Edward Davey

Over £110 million of government cash set aside for regenerating run down communities has been spent on administration, the Liberal Democrats have said.

Local government spokesman Edward Davey said he was "shocked" by the figures contained in a written parliamentary answer.

It means that since 2000 over 10 per cent of the New Deal for Communities budget has been spent on form filling and bureaucracy and is not reaching the people and communities it is intended to help, he added.

With a budget of £10 billion over 10 years, the aim is for an average of 6.1 per cent to be spent on administration.

But of the 1999/2000 to 2005/06 budget of £1.12 billion, £122 million has been spent on "administration and management".

A league table of partnerships receiving the funding showed that Heywood, Rochdale was the worst performing body with 38.36 per cent of its cash sent on administration.

"It is shocking that so much New Deal money is being spent on administration," said Davey.

"The New Deal is supposed to help the poorest communities but it appears that much of it is missing its intended target.

"The reason administration costs are so high has much to do with the centralised quango based approach of New Labour.

"The New Deal for communities may have brought benefits but it has brought bureaucracy too. Too often the New Deal has meant a better deal for bureaucrats than for the communities it is meant to serve."