4 December 2012 Last updated at 14:38 ET

City firms to be offered council cash to expand

Materials firm Pentaxia is one of a number of firms already considering bidding for funds

Derby City Council said it hopes a new £20m fund will help create more than 2,000 jobs in the city.

The authority is offering the money, half of £40m obtained from the government's regional growth fund, to help small businesses expand.

The rest of the cash will be used to build a new high-tech business park, planned for land near to Rolls-Royce on Wilmore Road.

Manufacturing firms are now being invited to apply for funding.

Paul Bayliss, leader of Derby City Council, said: "This is for high-tech jobs based on our strengths in planes, trains and automobiles. That's what we are looking for but we don't want to be closed-minded.

"What we are looking at is opportunities for people to come forward for grants or loans or opportunities for us to invest in their business to create jobs."

Work on the new business park, named the Global Technology Cluster, is due to start in March 2013.