BIDDERS to the Governments flagship enterprise fund have been urged to use their Local Enterprise Partnerships to bag a share of the cash pay-out.

The Deputy Prime Minister Nick Clegg yesterday launched the latest round of the Regional Growth Fund (RGF) which has made available an additional £1bn to stimulate private sector investment, create jobs, improve skills and assist in rebalancing the economy. This is expected to be the single largest grant funding available to businesses this year.

Labour said the scheme, which is again expected to be massively oversubscribed, had created far more losers than winners and was slow to pay out cash.

Almost three quarters of the firms pledged money from the first two rounds of the scheme had still not received their money, and some were kept waiting for up to ten months after winning bids announced in April last year, noted Chuka Umunna MP, Labours Shadow Business Secretary.

However, Mr Clegg reckoned that the fund would create more jobs to get Britain building and making things again.

"Funding from rounds one and two has gone to some extraordinarily promising manufacturing projects," he said.

North-East firms that received cash injections included Stockton-based plastic parts maker Nifco, which moved into a new factory this month as part of a major expansion. Nissan and steelmaker SSI were among the regions other successful applicants. "These are the kinds of projects that will lead their communities into brighter times, helping put industry at the heart of the UKs economy," added Mr Clegg who hoped that the scheme will put in at least 5 of private sector money for every 1 of public money.

Stephen Catchpole, managing director of Tees Valley Unlimited (TVU) said his team would again be on hand to co-ordinate programme bids to help small firms submit joint applications.

"I would say to any companies, big or small, that are considering making a bid to approach us, or their local authority, to help them put forward the best possible case," he added. "There are some really good projects out there and we can help them to avoid some of the potential pitfalls that could stop them from securing funding."

TVU and their counterparts in the North Eastern LEP (NELEP), which over sees Durham, Northumberland, Wearside and Tyneside will be hosting briefing sessions across the region in the upcoming weeks to encourage applications and to communicate the opportunities available through the fund.

Bidding closes on June 13.

John Spurr, director at Deloitte in the North East said taking the time to prepare and submit a quality bid was worthwhile.

"There are steps that business can take to improve their chances of submitting a successful bid. The first is to recognise that a bid to the RGF requires a credible, sound business plan that makes a compelling investment case. "Plan your project now, assess its merits and recognise it weaknesses. A well thought through bid, carefully planned and impartially reviewed, will boost your chance of success."