MINISTERS are considering a U-turn that could see Merseyside claim up to £117m in European grants, the Daily Post has learned.

The Department for Communities and Local Government (CLG) caused outrage last week when it emerged the UK had turned down an extension on a multi-million pound grant programme.

But now the European Commission (EC) has confirmed talks have re-opened with the UK that could see Merseyside given the windfall.

The EC sweetened their original offer of an extension last week by relaxing rules on what the money could be spent on.

Pressure is now mounting on Westminster politicians to “do the right thing” and accept the offer.

Cllr Flo Clucas, Liverpool City Council’s executive member for finance and Europe, called on Gordon Brown to honour his promise not to “abandon us” during these tough times.

She said: “We hope and anticipate that ministers will change their minds and give Merseyside the cash that’s ours by right so we can spend it to help small businesses. Basically, it’s come on Gordon, give us the money. He, at the end of the day, is ultimately responsible, he can make a big difference here. He said he wouldn’t abandon us, so come on, put your money where your mouth is.”

Cash-strapped regions were given an extra six months to claim grants from the EC. The deadline for the current round of funding passed on December 31, but states were offered the chance to push that to June 30.

Dennis Abbott is spokesman for Danuta Hübner, the EC commissioner for regional policy who made the offer. He said Mrs Hübner was keen to give states the opportunity to spend “every penny” of money on offer.

But while Scotland, Wales and Northern Ireland took up the offer, the English regions were denied the extension by Westminster decision makers.

The European Commission says 134m euros (£117m) remains unclaimed from Merseyside’s various funds. Others claim the actual figure could be much lower as more paperwork is processed.

benschofield