BOROUGH leaders have vowed to fight a Government decision to snatch prized Assisted Area status from Ellesmere Port and Neston.

The Department of Trade and Industry's announcement to remove the borough from the new Assisted Area map for the UK means the loss of Tier 2 Assisted Area status, which makes financial support available to local firms.

The council had responded to both consultation rounds held earlier this year.

Along with borough MP Andrew Miller, the authority met with Industry Minister Margaret Hodge in London last week to put its case forward.

The council's regeneration and economic development manager Charles Holmes said: 'We are extremely disappointed by the official announcement made by the DTI and its failure to acknowledge Ellesmere Port and Neston's needs.

'But we still believe the borough has a strong case for inclusion and intend to continue to push our case.

'We plan to carry on working with MP Andrew Miller, who has been of great support, to push our case for inclusion, prior to the map being finalised by the European Commission by the end of the year.'

He added: 'If the DTI refuses to allow the borough to be included in the new map, all is not lost, as the DTI told us last week that it planned to allocate Tier 3 Assisted Area status to the borough.

'This would allow small to medium-sized enterprises (SMEs) to receive financial support from the Government to help them expand through the purchase of new equipment and creation of new jobs.' Ellesmere Port & Neston had been benefiting from its 'assisted' status since 1991.

Although there is no set figure on how much cash has come the borough's way as a result, council leader Reg Chrimes estimates it is 'many millions'.

But now it looks set to lose this status from January 2007.

Mrs Hodge said the UK had to cut a fifth of its 'assisted' areas under EU rules.

She added: 'We have had the difficult job of prioritising areas eligible for regional aid.'