by business editor Trevor Sturgess

Track upgrading paid for from a £40m injection is set to cut journey times between East Kent and London.

Yesterday, the Government accepted the Expansion East Kent bid for funding to create or safeguard up to 5,000 jobs in Canterbury, Thanet, Shepway and Dover.

Part of the money will pay for better track so that journey times between London and Thanet will fall to just under an hour.

Although the cash will not cover the cost of a Manston Parkway station, it could boost the project's chances.

New and existing growth businesses will be invited to apply for funds, although the amount of each individual grant will be capped. The cash could start flowing early next year and will be available until 2014.

Kent County Council leader Paul Carter said it was excellent news. "It will help and support the high-speed trains on an upgraded line at slightly greater speed than they are currently going to bring the journey time to Thanet to an hour or just under. It could indeed pave the way for a parkway station."

Grants to businesses would fill the "significant void" created by banks unwilling to lend because of the economic climate.

But banks are to be involved in helping officials choose winners and losers.

Cllr Carter said they would work alongside on risk assessment.

"It will up to us to make sure we select the fight businesses to support thoses that will lead to economic growth and job creation," he said. "We don't want to rush off and support the wrong businesses."

Paul Wookey, chief executive of Locate in Kent, said: "This is really good news for east Kent. With Enterprise Zone status for Discovery Park at Sandwich already granted, the area now has a really attractive package to offer companies looking to invest in the area, or already based there."

Visit Kent will also benefit from a share of the cash for tourism promotion. Sandra Mathews-Marsh, chief executive, called it a "Red Letter Day".