MEP claims UK cuts will see Sunderland miss out on European Union cash

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THE region could lose out on millions of pounds of European cash because of public spending cuts, it has been claimed.

North East MEP Stephen Hughes said the loss of regional development agency One North East, and local authorities’ budgets being slashed, mean only 62 per cent of a £313million regional aid budget has been allocated because of a lack of match-funding.

As a result, the region could miss out on the next round of funding, worth £400million, if the cash is not spent by 2013, Mr Hughes said.

The Government claims it has met its funding targets in the region and any future European budget allocation will not be judged on past performance.