Locate in Kent, the county’s investment promotion agency, has welcomed news that for the first time parts of Swale and Medway will join wards in Thanet and Dover, and be eligible to receive EU regional aid to support economic growth and attract investment.
The new areas approved by the European Commission means that these areas will now be eligible for Assisted Area Status (AAS) state aid – provided as regional aid – to promote the economic development of certain disadvantaged areas within the European Union.
Paul Wookey, Chief Executive of Locate in Kent, said: “This is a massive opportunity for these parts of the county as it now removes the barrier to Regional Growth Fund support for firms employing more than 250 people in these particular areas, while at the same time ensuring that smaller businesses are eligible.
“Kent has a lot to offer businesses, but it is clear that there are parts of the county that need additional support in order for them to achieve their full potential. This decision will make Kent more attractive to larger firms and support the widest possible economic growth.”
The decision follows a submission by the UK Government which put forward areas it believed should be eligible to receive regional aid, which included Kent Science Park near Sittingbourne, as well as parts of Rochester, Chatham and Gillingham that offer development potential.
Regional aid is typically offered as capital investment for businesses in less prosperous local economies designated for AAS. Programmes offering regional aid include the Regional Growth Fund (RGF) and the Advanced Manufacturing Supply Chain Initiative (AMSCI).
Although AAS does not guarantee regional aid funding, support is targeted at key employment areas and development sites in areas, where investment has been prioritised by Local Enterprise Partnerships and Local Authorities.
The success in putting the case for continuing and extending AAS in Kent was the result of the combined efforts of the South East LEP, Kent & Medway Economic Board, Kent County Council, the district councils of Dover, Thanet and Swale, and Medway Council.
Locate in Kent was also joined in promoting the expansion of the area’s eligible for AAS by a number of businesses and representatives, including Discovery Park, Tillett Racing Seats and Thanet Business Forum.
