Coalfield areas 'missing out on Euro cash'

The sum amounts to nearly half of the money allocated to the region through the European Regional Development Fund (ERDF), which is for boosting regional economies and creating jobs.

Wentworth and Dearne MP John Healey has challenged the Chancellor to announce match funding from the Government in his autumn statement.

He said: “Coalfield areas are still struggling and need this support.

“These communities have a unique culture and character, and unique problems.

“Many have been hit harder in recession and will find it harder to grow again in recovery.

“The Government keep saying they want to balance the economy and encourage growth in the regions, but they aren’t following through with actions. This is money that would be used to create jobs and build growth.

“It’s like the 1980s when Europe was providing funding for areas like ours but the Tory government wouldn't give match funding to release it.”

If the funds cannot be matched by UK funding they cannot be drawn down from Europe. Two thirds of the funding then reverts to the UK Treasury.

Cuts in funding to local councils and the scrapping of Regional Development Agencies like Yorkshire Forward—who had the organisational capacity to deliver project and cash to match finance—have made the problem worse, Mr Healey said.

Much of the remaining ERDF funding could end up not being used without direct funding from central Government.

For the 2007-2013 programme, £1.16 billion of ERDF funding is unspent in England, and of all the English regions, Yorkshire and the Humber has the highest unspent amount.