The Marches Redundant Building Grants Programme is a £5.1 million project which has won backing as one of 119 successful bids to the Government’s Regional Growth Fund.

The project will see small businesses and start-ups in Herefordshire, Shropshire and Telford & Wrekin given financial assistance to bring unused buildings back to productive economic use.

Endorsed by the Marches Local Enterprise Partnership, the project will be administered by Herefordshire Council with grants available to eligible projects across the Marches region.

Chairman of the Marches LEP, Dr Geoffrey Davies OBE, said the Redundant Building Grants Programme was expected to create 330 direct jobs as well as 165 indirect jobs, supporting more than 50 businesses. The new scheme will be launched in the New Year and run until March 2014.

He said: “We are delighted that a Marches project was one of the 119 announced as being successful in winning funding by Deputy Prime Minister Nick Clegg MP today.

“The £1.5 million will be used to provide capital grant support of between £3,000 and up to £50,000 to small businesses and start-ups to transform redundant buildings into a base for their enterprises.

“The programme supports other wider LEP issues as well, helping to regenerate market towns, retain and re-use historic buildings and enabling business expansion. It will also provide an incentive for businesses considering relocation to the area and we expect interest to be high.”

Dr Davies said he was disappointed other applications for funding from the RGF in the Marches had not been successful. These included a bid to support the £4.5 million upgrade of the electricity supply in Whitchurch and a £3.5 million bid from Harper Adams University College for a Centre of Excellence.

“However these projects are not dependent on RGF funding to go-ahead and we will be working alongside the applicants to explore other ways in which they can attract investment, including European sources,” added Dr Davies.

The Government today announced the successful projects would see 201,000 jobs created or protected nationwide, with around 37,000 will be directly created jobs, and more than 164,000 will be in the supply chain. The government investment will support nearly £6bn of private investment secured by the successful projects.

The RGF is a £1.4bn fund which is designed to encourage enterprise, growth and jobs in the private sector and support areas and communities that are dependent on the public sector.

Deputy Prime Minister Nick Clegg said: “I am delighted to be able to announce this boost to business, which will jump start growth and create jobs that last in the places that really need it.

“This targeted support for businesses across the country allows them to expand and create jobs. It unlocks private sector investment – with at least £5 put in for every £1 of public money.”

The Marches Redundant Buildings Grant Scheme will build on the success of the previous RBG programme carried out on behalf of the Rural Regeneration Zone. This scheme awarded £2.9m to 100 businesses across Herefordshire, Shropshire, Telford & Wrekin and Worcestershire between 2003 and 2011, and has created and safeguarded 743 jobs to date.