Twinings has missed out on a €12m (£11m) grant from the European Union amid concerns the money would be spent relocating jobs away from the UK.

The grant – from an EU development fund – was awarded by Polish authorities on the basis that it would be spent on new investment in the country. But the EU has now blocked the handout, having decided there was a risk it would be spent relocating jobs from one member country to another.

The news comes after Twinings last year cut hundreds of jobs from locations in Andover and North Shields.

“Our original proposal fully set out the nature of the [Polish] project, including the potential impact on employment numbers,” Twinings said in a statement.

The decision to block the payment has been hailed as a victory by UK trade unionists.

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Twinings’ Polish switch in row over EU funding (9 November 2010)