BUSINESSES in the region bidding for a slice of the Government’s £495m job creation fund could be disappointed as the scheme is predicted to be heavily oversubscribed ahead of today’s midnight deadline.

Ten days ago, Lord Heseltine, who has been appointed by David Cameron to manage the Regional Growth Fund, admitted that, at that stage, no bids had been received, but a deluge of 11th hour applications will soon be landing on the doormat of the former Tory Minister.

Staff at Tees Valley Unlimited (TVU), the Local Enterprise Partnership for the area, expect to be burning the midnight oil this evening as they help businesses put the finishing touches to their applications.

Bidders are looking to secure a share of the fund which has been earmarked to support private sector growth in regions of the country that need it most.

TVU is believed to have helped oversee about a dozen bids worth a total of £50m, but last night it was unable to confirm exact figures as late applications continued to arrive at its offices.

Public and private sector bids for improvements to the region’s transport network and key housing schemes, and companies which are in the processing and renewable energy industries, are among those attempting to secure funding.

Stephen Catchpole, managing director of Tees Valley Unlimited, said: “It looks increasingly likely that the scheme is going to be greatly oversubscribed.

“My team has been offering advice to bidders and we could be in for a late night on Friday as there have been some late applications which have just arrived.”

Mr Catchpole was reluctant to reveal the names of the businesses involved, but he confirmed there were some very exciting proposals and he remained optimistic that the region will be awarded a fair share of the fund.

The first round of bids has been aimed at some major projects that require a minimum of £1m of support, with such support being matched by significant capital expenditure or new, or safeguarded, jobs.

An announcement of successful bids is anticipated within 50 days.

Linda Edworthy, TVU director of policy and strategy, said: “Meeting the criteria for the first phase of funding was particularly challenging, but we believe the bids put forward are strong.”