Osborne urged to ensure £245m used to regenerate coalfield areas

Chancellor George Osborne has been called on to use his Autumn Statement later this month to offer to match funding for the £245m earmarked for this region but which will be pocketed by the Treasury if the money cannot be matched from another source.

The issue has been highlighted in the Yorkshire Post’s Give us a Fair Deal campaign because the state of the economic has seen other sources of funding dry up.

Now Wentworth and Dearne MP John Healey has written to Mr Osborne calling for the Government to step in to ensure the European Regional Development Fund cash can be spent on regenerating areas devastated by the collapse of the mining industry.

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.” Under European rules, the money must be allocated by the end of 2013 or it is lost to the region and would be taken off future UK contributions to the European Union.

In recent years the fund has seen tens of millions of pounds used to finance dozens of projects across the region from transport infrastructure improvements and research and development for businesses.

Many grants were previously match-funded by development agency Yorkshire Forward, but that is now being wound up and many private firms will now struggle to find sufficient funding of their own.

Mr Osborne’s Autumn Statement will include new initiatives aimed at getting the economy growing again.