THERE are fears that Government funding for vital projects in Northumberland could be lost as part of spending cuts later this year.

While Northumberland County Council’s regeneration boss Simon Neilson stressed that no money had yet been withdrawn, the Government was said to be planning a “comprehensive spending review” as well as a budget in the coming months.

Speaking at Wednesday’s meeting (September 25) of the local authority’s audit committee, he warned that expectations may need to be altered as a result.

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The Labour Government has said that it needs to plug a £22 billion black hole in  the country’s finances. The spending review is expected to conclude in the spring, with a budget set in the autumn.

Speaking at the meeting, Mr Neilson said: “At the moment, none of our projects are in scope for a reduction. There’s a budget coming and there is a comprehensive spending review that will come in.

“If there’s a spending review at a national level that says even committed projects may be in scope – it may be that our expectations might have to change based on what Government say. Until we hear that, we can’t react – but we would react appropriately if that were the case.”

Mr Neilson was speaking on a report looking at risk management about large-scale capital projects in the county such as the Energising Blyth programme and the Northumberland Line project. His comments came following a question from Labour councillor Lynne Grimshaw, who queried the process if Government funding was withdrawn.

Coun Grimshaw added: “There are towns and villages that have got projects ongoing with the view of being able to be achievable. I just worry that some of those projects might have to be scaled back a lot if there’s not the funding there.

“If so, how much would they have to be scaled back? Residents have got all these expectations. If it might not happen, It is better to know sooner rather than later.”

Mr Neilson responded: “At this moment in time with the ones that we have on the stocks and without all the packages being called out for Ashington and other towns, all projects are on plan and capable of being spent. There are some challenges around timelines and there are some unknowns.

“As we sit here today I don’t anticipate any of the current funding not being spent in line with our commitments to Government – but there may be a need for a couple of months extra.”