by business editor Trevor Sturgess

Small firms have missed out on their bid to create 3,500 apprenticeships across Kent, Essex and East Sussex.

The Federation of Small Businesses hoped to win cash from the Regional Growth Fund (RGF) to create the jobs through apprenticeships throughout the area covered by the South East England Local Enterprise Partnership.

An initial survey of more than 500 FSB members generated pledges of at least 800 jobs.

But the Government rejected the bid, preferring to back the £40m cash injection into Canterbury, Thanet, Shepway and Dover for high-speed rail track upgrades and grants for growth businesses.

While welcoming the successful bid, FSB Kent and Medway chairman Roger House (pictured above) said the decision on apprenticeships was disappointing.

"I think we all feared that the fund was unlikely to favour the South East and East of England," he said. "Once again, the North of England was the prime focus for allocation of RGF funds."