Former deputy prime minister Lord Heseltine will head up the panel that selects which regeneration schemes will benefit from the government’s new £1bn Regional Growth Fund.

Today, the Department for Business, Innovation and Skills announced that Heseltine will lead its Approval Panel, which is to consider proposals for funding and recommend to ministers which regional projects should get a tranche of the money.

It is expected to target areas that are over-reliant on public sector employment, such as the North East, and find areas where there is scope for levering in private capital for regeneration.

Heseltine will be joined by former Social Democrat MP Ian Wrigglesworth, who becomes deputy chair.

Heseltine said: “It builds on the experiences I’ve had in helping people in deprived areas to help themselves and their communities achieve aspirations that, without schemes of this sort, might be impossible.

“This is about local people, local initiatives and local success in areas where the inevitable cuts will be most heavily felt.”

Business secretary Vince Cable said: “The Regional Growth Fund demonstrates that England is open for business. It will support enterprise and incentivise the growth of private sector-led local economies; mobilizing private sector investment across the country and creating sustainable private sector jobs. And Michael and Ian’s experience and strategic oversight will help ensure it is a success.”

The forthcoming white paper on regional economic growth will set out more details on the fund as well as local enterprise partnerships, which will replace Regional Development Agencies.

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