Government decision means North West could lose cash.
February 3, 2009 12:00 AM
North West England could lose out on millions of pounds of european money due to a Government decision to return cash from the EU to London.
The European Commission has offered a six month extension on its December 2008 deadline to all countries for unused European Regeneration funds, as part of a £178bn economic stimulus package.
But the Government has decided not to let English regions apply - despite the fact Scotland, Northern Ireland and Wales are set to benefit from the money. What is more, the value of the grant is set to rise by a fifth because of the fall of the pound compared to the Euro.
North West Euro-MP Chris Davies has condemned the Government decision to allow European money earmarked for the North West to be returned to London.
Lib Dem MEP Chris Davies said: " The North West keeps getting shortchanged by central Government.
"It is ridiculous that our deprived areas within our region have been denied the chance to spend extra european money just because the Government doesn't think the money can be spent within the set deadlines.
"Projects in regeneration areas are always ready to go and I believe that more of this money could have been spent on regenerating the North West if the Government had accepted the European Union's offer.
"This is a poor excuse and a smokescreen for a Government in dire financial trouble to take money out of deprived communities in the North West
"It is more likely that the Government has realised that any unclaimed money can be taken off the UK's contribution to the EU, going right back into Whitehall pockets, rather than being spent on projects vital to the North West."
The EU said the UK had claimed only 14.8bn of its 16.4bn total for 2000-6 by the 2008 deadline.
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