British gov't to inject bln pounds to boost economy

An injection of more than one billion pounds (about 1.51 billion U.S. dollars) to boost the British economy was announced Thursday by Prime Minister David Cameron and his deputy Nick Clegg.

The new money will be allocated to local economies across English as part of a long-term plan to build a stronger economy and a fairer society, 10 Downing Street said in a statement.

Agreements have been reached with all 39 local enterprise partnerships (LEPs) in England to significantly expand nation-wide Growth Deals announced last July.

The funding will be devolved from central government into the hands of local authorities, businesses, colleges and universities to help train young people, create new jobs, build new homes, and start infrastructure projects, including transport improvements and superfast broadband networks.

In the statement, the British cabinet office explained: "Growth Deals are a revolution in the way our economy is run. For the first time ever, infrastructure, housing and other funding has been brought together in a single pot, and put directly into the hands of local authorities and businesses to invest with their knowledge of what is needed in their area to maximise their potential economic growth."

Cameron said local communities were being given the authority and financial backing to make spending decisions which worked for them, as part of a long-term economic recovery plan.

Clegg, the deputy prime minister, said: "Growth Deals signal the death of the culture where Whitehall calls the shots. I've seen for myself the difference it makes to give local areas real power over skills, business support, and infrastructure spending."

Greg Clark, minister for cities, said: "For Britain to fulfill its potential, every part of the country must be an engine of growth. Our successful program of City Deals and Growth Deals has put power and resources into the hands of local leaders. This billion-pound expansion of Growth Deals fuels the momentum that is now underway in our local economies."

The money will fund hundreds of projects from new road schemes, a 6,000-home lakeside development in Lincolnshire, train schemes to meet skill shortages, and an aviation academy. Endit