Baroness unveils £5.4m funding for Middlesbrough and Darlington

Communities Minister, Baroness Hanham has unveiled nearly £5.4m of European Funding to create jobs and wealth in Darlington and Middlesbrough.

The European Regional Development Fund Competitiveness Programme 2007-13 will invest £3.9m in the Darlington Business Growth Hub on the Central Park Enterprise Zone.

The European Regional Development Fund is investing £2.1m in Middlesbrough’s Boho 5, part of the DigitalCity initiative, and forming part of the wider regeneration of the Middlehaven area, in the St Hilda’s Area Enterprise Zone.

Baroness Hanham said: “I am delighted to formally announce European Regional Development Fund investment for the Darlington Business Growth Hub and Boho 5, which will see the development of high quality premises enabling new and growing businesses to create jobs and wealth in Tees Valley.

“The investment will support the development of the local Enterprise Zones, acting as a catalyst for further economic development opportunities and setting the areas in motion for success.

“It is a privilege to visit the Tees Valley and see first hand how the European Regional Development Fund is creating inspiring entrepreneurs that are reaping the rewards from initiatives like DigitalCity and Redcar and Cleveland Creative Industries.”

The funding will be matched by nearly £5m Government funding, via the Homes and Communities Agency.

Both the Digital Hub and Boho 5 will offer links to business support services, high quality workspace and business support services will encourage, support and enable both business start-ups and existing businesses to grow.

Darlington Business Growth Hub will comprise 3,200 m² of office space for small and medium enterprises and is due to open January 2015.

The project will see the creation of at least 25 new businesses and 350 new jobs within the first 15 years of operation.

The project is being managed by Darlington Borough Council with the Homes and Communities Agency providing match funding of £3m.

The Hub forms part of the wider regeneration of Central Park within the Tees Valley Enterprise Zone, a 9.3 hectare site targeted specifically at digital companies.

The development of the facility will kick-start enterprise development on Central Park and form a visible gateway to the Enterprise Zone.

Councillor Bill Dixon OBE, Leader of Darlington Borough Council and Vice Chair of Tees Valley Unlimited said: “We are delighted to hear of the award of European Regional Development Fund investment for our Business Growth Hub.

“When we talked to businesses in developing our Economic Strategy the clear message we got from them was a need for purpose-built business start-up facilities with support services incorporated into them.

“We will now work with our partners to ensure that we can deliver a sustainable operation that can not only meet the needs of local companies but also act as a catalyst for other businesses to locate on Central Park – the Council’s priority regeneration scheme.”

Boho 5 is part of the Digital City programme of projects which is developing a ‘super-cluster’ of digital companies in the area, it will provide 2,322 sq m of business accommodation for small and medium enterprises in the digital and creative sectors.

Boho 5 is being managed by Middlesbrough Council and builds on the success of the DigitalCity programme and within the first 10 years of operation at least 250 new, well paid and highly skilled jobs will be created.

Middlesbrough Council and the Homes and Communities Agency are providing match funding of around £2m and building will start on the business premises later this year and the first businesses will move in in January 2015.

Councillor Tracy Harvey, Assistant Executive Member for Middlesbrough Council, said: “Digital City and the wider Boho initiative are prime examples of Middlesbrough’s vision and ambition for its business community, and this welcome funding will help us take the project on to the next level.

“The town has a growing reputation both at home and abroad for its expertise in digital media and the creative industries, and Boho 5 will play a vital role in nurturing the next generation of businesses which will define the town’s future.”

Baroness Hanham met with creative businesses at DigitalCity who have benefited from European Regional Development Fund investment such as Sound Training for Reading.

She toured the Redcar Beacon and Digital Hub, which benefited from over £4.65m ERDF investment as part of the Redcar and Cleveland Creative industries project, meeting with entrepreneurs such as Mia Braine of Babulous Glass, based in the Beacon.

David Curtis, Executive Director at the Homes and Communities Agency said: “The confirmation that these schemes will receive European Funding means that the Homes and Community Agency will invest an additional £5million in creating jobs in the Tess Valley.

“We will invest £3million in the Darlington Growth Hub to help create a purpose built facility that will help new businesses grow and supports local jobs. Our £2million investment in Boho 5 is a key part of our wider long term investment in Middlehaven to help create educational and employment opportunities for Middlesbrough.”