Redcar and Cleveland Councillors returned £1m EU development cash by choice

More than £1m of European development funding was paid back by choice, said Redcar and Cleveland councillors today.

As reported, the authority has refunded £1.03m of the £31m European Regional Development Fund (ERDF) cash it received for the Redcar Leisure and Community Heart project which opened in April 2014.

But claims by Cabinet member for housing, Councillor Tristan Learoyd, that the taxpayers would be hit with the bill for the refunded cash have been branded “senseless scaremongering”.

Councillor Glyn Nightingale, Cabinet member for corporate resources, said: “The council’s previous administration chose to return the £1.03m European funding which had restrictive conditions on letting.

“It did this to widen the scope for more businesses to set up in the Redcar and Cleveland Leisure and Community Heart.

“There was considerable interest from businesses planning to move into space available. They were not eligible to do so because of stringent ERDF rules.

“By returning the money the restrictions on the space were lifted.

“We shall now be seeing more businesses moving in and creating jobs in the borough. The income from these new lettings is much greater than if the ERDF funding was kept.

“We are determined to speed up filling the vacant space and are confident that this will be a better deal for local people.”

Cllr Sue Jeffrey

The leader of the council’s Labour group, Councillor Sue Jeffrey, said Cllr Learoyd’s claims the council had suffered a £1m loss by having to refund the Euro funding “is senseless scaremongering”.

“The reality is that European Development funding comes to any public body with strict rules attached,” she said.

“In the case of the Community Heart, the council was successful in attracting commercial tenants for parts of the building and these businesses were not eligible for grant aid.

“This was fully explained to Cllr Learoyd at a council meeting late last year. These statements are both irresponsible and ill-informed and do nothing to help us promote Redcar and the excellent work that is being done to regenerate the town.”

The Redcar Leisure and Community Heart boasts sports and leisure centre, swimming pools, civic facilities, business centre, and meeting and community spaces.