CITY slickers were exposed yesterday for sitting on stacks of cash rather than doing their bit to help the government’s £3.2 billion Regional Growth Fund.

Labour shadow business secretary Chuka Umunna said the flagship scheme launched by Deputy Prime Minister Nick Clegg in 2010 faced a £900 million funding black hole in cash supposed to come from private investors.

At the time of its launch the Lib Dem leader promised “a new kind of growth” following the spectacular collapse of the City in 2008.

But £750m of the first £1.9bn slice earmarked for regional projects remains unspent, according to the opposition’s analysis.

“We are now into the fifth year of Tory failure,” said Mr Umunna.

“The Conservative Party came to office promising to rebalance Britain’s economy across all the regions with an export and investment led boom, and have failed.”

Mr Umunna said Labour would devolve £30bn in central funding to regional bodies.