NEW businesses in Tavistock and West Devon will benefit from a major industrial development which this week received European funding.

More than £180,000 from the European Community will be put towards a £500,000 plan to build small office and workshop units at Pitts Cleave industrial estate on the outskirts of Tavistock.

This latest funding brings the borough's plans to build around 12 units for new businesses at the council-owned Pitts Cleave industrial estate a step closer.

West Devon Borough Council, which is contributing more than £45,000 towards the scheme was told this week that its bid under the Objective 2 Programme for the South West, had been successful. The remaining funds for the project will come from the South West of England Regional Development Agency.

David Incoll, borough council chief executive, said: 'Whilst the area was still feeling the effects of foot and mouth, it was vital that money was obtained to build for the future economic well-being of the borough. Without that, we will continue to lose many of our young people to other parts of England.'

West Devon's economic and leisure development manager Tim Beavon said the funding was great news for the borough.

'West Devon has a higher than average number of small businesses and this development should encourage these types of businesses to develop and, ultimately, lead to more job opportunities in the area.

'It is really to help people looking to set up new business, those taking their first step running and developing a business,' he said.

If planning permission is granted, work on the units could begin next spring and be completed by the start of 2003.

In addition to units catering for a wide range of fresh enterprises, an office for business support services is planned to provide advice and help for new small firms to get off the ground.

Objective 2 programme grants totalling more than £450,000 have already been awarded to projects in West Devon within the last six months. Schemes to benefit include business support, the North Tawton Development Trust and Rural Skills training.

The Objective 2 programme is designed to help areas where economic and wage levels are well below the average for the European Union.