BUSINESS support organisation the North West Development Agency has dished out far more in grants to Merseyside and Greater Manchester than to Lancashire, it can be revealed.

The Government-funded body, designed to stimulate economic growth in the area, has paid out almost double the amount to Merseyside than to Lancashire, despite the two counties having a similar-sized population.

And Greater Manchester received almost £200million more than Lancashire.

The figures were defended by NWDA bosses, but East Lancashire business leader Mike Damms said it was “not surprising” that the agency appeared to favour Greater Manchester and Merseyside over the county.

Figures released under the Freedom of Information Act show NWDA spend by ‘sub-region’ from 2003/04 to 2008/09, the last six years available.

Lancashire received a total of £329.9million, an average of £227 per head of population.

But in Merseyside, the total spend was £612.6million, which amounts to around £448 per person.

Greater Manchester received £526.4million, which works out at £204 each when its 2.6million population is taken into account.

East Lancashire Chamber of Commerce chief executive Mr Damms said: “This is not surprising because there has always been a debate about how the NWDA sees the county.

“The key now is for East Lancashire leaders to work together to tackle priorities, rather than follow petty squabbles.”

Bosses from the six boroughs of East Lancashire now club together to get NWDA cash, an approach they claim will help them secure more in grants for businesses.

They believe Lancashire, the North West’s second biggest economy, has been neglected in the past, particularly its deprived parts.

NWDA head of strategic partnerships Ian Whittaker said: “Lancashire has received significant NWDA investment over the years which reflects the scale of its challenges as well as opportunities for strengthening its economy in a sustainable way.

“For example, in Pennine Lancashire we have focused significant investment in recognition of the extent of deprivation in these places - nearly £150million in Pennine Lancashire over seven years.”

The NWDA pointed to its investment in key East Lancashire schemes such as the Weavers’ Triangle in Burnley and the proposed Whitebirk business park in Blackburn.