A £1.3m scheme which offers grants to help bring redundant buildings in Herefordshire, Worcestershire and Shropshire back into productive use has been launched by Advantage West Midlands in partnership with local authorities.

The redundant building grant scheme, which is being managed by Herefordshire Council, will offer grants of up to £62,000 to help enable buildings in the rural priority areas to be converted or refurbished for use in manufacturing, crafts or service businesses, office premises or retail outlets.

As much as 25% of the overall cost of the refurbishment or conversion could be provided from the scheme which is expected to assist 50 businesses and create or safeguard 600 jobs over three years. For example, the owner of a derelict barn in Herefordshire who was looking to turn the building into offices at a cost of £150,000 could apply for as much as £37,500 from the scheme towards the cost of the conversion.

The aim of the initiative is to create jobs by helping to provide premises for new enterprises and addressing demand for workspace in the areas most in need in the region's rural communities.

Mark Pearce, rural director for Advantage West Midlands, said: "This scheme builds on a similar scheme which has been in operation since 1982. If we are to address the serious economic issues facing our rural areas, it's absolutely essential we do everything can to provide business premises and create the framework for growth. One of the major problems for rural business is a shortage of suitable premises."

Councillor Charles Mayson, Herefordshire Council cabinet member for rural regeneration and smallholdings, said: "This scheme will boost economic regeneration in this rural area and interest is already high.''

l Anyone with a scheme that they feel will create new jobs and provide valuable workspace, can contact Dorothy Coleman, programme manager on 01432 260662 or by emailing rbgscheme@herefordshire.gov.uk