West Yorkshire responds as vital business support funding cut by 50%

Following an announcement from the government’s Cities and Local Growth Unit that funding for Local Growth Hubs is to be cut by 50% in the coming financial year, the Mayor of West Yorkshire, Tracy Brabin, said:  

“This halving of funding for local Growth Hubs is a bitter blow for businesses in West Yorkshire and will have damaging consequences. The fact this announcement was made one day prior to the start of the new financial year adds to the great difficulties this cut causes. It is no way to run a country or to support an economy recovering from a global pandemic.

“The Growth Hub is an important element of our Business Support Service and the vital work to drive inclusive growth and opportunities for people in West Yorkshire, and to help the region’s economy recover.

“The practical implications of the cut are very concerning. Reduced funding would mean less money to support West Yorkshire’s small and medium-sized businesses, at a time when they need it most; as well as an overall reduction in the support and services we can offer to business of all sizes in the region.

“This is yet another example of Government departments not properly committing to ‘levelling up’ and delivering on the big promises made by senior Ministers.

“We will now consider our next steps and will continue to argue the case for more funding for West Yorkshire businesses and the power to invest funding where it is most needed."

Sir Roger Marsh OBE DL, Chair of the Leeds City Region Enterprise Partnership, added:

“This cut in funding for the Growth Hub is bad news for business in West Yorkshire. 

“And especially so, given there can be no doubt about the effectiveness and importance of the West Yorkshire Growth Hub. Since it launched in 2015, it has supported more than 20,000 SME’s to grow and develop. 

“Last year, it supported more than eight thousand businesses through the pandemic and with the adjustments required by Brexit. 

“A 50% reduction in funding and revealing this cut so very late in the day, will seem to many people like very poor recognition for this vitally important work”.