NORTH Yorkshire stands to lose many thousands of pounds in grant aid from Brussels.

Timothy Kirkhope, European MP for the Yorkshire and Humber constituency, said the whole region was likely to lose £520m of European funding under European Commission proposals.

Mr Kirkhope said EU funding for the region would drop from the £1,091m programme which began in 2000, and lasts until 2006, to £571m between 2007 and 2013.

He said he was calling on Chancellor Gordon Brown to intervene in an attempt to ensure that Yorkshire did not miss out on the funding needed for schemes in areas like Ryedale.

Mr Kirkhope said: "Even Mr Brown has recognised the need for Britain to exercise more control of its own cash.

"He must fight his corner in Brussels and ensure a fair deal for Yorkshire".

Andrew Leeming, Ryedale District Council's head of economic development, said the news was a blow to the district:

"It will have a dramatic impact on Ryedale," he said.

He said that many projects had benefited under the EU's Objective 2 regional funding scheme.

These included the visitor centre due to open at Helmsley Castle this spring, the North York Moors National Park's sustainable tourism development scheme, and a number of small community schemes.

The investment by the EU in Ryedale in recent years had helped create jobs and seen the quality of life improve for many rural communities said Mr Leeming.

A total of £750,000 has been injected into the district in economic and social initiatives.

Businesses have been helped with their efforts to diversify, especially farms and those in the tourist business.