now than it was in the past it is also more resilient and better able to deal with difficult times when, as they inevitably do, come along. That is why our response to the changing economic environment of the past six months has been particularly robust.
"Over the past few years the East of England, whose £110 billion, 450,000 business-strong regional economy is the United Kingdom's fourth-largest, has overtaken other areas to become the country's top location for private-sector research and development.
"The East of England also plays a vitally important part in the economy of the UK as a whole. Our ports, which are the country's gateway to Europe, currently account for 53 per cent of its container capacity and more than 20 per cent of its port employment. When the planned expansions at Felixstowe South, Bathside Bay and London Gateway are fully operational, the East of England will have over 70 per cent of the UK's container capacity.
"In these difficult times we must keep calm and continue to work to our strengths. I am confident that the region's innovative businesses, which are investing so heavily in the skills of their staff, have the right approach. But, more can always be done and that is why the chair of the East of England Development Agency, Richard Ellis, and I will be working with the business community to make sure that everyone is equipped to meet the challenges posed by the global economy."
The support package announced by the Ministers includes EEDA's plans to launch a revolving loan fund of over £5 million which is designed to directly address the lack of debt finance for early-stage ventures. The Ministers also highlighted EEDA's new £2.6 million enhanced manufacturing, design and innovation service over three years and the development agency's plans to launch a low-carbon venture capital fund in the near future, which with private finance should make £30 million available for investment in high growth, clean technology companies.
Richard Ellis was keen to explain that the joint response not only recognises the current problems facing businesses, families and residents in the East of England, and provides simple practical advice for them; it also shows the key strengths of the regional economy:
"This joint response from the Ministers and EEDA makes it clear that although businesses, families and residents are going through some tough times, the economy in the East of England is resilient and what we need is to balance immediate, effective support with a focus on the long-term goal. Our role during this period is to make sure the region's businesses and the 5.5 million residents know what support is available to them.
"The strengths of the regional economy, which has been one of the most robust economies in the first half of 2008, are that it has developed high-value, globally competitive businesses and is a top-three European centre for research and development. The £10 million business support package we are announcing today with the government will provide the incentive, advice and financial support to help key businesses succeed in the global economy.
"We continue to engage with government on a regular basis to ensure we get the support we need to address the challenges in our transport infrastructure and post-16 skills levels, and in tackling the pockets of deprivation that remain. We will be setting up the East of England Economic Council which will be made up of business leaders, major employers and academic experts who will provide advice and strategic direction on the performance of the regional economy."
Richard also highlighted the importance of delivering the region's Regional economic strategy which is due to be launched in September. It details the region's roadmap for economic growth to 2031, focussing on the rate of growth, and recognises that changes in global trading conditions and energy prices would be the greatest risks to the regional economy and sets out a range of actions designed to manage them.
He added:
"We are going to face tough times ahead but the East of England is an economic success story, many of us benefiting from the significant economic growth and development over the past 20 years. More businesses start up here per person than anywhere else in the country. If we work together and continue to share the steps to success and if we all agree and promote the key priorities for the region then we can create an economy that is even stronger, faster in response and more flexible to ensure prosperity for even more people and businesses in this fantastic region."
