Anger at regional aid reductions

EU expansion is part of the reason for changes to assisted areas

Plans to drop the south of Scotland from a European regional aid map have been criticised across the region.

The Borders and Dumfries and Galloway are among four parts of the country set to lose assisted status under government proposals.

Scottish Borders Council convener Alasdair Hutton said he was "very annoyed" by the plans.

UK Industry Minister Margaret Hodge said she felt the proposals had a "good balance" when making the announcement.

Under the scheme, companies in assisted areas are eligible for government aid to create or safeguard jobs.

The change was ordered by the European Union, partly to give more aid to the newer EU countries including Estonia, Latvia, Lithuania and Slovenia.

The new map for assisted areas is due to come into effect at the start of next year with Edinburgh and West Lothian set to miss out along with Dumfries and Galloway and the Borders.

This is not good news for the south of Scotland and it is not good news for Dumfries and Galloway Tony Fitzpatrick Dumfries and Galloway Council

"I am very annoyed and I am very disappointed," Mr Hutton said.

"The government does not look as if it really wants to bother itself looking for where deprivation can be found.

"They have just wiped this area clean off the map because it is nice and easy for them but it leaves us with a real problem."

Tony Fitzpatrick, who heads Dumfries and Galloway Council's economic regeneration team, agreed that it was a blow to the area.

"This is not good news for the south of Scotland and it is not good news for Dumfries and Galloway," he said.

He added that the South of Scotland Alliance and the council would be lobbying to try to change the decision.

'Economic success'

Making the announcement, the industry minister said that the reduced coverage was partly down to the UK's economic success.

"The decisions we have taken have been difficult because the UK has received reduced coverage," she admitted.

"However, we believe our proposals reflect a good balance between the needs of Britain and the opportunities in Britain."

Three disadvantaged regions of the UK will still automatically qualify for coverage - Cornwall and the Isles of Scilly, West Wales and the Valleys, and the Highlands and Islands.

The whole of Northern Ireland will also continue as an assisted area.