Bids are open for the second round of the government’s £1.4bn Regional Growth Fund to encourage enterprise, growth and jobs in the private sector and support areas and communities that are dependent on the public sector.

The government anticipates that more than 27,000 jobs will be directly created and safeguarded, with close to a further 100,000 jobs in associated supply chains and local economies as a result of the first round when the government invested £450m.

This invetsment is expected to leverage more than £2.5bn of private sector investment.

Deputy Prime Minister Nick Clegg says: ”I was bowled over by the quality of the bids. This money will now help create and safeguard jobs in some of the communities worst hit by the economic downturn.

“We need to spread opportunity across the whole country, drawing on our many talents. I know that with the right support these businesses can work with their communities and together play their part in leading the country back into prosperity.”

Business Secretary Vince Cable adds: “The Regional Growth Fund is a competitive fund and we wanted to see proposals that created jobs in the private sector, in areas of deprivation and that are at risk of suffering from public sector cuts. I’m confident that the successful bids we have chosen will deliver on this.”