A political row has erupted over claims the government has reneged on a commitment to fund key regeneration schemes for Dartford and Gravesham.

Council chiefs claim they have been told some £23million pledged as stand-alone cash for regeneration projects in the Thames Gateway will now have to come from a bigger pot of Government grant money, allocated over three years.

Dartford council and Gravesham council say they were unaware the money would have to be taken from the regeneration project’s overall budget.

The government has dismissed the claims as 'codswallop’ and insists no deal has been broken.

A statement issued by the Department for Communities and Local Government (DCLG) said: “This is utter codswallop. We haven’t cut any funding for these or any other projects in the Thames Gateway. We set out our plans for the Gateway last year and remain firmly committed to investing in major housing, employment, transport and social infrastructure projects to transform the lives of local people.”

But both councils insist there is now a question mark over money earmarked for some schemes, such as improving town centres and transport connections for Eastern Quarry.

Cllr Mike Snelling (Con), leader of Gravesham council, said: “We are extremely disappointed and have asked for the decision on the £23million to be reversed. It has come as a complete shock.”

County councillor Roger Gough, acting chairman of the Kent Thameside Regional Partnership, said it was a confusing situation. “One thing that can be said is that the understanding that Kent Thameside had is not consistent with what we are now being told. The government appears to know that homes are important but at the very least uncertainty has been created over regeneration money.”

However, he stressed there were on-going discussions with government officials and the issue was “high on the agenda”.