A NEW £60,000 funding pot for private business is set to be launched in Worcester after Brexit.

Worcester City Council's Labour leadership is expected to vote through a grant scheme to help start-up and growing firms amid the uncertainty.

Under the plan, the scheme will see £1,000 grants offered to new companies starting in the city and up to £3,000 for existing ones looking to expand.

It has been running since 2013, overseen by both the Conservatives and Labour during their spells in office, providing £47,000 to 42 companies so far.

Bosses at the Guildhall say the funds will help at a time when future sources of EU funding seem in doubt.

Councillor Geoff Williams, the cabinet member for economic prosperity and growth, said: "The vote to leave the EU means there's a big question mark over some of the sources of funding that our city businesses can call on, so it's vital the city council steps in to support our local economy.

"It will help us meet many of the council's objectives - securing investment for the city, increasing the number of Worcester businesses in high growth sectors like professional services and helping local firms get access to the support and finance they need."

The grants will mainly be aimed at companies that trade directly with the public rather than other businesses, and will need to be 'match-funded' from other sources.

A new report has been published on the spending, revealing how the £60,000 will come from New Homes Bonus cash - reward money from central Government in return for allowing property building to go through.

The cabinet is meeting on Tuesday at 7pm in the Guildhall to vote it through.

It comes just days after the Worcester News revealed how £25.5 million of European structural and investment funding has yet to be spent in Worcestershire.

The money is part of a £52.9 million pot designed to last from 2014 to 2020, helping in areas like rural tourism, start-ups, business advice, research and job creation.

Worcestershire County Council's leader Councillor Simon Geraghty has insisted they will continue their own investment plans “as normal” while Brexit negotiations take place.