Ministers look set to snub a bid from Cumbria for a £165 million funding package to help create 5,500 jobs.

Cumbria Local Enterprise Partnership (LEP) applied for the money from the Government’s Growth Deal 3.

But early indications from Whitehall are that the county will receive between £10 and £14m, less than a tenth of the money the LEP had requested.

LEP director Graham Haywood said: “We are very disappointed by initial indications from Government.

“The LEP made a strong and widely supported bid for funding for projects that are needed to maximise Cumbria’s economic growth.

“It is not just about the county. Cumbria is in a unique position to make a significant contribution to the Northern Powerhouse and the UK economy.

“If Cumbria gets £14m, we will only be able to support one or two projects rather than the large pipeline of important projects we have developed with a wide range of partners throughout the county.

“This level of funding would be a massive missed opportunity both for the county and the country at a time when we need to be sending positive signals to business and doing everything possible to maximise our potential for economic growth.”

The LEP’s proposal promised to create 5,500 jobs, lever in millions of pounds of additional investment, develop 600,000sq metres of business space and fund infrastructure work for new homes.

It would, the LEP said, have and boosted the county’s economy by £1.3bn by 2024.

Projects included:

  • Carlisle Station Gateway and the Citadels – Mixed use regeneration scheme including hotel, retail, residential and business workspace
  • Flood Resilience Programme – To improve business flood resilience and restore investment confidence
  • Growing our Potential (including broadband) – Grants and loans to boost business productivity and innovation, plus further roll out of broadband and digital technology across Cumbria
  • Lillyhall North – Measures to enable development of employment site and supply chain investment
  • Optimising Connectivity – Integrated, sustainable transport improvements
  • Skills Capital Programme – To enable delivery of Cumbria Skills Investment Plan and improvements to post 16 education provision
  • Whitehaven Town Centre – Commercial development of business workspace and upgrades to coastal railway and A595
  • Agri-sector Programme – Investment in business support activities to increase rural productivity and long term sustainability
  • Cross-a-Moor, Ulverston – Residential development and upgraded A590 junction
  • North Gateway Workington Development – Transport improvements to support major energy sector and development of new business workspace
  • Nuclear Technology Innovation Gateway – New academic research centre, laboratories and offices for National Nuclear Laboratory
  • Tourism Growth Programme – Investment and business support to boost Cumbria’s appeal as a destination and increase visitor numbers.

Tim Farron, the MP for Westmorland and Lonsdale, has written to Chancellor Philip Hammond urging him to rethink and back the LEP bid in full.

The Lib Dem MP said: “The Chancellor has time to change his mind, and I am determined to push him to do that, but this rejection of Cumbria’s businesses, farmers, tourism industry and education sector is a disgrace.

“These projects will create and protect jobs, boost the local economy, and give hope to local communities struggling with sluggish broadband.

“The Conservative government is neglecting our county and we will not stand for it.”