NEW jobs will be created thanks to improved grant funding, local enterprise partnership (LEP) bosses have said.

The York, North Yorkshire and East Riding LEP says the Business Grant Programme, backed by the Government's Regional Growth Fund, will help micro, small and medium companies grow.

The funding scheme contributes up to 20 per cent of capital costs for businesses looking to expand and take on new staff.

Bosses say the project threshold has been lowered to £25,000, providing a maximum grant of £5,000.

Barry Dodd CBE, chairman of the York, North Yorkshire and East Riding LEP, said: “This is a fantastic opportunity to support our micro, small and medium enterprise businesses by delivering a grant that fits in line with their needs.

“Yorkshire has a large number of small businesses, and this is a real strength.

“Their survival rates are among the best in the country.

“After all their hard work, we need to deliver to them support that is compatible with the size, growth and ambitions of their businesses.”

A board has been set up to work on applications, with the first round of successful funding expected to be awarded next month.