'£4.25m being held back from Preston businesses'
But there is another £4.25m still in the pot for grants which could help another 350 or so firms across the city who are struggling.
The figures have been released by Labour which claims the Government is now clawing back the unspent cash from areas like Preston instead of passing it on to employers battling to keep their heads above water with local lockdown measures.
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Hide AdThe party says that across the UK more than £1bn was allocated to businesses in areas like East Lancashire, Greater Manchester, Leicester and parts of Yorkshire where fresh restrictions have had to be introduced due to local spikes in coronavirus cases.
Almost £171m of that has not been spent, says Labour, with Whitehall reclaiming the surplus rather than using it to further safeguard jobs and livelihoods.
The cash could fund an additional 15,000 businesses nationwide in areas where they are suffering the most under local lockdowns.
The stats show the Preston City Council area was allocated just short of £35m when the Covid-19 grants programme was first introduced. So far £30,720,000 has been paid out to 2,580 firms, at an average of £11,906 each.
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Hide AdBut there is still £4,250,000 of that cash which has not been allocated which could help a further 357 companies to weather the storm.
Babs Murphy chief executive of the North and Western Lancashire Chamber of Commerce, said: “If reallocated, these unspent budgets will go a long way to help struggling businesses get back on their feet.
"Business communities continue to face significant operational challenges, with a prolonged period of reduced sales and cashflow
A Treasury spokesman said: “We’ve taken unprecedented and targeted action with our Plan for Jobs to support people and businesses through the pandemic.”
The spokesman said any money returned to the Exchequer from the grants schemes will contribute to the wider cost of the exceptional measures Government is taking.