MINISTERS pledged yesterday to fight changes that threaten to deny County Durham and Tees Valley up to £500m of regeneration funding.

Regions minister Alan Michael criticised the European Commission's attempt to increase the area's gross domestic product (GDP) figure by including offshore oil and gas revenues.

The change would put County Durham and Tees Valley above the qualification threshold for economic development aid of up to £500m between 2007 and 2013.

North-East MPs who raised the dispute in a Commons debate yesterday, said they felt reassured by Mr Michael.

But they criticised his refusal to say exactly how much money was at stake ahead of an agreement on the size of the EU's budget.

Mr Michael said estimates of £500m were theoretical, but Durham North MP Kevan Jones said such an attitude risked missing out on some of the money.

The issue was initially raised by John Lowther, chief executive of the Tees Valley joint strategy unit - the strategic planning operation of the area's five unitary councils.