BUSINESSES in Hyndburn -- which have used millions of pounds in European money to secure jobs during the past decade -- have had another cash lifeline cut.

The Government has reversed its decision to offer Hyndburn assisted area status, which gives businesses grants to safeguard jobs and increase prosperity.

But the neighbouring Blackburn with Darwen was celebrating after the Government announced Billinge has been added to the list of areas in the borough which will benefit from the cash.

Hyndburn was told it would get assisted area status for Clayton-le-Moors, Altham and Huncoat last summer, on the day that multi-million pound bids for cash for community projects to revitalise Huncoat and Great Harwood were turned down.

Blackburn with Darwen, Ribble Valley, Rossendale and Burnley were also given the chance to apply for the grants, to aid businesses and create jobs.

Now the Government has had to re-draw the grants map after its plans failed to meet European Commission guidelines.

When the money was awarded last year, Hyndburn MP Greg Pope said it was the "best news for Hyndburn in years". Mr Pope and Pendle MP Gordon Prentice led a delegation from East Lancashire to lobby Trade Secretary Mr Byers to press for assisted status a year ago. Today Mr Pope said: "This is a bombshell made in Brussels. The rules were changed after the original decision was made and it is devastating."

Staff at Hyndburn Council's regeneration department were unaware of the development. One worker said: "This is devastating news for the borough if it is true. We have not heard anything about this."

But Ribble Valley MP Nigel Evans said: "This is bitter blow for East Lancashire. It is taking away the umbrella while it is still raining. East Lancashire does have low unemployment but it has a lot of low paid jobs. This news means other areas will become a magnet for investment and will take it away from East Lancashire."

The news follows a decision last year to take away Hyndburn's Objective Two cash, European money which has funded community regeneration projects. The £6m received by the borough in the past 10 years has helped create 2,000 new jobs, balancing out the 2,500 jobs lost in that time.

Assisted area status is awarded where the overall economic performance of an area drags back businesses and industry. The only aid Hyndburn now receives is transitional funding to ease the burden of losing Objective Two money.

Michael Damms, chief executive of the East Lancashire Chamber of Commerce, was raising the issue with regional development chiefs and Euro funding bosses in London today.

He said: "This is a further blow to an area that has already seen the loss of Objective Two funding. It is compounded by the continued hostile climate for manufacturers.

"It is hard to see how anybody has drawn the conclusion that this is an area on its way up.

"Manufacturers in East Lancashire are doing their best to help themselves but they need all the assistance they can get."

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