My colleague Andy Bounds broke the story last month that England’s poorest regions were losing out on millions of pounds of extra funding from the European Union - despite Wales, Scotland and Northern Ireland benefiting.

The government decided there wasn’t enough time for the regions to spend a sudden windfall after the collapse of sterling boosted the value of euro-denominated European Union grants by about a fifth.

The EU had offered to extend the spending deadline for unused regional aid. The UK took up the option for devolved regions - but rejected it for England.

Now it has emerged  that the money in question is an astonishing £671m. The unspent cash will be recouped by the Treasury - which can now deduct it from future British contributions to European Union budgets.

By contrast, Wales is set to get up to £60m, Scotland £54m and Northern Ireland £25m.

How is this likely to go down in the poorer parts of England - Cornwall, the north-east, the north-west? Answers on a postcard.  

February 5, 2009 5:14pm in Economy, Treasury, UK economy, UK politics | Comment