Deprived boroughs in London have failed in their bids for a share of up to £160 million of government economic development cash.


Herpreet Kaur Grewal

Deprived boroughs in London have failed in their bids for a share of up to £160 million of government economic development cash, according to sources across England’s local authorities.

Tower Hamlets, Newham, Hackney, Greenwich and Waltham Forest councils’ bid for a £26 million share of the second round of the Local Enterprise Growth Initiative (Legi) fund is not among the 13 to have been selected for interview, according to sources close to the bidding process.

The identity of the 13 bids that have been called for interview has been obtained by Regeneration & Renewal from the councils concerned.

The Department for Communities and Local Government refused to confirm that the interview list was equivalent to a shortlist. But experts on Legi said that all winning bids in the previous round were first called in for interview, and the round two winners would almost certainly come from among the 13. This would mean no council south of Norwich would win a share.

Legi cash must be spent on developing enterprise in deprived areas, and 86 English local authorities that receive neighbourhood renewal funding were eligible to submit bids. Fifty-two bids were made for the round two cash. A total of 13 mainly northern bidders (see box, above) have confirmed they have been called for interview.

The round two winners will share £60 million in 2007/08, plus – subject to approval in the forthcoming Comprehensive Spending Review – £100 million in 2008-10.

THE 13 LEGI BIDS CALLED FOR INTERVIEW
– Blackpool
– Doncaster
– Sheffield
– Leeds
– NE Lincolnshire
– Norwich
– Pennine Lancashire
– Derby, Nottingham & Leicester
– Liverpool & Sefton
– Middlesbrough & Stockton
– Wansbeck
– Redcar
– Stoke