Anger as cash for Yorkshire 'goes to waste'

A SENIOR Tory is demanding to know whether money destined for deprived areas of Yorkshire was sent back to Brussels without being spent.

Timothy Kirkhope, leader of the Tory group in Europe, has launched a fierce attack on the Government after a report suggested Doncaster and Barnsley – which have been targeted with European Union money – would be among cities to struggle after the recession.

He said he had "the strong feeling" some of the funding destined for South Yorkshire may never have been spent because of Treasury refusals to match it or because programmes earmarked for funds were deemed not to be "sufficiently useful".

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Mr Kirkhope, one of Yorkshire and the Humber's six MEPs, decided to air his concerns after a report by Centre for Cities research group identified towns and cities facing a tough outlook after the recession is over because of their reliance on public sector jobs and low skill levels.

"The strategic grant monies which were provided for South Yorkshire in a programme which ended in 2008 were welcomed by myself and my colleagues and, had the plans for spending them been in better shape and better executed, might have been of more use as a cushion against the continuing economic problems," he said.

"I am still waiting for a response from Government to confirm to me whether we actually used all the money we were entitled to or whether some was effectively 'returned to Brussels'.

"If, in due course, I hear that we did not spend all we could have done then I will be angry – and particularly angry on behalf of all those constituents who are bearing the brunt of the current crisis here in our region."

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Mr Kirkhope's concerns centre on the Objective One programme of European funding, which was targeted at regenerating the most deprived areas of the union. South Yorkshire was the only part of the region to qualify for this pot of money, which promised to bring in a 1.8bn investment.

More than 700m of the money was earmarked from Europe's structural funds, but to take advantage that had to be matched by the UK Government.

Mr Kirkhope said he believed some of the money had been "wasted" and that there was "a question mark as to whether the programmes were properly implemented".

And while money spent on training had often proved useful, other investments, such as "amazing numbers" of recording studios, could be questionable.

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He suggested a return to Development Corporations set up by the Tories in the 1980s to encourage enterprise, and accused Labour of "neglect", claiming northern MPs had let the region down in areas like Barnsley, Hull, Doncaster and Grimsby.

But Rosie Winterton, Labour's Minister for Yorkshire and the Humber, denied the Government was neglecting South Yorkshire and said European funds had supported projects including Doncaster racecourse's conferencing and exhibition facilities, Barnsley's transport

interchange and the refurbishment of Bridlington Spa.

Thorough checks on spending were carried out, she said. "We take these extremely seriously and if there are any liabilities we will work hard with the relevant organisations to reduce them."

She added: "It is absolutely astonishing that the Tories would say we have done nothing to help places like Doncaster and Barnsley.

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"The Tories have voted against everything we have done to support the economy in these difficult times and they want to abolish Regional Development Agencies like Yorkshire Forward."

Tax threat to holiday homes

Farmers seeking to diversify to survive have seen their efforts "holed below the waterline" by tax changes for holiday homes.

Chancellor Alistair Darling confirmed in his Pre-Budget Report that tax relief on furnished holiday lets will end in April, but Tory MP Robert Goodwill has made a last-ditch plea to Ministers.

"If only ten per cent of the jobs in this sector go, that will amount to 2,400 jobs," he said. "Is it not beyond the bounds of possibility to think of a way to give an exemption to genuine businesses?