MORE cash is to be ploughed into helping businesses in Worcester – with city council chiefs pledging a fresh £200,000 to help them beat the struggling economy.

The money will be put into helping more companies take on new apprentices, special grants for newly created businesses and other ideas for encouraging the private sector to grow.

As a reward for encouraging the creation of new homes in Worcester, the Government is giving the city council £5.6 million to spend in whichever way it chooses.

The authority, which is getting the cash in instalments up to 2018, has earmarked £198,000 towards economic prosperity.

The move, which is subject to a vote at full council, will see the apprenticeship project beefed up, where companies are given £1,000 grants for taking people on.

As your Worcester News reported last month, 19 young people have found work from the scheme since it launched in 2011.

Some cash from the kitty will also be used to top up the grants scheme for small traders who are looking to give their new business a lift.

Grants of £2,000 are handed out to suitable applications which commit to match-funding it, pound for pound.

It is given to companies younger than five-years-old which show specific promise of being able to grow.

The council is also planning to commit another £500,000 of New Homes Bonus Cash towards helping residents known as NEETS – young people not in employment, education or training.

It is expected to lead to the creation of a new Skills Board, bringing together council chiefs, college and University of Worcester bosses, the JobCentre Plus and Local Enterprise Partnership.

Councillor Marc Bayliss, city council deputy leader and cabinet member for economic prosperity, said: “This is a very important area for the council and is led by a desire to help those out of work.”

City council chiefs have also revealed they could yet step in and help the retail sector if stores continue to struggle.

An in-house report says there is fear about “the incredibly tough trading conditions” and does not rule out help if the economy worsens.

It says: “There may also need to be support for the retail sector bearing in mind the incredibly tough trading conditions.

“Any such scheme would need careful design to avoid any state aid issues, but would also be funded from here. This is not a formal proposal at present, but will be reviewed if the position continues to deteriorate.”