John Healey MP has criticised plans to cut European funding for South Yorkshire - and instead send the money to Scotland, Wales and Northern Ireland.
The Wentworth and Dearne MP has been pushing to secure millions of pounds to boost the region’s economy.
In February this year EU leaders agreed parts the UK should receive ‘Transition Regions’ funding.
It had been understood the ‘Transition Regions’ funding for Sheffield City Region for 2014-2020 would be reduced by a third - but it is now feared the cut will be twice as deep, meaning a loss of €40m.
The money would be spent on helping people into work, more apprenticeships and training, reducing emissions, building flood defences and helping businesses export.
Mr Healey said the decision ‘rubs salt in the wound’.
“Our areas face cuts much more savage even than our worst fears, and massively greater than any other part of the UK,” he said.
“To intensify our sense of outrage, a major factor in the cuts our areas uniquely face is the Government’s plan to divert funds from South Yorkshire and Merseyside to the devolved administrations in Scotland, Wales and Northern Ireland.”