328 Local authorities across England are to be awarded £316 million for encouraging business growth, Local Government Minister Phil Woolas and Treasury Minister John Healey have announced.

The Local Authority Business Growth Incentive Scheme (LABGI) sees councils who have encouraged business growth in their area receiving an unringfenced reward from Government. This is the second year of a three year scheme which expects to see up to £1billion allocated to local authorities by 2007/08. Authorities have received more than two and a half times the £126m of grant paid last year, and 50 more authorities have received LABGI grant this year.