Labour MP for Newcastle North, Catherine McKinnell, has responded to One North East’s announcement that £33m has been slashed from its funding.

The well-respected development agency, based in Ms McKinnell’s constituency, has, for the first time, given details of the projects that will be abandoned as a result of the government’s £6.2bn cuts announced earlier this year.

‘One North East has made an enormous and visible difference to every part of our region,’ said Ms McKinnell. ‘Its achievements speak for themselves and along with driving much-needed regeneration, ONE has also been central to local growth; attracting investment, training workers, creating jobs and managing development.

‘Today’s news that more than £30m will not now be provided to hundreds of organisations across our region will be a devastating blow to the local economy. The unfortunate truth is that the loss of this funding is likely to lead to substantial job losses and mean that the additional employment that would have been generated will simply not happen.

‘The coalition government doesn’t seem to understand that ONE has been hugely successful in developing our regional economy. By wielding the axe at such a critical time, it risks kicking away the support that will be vital to our recovery. In the name of deficit reduction the government is imposing arbitrary cuts without first examining or understanding the disproportionate consequences that they will have on the north east.’