Cornwall could start losing millions of pounds in development grants because of the government's negotiations on the EU rebate, according to an MP. Truro and St Austell MP Matthew Taylor said the government was now refusing to make a commitment to continue Objective One funding for the county from 2007.
He said it was because the government was negotiating giving up some of Britain's EU budget rebate.
The government said it could not make commitments on specific regions.
Replacement concern
Mr Taylor, the Liberal Democrats' former treasury spokesman, was told that the government could not make commitments by treasury minister Ivan Lewis in the House of Commons.
The reply was despite an earlier assurance from Gordon Brown that if he took back control of EU grants in a year's time, Cornwall's money would be replaced.
Mr Taylor said it was a government "smash and grab raid" on funds worth hundreds of millions of pounds to the county.
He said: "Losing this funding would jeopardise the future of so many of Cornwall's success stories, including the next investment in the Combined Universities of Cornwall and support for so many of our small businesses and communities.
"There is no doubt that Cornwall qualifies for this money under EU rules and it is crucial that it continues."
The Objective One programme makes about �100m of European funding available to the county a year. The current round of cash available is due to finish at the end of 2006.
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