SOME of the most underprivileged areas of Worcestershire and Herefordshire are to be regenerated thanks to £500m of European money.

An estimated 28,000 new jobs could be created in the region now that the aid package has been granted following months of bureaucratic wrangling.

"It's very good news for us," said Peter Morgan, spokesman for the Chamber of Commerce Herefordshire and Worcestershire, who added that the regeneration would take place over the next five years.

"Areas that will be regenerated will include West Malvern, Tenbury, and much of Herefordshire. The money is targeted to the areas that need it most.

"It is good to be getting money from Europe invested in the region."

The project called Objective Two covers just under half of the West Midlands region, with 2.4 million people benefiting. The programme is designed to develop a diverse and dynamic business base, create conditions for employment growth and regenerate communities with a view to sustain growth.

The region's Euro MP Liz Lynne has also welcomed the funding.

"I am delighted to see that the region's Objective Two plan has been approved by the commission at last," she said. "This investment is desperately needed to offset the problems of industrial change."

But she added it could have been distributed in a better manner.

"The map drawn up by the government for our Objective Two programme, which determines where this money is spent is not ideal and we did try to get it changed last year," she said.

"But it is better than nothing."