Millions of pounds earmarked for the North East lie unallocated while growth has flatlined
Labour is calling on the Tory-led Government to get a grip and sort out the mess surrounding EU funds for regional growth, which is putting £125m for the North East at risk.
The unallocated funds are part of the European Regional Development Fund (ERDF), which exists to boost growth and jobs regionally, particularly in disadvantaged areas.
Gordon Marsden MP, Labour's Shadow Minister for Further Education, Skills & Regional Growth, commenting, said:
‘It beggars belief that when the North East is crying out for cash and investment to boost jobs and growth, this Government's actions is putting £125m of potential funding at risk, and over £1billion across England.
"Labour's five point plan would help boost regional growth now with a one year National Insurance tax break for small firms taking on extra workers and bringing forward long-term investment projects."
Stephen Hughes, Labour's MEP for the North East said:
"This demonstrates again that the Tories and Lib Dem's decision to axe One North East was short-sighted and reckless.
"In a week when we've seen hundreds more jobs lost in the area, government ministers urgently need to come forward with a plan for growth in this region."
