FIVE Devon businesses are to take part in a unique scheme which aims to boost profits and to increase the amount of money circulating within the local economy. The initiative, thought to be the first of its kind in the country, aims to measure the amount of money local businesses spend within their local area and to identify ways they can source and sell more locally, cutting costs, boosting the local economy, and reducing their environmental impact. The scheme, called Plugging the Leaks, will be run with businesses in West Devon, Torridge and North Devon by environmental charity Westden with Business Link and is based on research and methods developed by the think-and-do tank New Economics Foundation (NEF). NEF studies found that large outflows of money from local economies could be retained for longer and be made to work harder. They estimated that if businesses in Cornwall sourced an extra 1% locally it would be more than the amount received in grants from the European Union Objective One, and similar benefits would apply in Devon. The project has been partly funded by Devon Renaissance, the rural regeneration partnership organisation for the county, with a £31,000 grant towards the £86,000 project costs. Matt Parkins, project office with Devon Renaissance, said: 'We worked closely with Westden to develop the project as we recognise it could have enormous benefits to local economies by stimulating more trade between local businesses. We are delighted that so many businesses have decided to participate at this early stage of the project.' Following workshops in Tavistock, Beaford and Barnstaple, five firms volunteered for the scheme. Details are still being worked out with each business but they will work with Westden and Business Link over the next 18 months to examine their sourcing and supply, seeking ways to increase sales locally, whilst increasing their profitability. Westden Plugging the Leaks manager Polly Frost said: 'This work enables us to understand how purchasing choices can help contribute towards sustainable rural communities. Corporate social responsibility is becoming increasingly important for business and local sourcing and supply is an important element of this. 'The Westden initiative is an excellent opportunity for the volunteer businesses to get ahead of the game and to demonstrate success to others.' Andrew Copp, who is working with Westden and Business Link on the project, said the participating businesses will get a fresh insight into how they can address and embrace the wider issues to their immediate advantage. 'Plugging The Leaks is about positioning businesses to be ahead of the game, working with them to develop and implement winning strategies that take full advantage of emerging and exciting opportunities.' The scheme is also funded by the Leader + initiative, North Devon District Council, Torridge District Council and West Devon Borough Council. It is hoped eventually more businesses may get involved in the scheme and it could be rolled out across the South West.