The proposals were made following a Special Session held of the Essex Management Board, the body that represents the Essex public sector including the police, fire, health, skills and higher education sectors and which is chaired by the Leader of Essex County Council, Lord Hanningfield, who said:

"Our residents are crucial to us: supporting them is why we are here. And local government and our public sector colleagues are big players in the local economy. Local authorities in Essex will invest nearly a billion pounds supporting the county’s economy in 2008-09. It’s our duty to do whatever we can to assist in countering the effects of the economic downturn. I am delighted that the public sector in Essex has risen to the challenge and produced a set of practical proposals that will offer real help and assistance to Essex families and businesses.”

The group also pledged to continue to invest in small, local businesses, ensuring that they are supported during difficult periods. Essex County Council (ECC) will spend approximately £223 million this year with over 1620 local suppliers - awarding contracts worth £160 million to local small and medium enterprises (SMEs) and helping to stimulate the Essex economy.

The key proposal was to create a 'Bank of Essex', a special delivery vehicle to act as an intermediary and release European Investment Bank (EIB) funds for local SMEs. EIB allocates around EUR30 billion to support SMEs and establish a competitive, innovative and knowledge-based economy. Funds are made available through intermediary banks in the form of lines of credit or indirect loans.

This could be linked with the development of Foundation East, a community finance initiative providing high-risk, small business loans of up to £20,000.

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