Devon welcomes Assisted Area announcement

Devon County Council has warmly welcomed the Government’s announcement today recommending approval for Assisted Area status to cover large areas of Devon up to 2020.

This status establishes the areas of the UK where regional aid and enhanced levels of Government assistance will be available to support disadvantaged economies through the businesses within these. Assisted Area status permits the granting of additional financial support to small businesses and large enterprise.

Previously only parts of Plymouth and the Langage industrial estate were covered. Coverage has now been massively increased to also cover large parts of Devon and Torbay, increasing population coverage by almost 81% from the previous map. A total of around 9,700 businesses will now be covered by this status.

The County Council has been working very closely with the Heart of the South West LEP and MPs to make a very strong case for a significant increase in the areas of Devon that are covered. Included in the announcement are the Newton Abbot area, which builds on the benefits of the South Devon Link Road, Totnes, South West Devon, Torridge and parts of North Devon, including Ilfracombe and Barnstaple. Assisted Area support will encourage business in these communities to grow, helping to drive forward Devon’s contribution to the UK economy.

Councillor Andrew Leadbetter, Devon County Council Cabinet Member for Economy and Growth, said: “This is fantastic news for Devon. Devon County Council has been working very closely with the Heart of the South West LEP, MPs and Government Departments to make the case for increasing eligible Government Assisted Areas across Devon, Plymouth and Torbay. The County Council has been lobbying for more of rural Devon and some of our market towns to be included in this map to ensure they achieve the maximum benefit for the local economy from the support that’s available.

“There is an overwhelming case for the granting of Assisted Area status to the areas of our county because these local economies are still not performing as well as many parts of the country, but there are significant opportunities within these areas, which we have highlighted to Government and we’re delighted they have backed our case. We have provided a sound and well-evidenced response to help shape the final Assisted Areas Map for the next six years. In particular we made a very strong case for Government help for North Devon and it’s encouraging that they have listened to what we said.”

The Assisted Areas, announced today by the Rt Hon Michael Fallon, Minister of State For Business and Energy, have been selected through a combination of the economic need of the locality as well as potential to use regional aid to encourage economic growth by attracting private sector investment.

Liberal Democrat MP, said : "Very welcome news for North Devon businesses this morning as a total of 11 North Devon wards, including Barnstaple and Ilfracombe, are granted Assisted Area status. The status offers an enhanced level of government assistance to support small businesses and large enterprises in disadvantaged areas.

"In November last year, I brought Lib Dem business secretary Vince Cable to North Devon to hear first-hand from some of our leading manufacturers just how much Assisted Areas status would benefit the local area. I'm glad he was persuaded of our case and has today given a boost to our local businesses.

"We may have some of the lowest wages in the country, but we have a uniquely strong manufacturing sector - Assisted Areas status now means we can unlock its potential for job creation and growth."