Thursday, 13 November 2008

Council Fights the Credit Crunch

Liberal Democrat led Devon County Council is responding to the economic downturn with a £5 million capital investment in the local economy. The £5 million capital investment is aimed at encouraging economic growth by supporting key projects. The funds will be allocated over three years with £1.7 million proposed for Devon Employment Space Strategy, £1.4 million for Skypark (a science park by Exeter Airport), £700,000 towards ICT Strategy, £450,000 for Renewable Energy for Devon and £750,000 for community infrastructure in coastal towns. Tim Jones, the Chairman of Devon and Cornwall Business Council has welcomed the funding. He described it as “a timely intervention that recognises the gravity of the current economic circumstances. Strategic investment in these sectors will give a massive boost of confidence to kickstart the initiatives and encourage the private sector to follow suit.".
The County Council Executive is to look at accessing EU funding to help the development of small businesses
Also DCC recognising the difficulties facing Devon’s small businesses, DCC itself is reducing its payment terms to creditors from the industry standard 30 days, down to 20 days.This means that the Council will endeavour to pay its suppliers 10 days sooner than previously to help businesses with their cash flows.
The announcement follows a report in the Financial Times last month that the retail giant Tesco has decided to extend its payment terms to non-food suppliers from 30 days to 60 days, effective from next month. DCC pays out approximately £400 million to suppliers per annum, so reducing their payment terms is expected to help businesses considerably.

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