WEST MIDLANDS RISKS LOSING £185 MILLION WARNS AUSTIN
 
Dudley North MP IAN AUSTIN is warning that the West Midlands risks losing £185 million earmarked to boost the economy and bring jobs to the region.
 
The unallocated funds are part of the European Regional Development Fund (ERDF), which exists to boost growth and jobs regionally, particularly in disadvantaged areas.
 
The Government has yet to put in place a mechanism for allocating the funds, following the hasty and chaotic abolition of the Regional Development Agencies (RDAs) which used to manage the process. European Commissioners have raised real concerns that the funding could be jeopardised as a result.
 
If this does not take place in time, two thirds will automatically revert to the Treasury’s coffers. According to the most recent government figures, £1,160m – 41 per cent – of ERDF funding for England is still unallocated.
 
Ian Austin MP, said:
 
“The West Midlands was hit harder during the downturn than anywhere else in Britain – and is taking longer to recover.  It beggars belief that when our region is crying out for cash and investment to boost jobs and growth, this Government’s actions is putting £185million of potential funding at risk, and over £1billion across England.

“It is symptomatic of the shambolic and chaotic way in which the regional development agencies were abolished, that they had no plan to allocate this cash for jobs and growth to where it is needed. There are real concerns that if the Government drags its feet longer, the money could be clawed back centrally by the Treasury.
 
“Ministers need to get a grip to ensure this money gets out to the places that need it. Figures released yesterday underlined the scale of the challenge facing the West Midlands with employment down 4.5% - more than anywhere else in the country and output down 1.6%.

 
“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."