MILLIONS of pounds of aid for economic black spots in Sussex are being held up in a wrangle between Brussels and Whitehall.

The dispute could end the chances of the coastal strip from Shoreham to Newhaven, including the whole of Brighton and Hove, winning coveted assisted area status.

Money was supposed to start flowing on January 1, but funding has been delayed after the European Commission questioned the British Government's proposals.

Neither the commission nor the Department of Trade and Industry will be precise about the reasons behind the hold up, but the Argus understands one of the issues is the targeting of individual wards.

Unlike the majority of other British candidates for assisted status, the Sussex bid is a patchwork of wards identified for aid,

often alongside affluent areas - something the commission is traditionally wary of approving.

Ken Bodfish, who has the regeneration brief on Brighton and Hove Council's ruling cabinet, said: "We could be in trouble.

"They understand Merseyside, they understand South Yorkshire, but when you start targeting down to very small areas, areas of 20,000 people, they don't like that.

"In my view the commission's position is wrong because it is for administrative convenience rather than specific need."

There was jubilation in July when the Government announced the coastal strip should get assisted area status - ending years of campaigning for official recognition that the hard-pressed economy needed help.

Assisted area status is the highest level of state aid available to attract new business into depressed areas, offering huge Government grants for many companies moving into economic black spots.

The Sussex coast is scheduled for tier two and tier three status, giving it a similar level of help to areas such as Merseyside.

By identifying individual wards, it was hoped to target aid on areas such as Shoreham Harbour, Whitehawk, West Hove and Newhaven.

Mr Bodfish said: "It would be very, very serious for us to lose assisted area status, it would blow a very large hole in our economic strategy."

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