By Daniel Hunter
The Institute of Directors (IoD) today (Friday) responds to findings by the National Audit Office which show the Regional Growth Fund (RGF) “has not optimised value for money” and could have generated more jobs for the amount spent.
When the Government first consulted on the RGF the IoD warned that the success of the fund would depend on selecting “only proposals which were genuinely wealth creating”.
There were successful projects funded through the RGF, with some creating jobs for as little as £4,000. The IoD recognises that job creation is not the only category on which the fund should be judged, but some of the schemes involved are excessively expensive.
“It is disappointing that the Regional Growth Fund does not seem to be as efficient in spending taxpayers’ money as it should be," Alexander Ehmann, Head of Enterprise Policy at the Institute of Directors, said.
"Some of the projects that have been invested in are clearly very expensive in terms of the cost per job created. However, other schemes the RGF supports are proving very efficient, so the potential is there. The Fund’s administrators must learn from this experience, and shift money from underperforming schemes to those which are delivering the best results.”
Read the IoD’s consultation response from September 2010 here.
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