MINISTERS will store up serious social and economic problems unless they re-write their inadequate regeneration strategy, it will be claimed today.

The warning from the chairman of the Commons communities and local government committee came as it published a damning report into the coalition Government’s strategy for regenerating deprived areas of England.

The cross-party committee accused ministers of failing to understand the scale of the situation and not focusing on the specific issues faced by deprived communities and areas of market failure.

MPs highlighted the withdrawal of cash for a programme to regenerate areas of the Midlands and the North – including parts of Gateshead and Newcastle – by renovating or building thousands of homes.

They said halting Pathfinder schemes mid-stream had created “significant problems” with many vulnerable residents “trapped in half-abandoned streets” and demanded urgent Government help for them.

MPs also said ministers were wrong to place so much emphasis on schemes like the regional growth fund when they were not focused primarily upon regeneration. A strategy for attracting private sector cash was also absent, said MPs.

The Government is now being urged to draw up a new “coherent” national regeneration strategy as well as helping boost community-led work.

Committee chairman Clive Betts said: “The Government has cut public funding for regeneration programmes dramatically and has produced no adequate ‘strategy’ for regeneration sufficient to tackle the deep-seated problems faced by our most deprived communities.”

The Labour MP added: “There is no sign that the private sector is filling the gap as public resources are being withdrawn. Indeed private investment is only likely to be attracted in partnership with public funding.