Halifax Rack and Screw Cutting Co. Ltd are the first business to benefit from round two of the Regional Growth Fund and the only Yorkshire company with a successful bid in this round.

Forming part of the Leeds City Region local enterprise partnership package, the Fund will initially award £200,000 to the Halifax-based engineering company, creating twelve jobs and safeguarding seven others.

Support will eventually build into a £1.5 million modernisation of HRSC's production facilities to manufacture precision products for the construction, engineering, offshore and energy sectors

The company joins three others who received cash in the previous bidding round, with the next stage for submission of bids commencing in February. All four projects successfully completed a period of necessary checks by the companies and the government to ensure the deals offer the best value for taxpayers.

Business Secretary Vince Cable said: 'It's excellent that four more companies are benefiting from the Regional Growth Fund. This support continues to provide a significant boost to the local economies, lever in significant investment and will create jobs where they are needed most. The projects will support advanced manufacturing techniques, enable R&D to develop new products and improve skills, all of which are vital to support growth and help rebalance the economy.'

So far £1.4 billion has been conditionally allocated to 164 projects through two bidding rounds, and with each £1 of public money supported by at least £5 of private investment, the Fund has to date created or safeguarded more than 330,000 jobs. Many round one bids are now up and running, with 29 projects overall having now received their funding. More projects are expected to complete the legal checks and receive their funding in the coming months.

Deputy Prime Minister Nick Clegg said: 'Creating long-term jobs and long-term growth is our number one priority for Britain. For too long the UK economy has been too focused on the City of London.

'The Regional Growth Fund is already helping the economy grow in every region and across a range of industries. The 641 jobs announced today is more good news for people in Teesside, Essex, Crewe and Halifax.'

The Chancellor announced an additional £1 billion for the Fund in November, bringing its total value to £2.4 billion.