by business editor Trevor Sturgess

More than £40m is to be pumped into East Kent to help create up to 5,000 jobs and boost high-speed rail links.

The Government announced today that £40m will be allocated to the districts of Canterbury, Dover, Shepway and Thanet from the Regional Growth Fund (RGF).

Some of the cash will be invested in critical infrastructure that could pave the way for a Manston Parkway station.

There are hopes that the money will encourage business expansion and growth, with the aim of attracting 500 new businesses to an area that is being badly hit by the closure of the Pfizer plant in Sandwich.

Private sector investment could come on the back of the RGF money and experts estimate the total value of the package could be as much as £300m.

The grant package, unveiled by Deputy Prime Minister Nick Clegg, also includes money for Vestas Technology UK, a company that is considering setting up a wind turbine factory on the Isle of Sheppey.

"It’s very good news," said a Kent County Council spokesman.

The cash for Kent is part of a £950m nationwide package that aims to help create and safeguard more than 200,000 jobs.

The £1.4bn RGF has backed 119 bids from businesses and local enterprise partnerships. Some critics have said the money is not enough to meet all needs, but agree that at least it is something to stimulate growth.

Mr Clegg said: "I am delighted to be able to announce this boost to business, which will jump start growth and create jobs that last in the places that really need it.

"This targeted support for businesses across the country allows them to expand and create jobs. It unlocks private sector investment – with at least £5 put in for every £1 of public money."