The Treasury has approved a proposal by the Social Investment Task Force to generate £1bn of revenue ...
The new investment and tax break system will be of benefit to some of the country's most disadvantaged communities through the help of private investors.
The plans originally announced at the start of this month by the Treasury were mentioned during Gordon Brown's budget speech on Wednesday.
Regeneration in poor areas would be made possible through a tax credit to the value of 25% of an investment over a five-year period.
The tax credit would bring together investors, start-up businesses and linking them Community Development Finance Institutions that would enter a process of competitive bidding in order to get the tax break.
Anyone from a private investor to a bank or from charity to a large company could invest revenue in the projects to be handled by the CDFIs. This sum in addition to the tax credit it would get would be passed onto the enterprises.
The Chancellor of the Exchequer is determined to change the fact that there are poorer pockets in the country where there is a lack of business creation and where the need exists for a stronger enterprise culture that provides opportunities for those less privileged.
Brown said: "To tackle the causes of unemployment and low economic activity, we need a radical new approach to encourage enterprise and stimulate business-led growth in our most challenged communities. We want to put in place the best possible incentive structure to open up enterprise and employment opportunities for all."
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