KNOWSLEY Council is setting aside £1m to help struggling companies survive the recession.

Next month the council will launch a business support fund to help companies that have hit financial difficulties to get through the downturn and retain their staff.

Businesses will be asked how the money should be spent.

The fund was debated at Friday’s Knowsley Business Summit in Kirkby, which saw 100 business leaders and regeneration officials debate the state of the borough’s economy.

Knowsley’s executive director for regeneration Nick Kavanagh said: “This fund has been set aside from the council’s budget to assist businesses in difficulty.

“They may need help with property-related issues, training or business rates to assist them in staying afloat.

“It would be terrible if we lost another 3,000 jobs. That £1m will pay itself back tenfold.”

Mr Kavanagh is still working to attract new investment but said his priority during the recession was safeguarding jobs at existing companies. He has also pledged to try to secure more cash for Knowsley firms.

Friday’s summit was organised by MPs George Howarth and Eddie O’Hara, along with the council. Business people including Nigel Graham, managing director of Kirkby chipboard factory Sonae, spoke about how the recession was hitting their businesses.

Issues debated included the need to cut red tape and to freeze business rates.

The MPs have pledged to produce a report for Business Secretary Lord Mandelson to highlight those concerns.

Knowsley South MP Mr O’Hara said: “The messages from our business community about the specific support they need from the public sector are very clear.

“Organisations need to know what support is available and how they can access it and it must be available now before it is too late.

“We will be urging government to take action and support our businesses during the downturn.”