The Government's local economic growth strategy has been labelled 'inadequate' following news the second and final round of the Regional Growth Fund (RGF) has been oversubscribed by more than three times.

Business secretary Vince Cable announced yesterday the £950m cash-pot available received 500 bids demanding some £3bn in total. Following the coalition's decision to abolish the English regional development agencies, the fund has been established to encourage private sector job creation, especially in areas whose economies are deemed overly dependent on public sector.