Government throws away £44 million for the East Midlands in EU funds (South Leicestershire Liberal Democrats)

South Leicestershire Liberal Democrats <cathy.m.bailey@btinternet.com>

Government throws away £44 million for the East Midlands in EU funds

February 10, 2009 12:00 AM
Originally published by East Midlands Liberal Democrats

Bill Newton Dunn, the Liberal Democrat MEP for the East Midlands has today expressed his anger at the news that the Government has rejected an estimated £44 million of EU money for the region that was intended to combat the recession.

The EU Commission had offered £671 million in unspent European Regional Development Fund money to England to be spent across the regions most affected by the economic downturn. The East Midlands would have received a substantial part of this money, an estimated £44 million.

But despite taking the money for the devolved regions of Scotland, Wales and Northern Ireland, the Government decided not to pass on the money to English regions as it 'did not make economic sense'. Instead, the treasury will be able to claim the money back from future contributions to the EU budget.

Bill Newton Dunn said, "I am appalled. It is incredible that Ministers have thrown away this opportunity to spend money now to kick-start the economy in the East Midlands. For the Government to turn its nose up at this type of funding at the present time shows that they are completely out of touch with the needs of local regions.

"The East Midlands is in desperate need of action. This money could have been put to good use and yet the government has instead decided to look a gift horse in the mouth. It is a scandal that this opportunity is being thrown away by the Treasury. We need every tool in the box to get the engine of the economy in East Midlands firing again."