CASH from the region's development agency, Advantage West Midlands, is distributed on the basis of need, not population.

The statement was made by the agency's press spokesman, Bill Jones, in response to claims made by Mid-Worcestershire MP, Peter Luff in the Evening News last Friday.

The Conservative MP claimed Worcestershire was only receiving about 1.3 per cent of the total budget, despite representing 10 per cent of the West Midlands' population.

But Mr Jones said distribution of the agency's budget, which was around £120m this year, was determined by need.

He said the agency had identified regeneration zones within the region, based on an index of deprivation, which were earmarked for investment.

"Worcestershire is a comparatively well-off county compared to, for example, the Black Country, Stoke-on-Trent and the middle of Birmingham," said Mr Jones.

"Having said that, we've spent a fair amount of money in Worcestershire, including about three-quarters-of-a-million pounds to non-farming businesses affected by foot-and-mouth."

The six regeneration zones, encompassing "concentrations of need and substantial opportunities", are north Staffordshire; the Marches; the north of the Black Country and south Staffordshire; west Birmingham and the south of the Black Country; east Birmingham and north Solihull, and Coventry and Nuneaton.

Mr Jones said a lot of the money the agency had received this year had already been committed to projects prior to its formation.

"The money we've got isn't all ours to spend, in that a lot of the money has to go into programmes established before we came along," he said.

Advantage West Midlands was formed in April 1999 when a number of bodies came together.

These were English Partnerships, the West Midlands Development Agency, the Rural Development Commission, and some departments of the West Midlands Government Office, such as innovation, regeneration and learning and skills.

Mr Jones said, in addition, the agency was about to spend "millions of pounds" on three technology corridors in the region, one of which was the Worcester to Birmingham corridor, taking in the Malvern Science Park.

"The money's there, we're just waiting for the rubber stamp from the Secretary of State, Patricia Hewitt, expected any moment," said Mr Jones.

"There will be a lot of money spent helping companies diversify, develop and modernise."