Goldsworthy: Government blocks 10,000 new jobs

Mon, 18 May 2009

The Government prevented the creation of around 10,000 jobs when it refused to extend the deadline for regions to apply for £630m of EU funding, according to figures released by the Liberal Democrats.

The EU offered to extend the deadline for regional bodies to apply for money from the European Regional Development Fund, but the Government failed to take up the offer. Much of the money has recently become available because of the fluctuations in the Euro exchange rate.

Both the Scottish and Welsh governments accepted the extension of the applications period and will therefore be eligible for funding that could create or sustain thousands of new jobs.

Commenting, Liberal Democrat Shadow Local Government Secretary, Julia Goldsworthy said:

"The Government's decision to turn down hundreds of millions of pounds is short-sighted and foolish, especially during a recession."

"This decision risks halting projects that are already bringing much-needed jobs to every region, as well as discouraging good ideas that desperately need European investment to succeed."

Julia concluded, "While people across the country are losing their jobs and struggling to pay their bills, it is shocking that ministers have stepped in to prevent hundreds of millions from flowing to the people who need it."