WEST Midlands Liberal Democrat MEP Liz Lynne has today welcomed reports the Government may be considering a U-turn on its decision to refuse £671 million offered by the European Commission to help see off the financial crisis, an estimated £84.4 million of which could go to the West Midlands.

The commission had offered the money, which was left over from the European Regional Development Fund to EU countries to spend across regions most affected by the financial crisis. It even offered the UK a six-month extension on the December 2008 deadline for deciding how to allocate it.

But despite taking the money for the devolved regions of Scotland, Wales and Northern Ireland, the Government decided not to take the money for English regions as it "did not make economic sense".

Instead, the Treasury planned to claim the cash back from future years’ contributions to the EU budget.

Now it is being reported the Department for Communities and Local Government is reviewing the decision, which could lead to a U-turn in the Government’s policy.

Liz Lynne, who is vice-president of the Employment and Social Affairs Committee in the European Parliament, welcomed the possibility of a review.

She said: "I am very encouraged to hear that a U- turn may be in the offing. "The West Midlands desperately needs this money now to kickstart the region’s economy and help local businesses and services survive the financial crisis.

"I very much hope that the Government does accept that it has made a grave error in denying the regions this funding and reverses its decision.

"Gordon Brown is in the US today talking about his leadership to help see the world though the financial crisis. I don’t see much evidence of leadership in the way the Department for Communities and Local Government has handled this simple decision.

"The foolishness of the Government has already cost us valuable time. Who knows how many West Midlands jobs could have been saved if they had accepted this ERDF money at the first time of asking?”