Government ‘cheated’ region out of EU money, former Minister claims

Mr Healey accused the coalition of wilfully siphoning off half the EU funding intended for his Wentworth and Dearne constituency and the rest of South Yorkshire.

Two weeks ago, after a group of local authorities challenged the move on the basis that they allegedly gave rise to an unfair allocation and breached the EU law principles of equality and proportionality, the High Court ruled against the Government.

Mr Healey told the Commons that newly published evidence revealed the extent of the Government’s “cheating”. He said during an adjournment debate on the row: “Documents disclosed for the first time to the court show just how far Ministers are cheating South Yorkshire and Merseyside.”

The High Court rejected claims that there were substantive grounds to challenge the methodology adopted by Business Secretary Vince Cable, saying it was lawful and rational. However, the court quashed Ministers’ decisions themselves on the basis that they were unlawful.

Mr Healey said the High Court ruling was vindication for all members and local authorities who fought against the decision.

“So Ministers were wrong; their decisions are unfair, unjustifiable and unlawful,” he said.

Sheffield Central MP Paul Blomfield MP criticised fellow Sheffield MP Nick Clegg for failing to defend the city and letting the Government divert European Union funding to wealthier parts.

“The perverse impact of the Government’s formula is illustrated by the fact that Cheshire (which includes the Chancellor’s constituency) has been allocated 34 per cent more per head than South Yorkshire – although its GDP is 19 per cent above the EU average, while ours is 16 per cent below,” he said.

“The Deputy Prime Minister... strongly defended this formula, which took money intended for ours and other poorer regions and gave it to wealthier areas.”