A £30 million investment fund for the North West has been launched to spearhead a new drive to create new businesses and jobs.

The new regional venture capital fund will invest up to £250,000 in companies in return for an equity stake in the business.

The cash boost has been announced by the Government as the centrepiece of a package of measures designed to tackle the productivity gap between Britain and its major competitors.

The "Enterprise for All" package was unveiled in a joint announcement by Chancellor Gordon Brown, Trade and Industry Secretary Patricia Hewitt and Education and Skills Secretary Estelle Morris.

The Government is promising a radical review of red tape on businesses to improve competitiveness and encourage investment and enterprise.

The package of reform includes:

More incentives for enterprise with further cuts in capital gains tax and improvements to the taxation of share options.

A stronger competition regime to prevent cartels dominating markets.

A better tax environment for small firms, with a review of payroll services and improvements to VAT.

Modernisation of insolvency laws to reduce the penalties for honest failure.

A review of the Department of Trade Industry's support for business, starting with manufacturing industry.

Broadening the enterprise culture with better understanding of the role of business, the economy and enterprise in schools and colleges.