Jobs Risk for City as Government Cancels Investment

3.28.16pm UTC (GMT +0000) Wed 26th Jul 2006

Manchester's Liberal Democrat Deputy Leader has voiced his concern over Government proposals that will cut investment and jobs in the City.

The Council's top-level Executive committee today received reports that the Government want to cancel the Regional Investment funding that brought companies such as the Bank of New York, Michelin and Ticketmaster to Manchester. The report states that delivering up to 112,000 jobs in the City region will be made more difficult because investment aid is to be cancelled.

Councillor Paul Shannon, Lib Dem Deputy Leader, stated:

"This is a bitter blow for Manchester. It seems Labour politicians in London believe that joblessness in Manchester is a thing of the past - in fact, Manchester's unemployment rate is still much higher than the UK or Greater Manchester average, and there is high dependence on incapacity benefit in the city."

He concluded:

"Manchester needs every penny of investment funding it can get to attract more companies to re-locate to the city. This is a serious blow to Manchester's economic future, and we fully support the Council's lobbying to get the Government to change its mind."

End

Notes to Editors:

Nine Manchester wards are presently eligible for Regional Investment Aid.

Business sectors that would no longer be eligible for Investment aid include manufacturing (most manufacturing businesses are eligible to apply at the moment); and businesses in service industries supplying the national market.