Government cash is one step forward after ten steps back for Hull

Hull North MP Diana Johnson has described yesterday's Government funding announcements for Hull as "one step forward after ten steps back".

The Department of Business, Innovation and Skills announced £8m for a housing scheme in West Hull from the Regional Growth Fund, while the Department of Health announced that £84m in Private Finance Initiative (PFI) credits were to be made available for social care schemes in Hull.

Diana Johnson MP said: "These local election announcements only partially restore funding cuts to Hull made by the Coalition Government since last year. For Hull, this is one step forward after ten steps back.

"It's welcome that some of the work due to happen under the previous Labour Government will go ahead, but far more public and private investment has not been restored and will still be lost to Hull's local economy.

"The £8m of Regional Growth Fund money for one scheme in West Hull does not make up for the £160m cut from Hull North's Orchard Park regeneration scheme or for other Gateway projects that remain cut across Hull.

"This will not provide adequate compensation for the 1,300 Council jobs being taken out of Hull this year in the £50m of local government cuts, and the £20m knock-on effect in the local economy that will also damage the private and voluntary sectors.

"The social care PFI funding will be welcome if and when it comes, but needs to be balanced against the loss of Council day centres and the £25m being cut from Hull's NHS this year."

John Denham, Labour's Shadow Secretary of State for Business, Innovation and Skills, said: "By cutting funding for regional growth by two-thirds, the Tory-led Government is choking off funding needed for regions to grow and create the jobs our economy needs.

"The Government is allocating £1.4bn over three years to projects, two thirds less than the £1.4bn a year Labour was investing through the Regional Development Agencies alone.

"The desire to cut too far and too fast has caused growth to be revised down and the unemployment forecast to rise, all while the Government is holding back support for businesses looking for investment that will help regions to create jobs and ease reliance on the public sector. There are more losers than winners with this announcement."

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