THE Government remains committed to provide key funding tipped to make an 'enormous difference' to small businesses as part of its Northern Powerhouse vision.

Since announcing his Budget in July Chancellor George Osborne has visited the north to reassure firms they will not lose out.

Small businesses in the region could benefit from funds of more than £400 million from a new wave of European funding.

The Government will continue to work with local enterprise partnerships and authorities to secure money from EU regional funds – it will come on top of the £382.5 million already being invested in the area through an existing scheme.

The plans would form the next round of Joint European Resources for Micro to Medium Enterprises (JEREMIE) funding for the Northern Powerhouse.

It is set to provide equity and loan finance to start-ups, growing early stage companies and larger companies with ambitions for strong growth.

There are three existing JEREMIE projects covering the north east, north west and Yorkshire, and northern Lincolnshire.

Mr Osborne believes small businesses are the 'lifeblood' of the Northern Powerhouse and believes the funding has the 'potential to make an enormous difference' to hundreds of small and medium-sized enterprises.