The Liverpool City Region is preparing the first stage of a judicial review against the Government over the way it allocated European funding.

The region is taking joint legal action with Sheffield City Region over cuts in EU funding of 60% during 2014-2020. The region argues that this equates  to £128 per head of population, compared with £325 per person in the previous funding round.

It also means that Liverpool receives less per head of the population in comparison to wealthier nearby areas, such as Cheshire.

Deputy mayor of Liverpool, Paul Brant, said: ?It is regrettable that we have had to take this action, but we are left with no option.

'It is clear that despite months of lobbying both before and after the announcement, the Government is burying its head in the sand and hoping we will simply go away.

'It is vitally important we send out a clear message about the unfairness and injustice over the allocation and let them know we are not prepared to accept it without a fight.'