LANCASHIRE has missed out on a £3million pot of cash designed to help businesses recover from the effects of foot and mouth.

A farmers' leader blasted the Department of Trade and Industry's decision to bypass the county.

But the boss of a Government-backed regeneration agency pledged that Lancashire would ultimately come out on top.

Twenty projects aimed at helping budding entrepreneurs and businesses affected by foot and mouth disease have been given a total of £3million from the Government's Phoenix Fund.

According to the DTI, the winning projects are all unique in their approach, matching local solutions to local needs.

They are all designed to bring communities together to help them help themselves.

The successful projects help farms to diversify into other areas, help local people train for new skills and create new sales outlets for firms working within areas.

But Lancashire, which had more than 50 confirmed cases of foot and mouth resulting in tens of thousands of animals being slaughtered at hundreds of farms, will not receive a penny.

The money will go to Cumbria, the South West and the North East. It will be spent on helping in manufacturing, agriculture and tourism -- all industries which suffered in Lancashire to the tune of millions of pounds.

Thomas Binns, a Ribble Valley farmer and vice-president of the Lancashire National Farmers Union, said: "I am very disappointed .

"The problem is that there is so much money available but it is so hard to get. It doesn't come direct to the farm, it goes to a third party.

"It can be a real nightmare for farmers to get. Some red tape needs to be cleared away."

One such 'third party' is the Bowland Initiative based in Clitheroe. Set up last year by MAFF and replaced by DEFRA last June, its aim is to help farms diversify into other areas.

Their role changed when foot and mouth hit the Ribble Valley, and they now help source grants for farmers so they can carry on working.

John Wellbank, in charge of the Initiative, said: "We could have applied for this funding but the strings attached and conditions made it very unattractive.

"We draw up business plans with the farmers and get the money for them.

"We aim to provide long-term solutions which fit in with the environment as well. That could be getting one member of a family to train in a new job to help keep the farm going, or helping them start making another product, such as ice cream.

"Lancashire County Council is trying to sort out its own recovery package. I think in the end, farmers from Lancashire will do as well as other areas."

RIbble Valley MP Nigel Evans said: "The government is behaving in a 'rip-off Britain' manner they deplore so much.

"They say the money is there, that it will help people, but it gets so tied up in red tape that it just doesn't deliver the promises.

A spokesman for the DTI said: "More than 70 applications were received and we couldn't help them all.

"Several were from Lancashire but they did not meet the requirements.

"The Pheonix Fund is a one off but other schemes will be available and Lancashire will benefit from them."