The Government is to throw Britain's struggling coal industry a £100 million lifeline.

Ministers were announcing this afternoon the massive two-year subsidy to rescue several mines, including the Selby complex, and safeguard more than 3,000 jobs.

But it still needs to be approved by the European Commission.

Trade and Industry Secretary Stephen Byers is reported to have removed from their posts two senior civil servants opposing the financial assistance.

The aid package will be seen as New Labour responding to warnings that it should not ignore its heartlands while wooing Middle England voters.

Many British mines are in trouble because of a glut of coal on the global market, pushing prices down.

Ministers have highlighted that the German coal industry receives more state aid than Britain's will.

They believe the subsidy will safeguard the Selby complex, Ellington in Northumberland and Clipstone in Nottinghamshire, as well as improving the prospects of many of the 17 remaining deep mines.

Selby MP John Grogan said: "This is tremendous news for the Selby coalfield and should now enable the new American owners of Drax Power Station to sign up with RJB for coal supplies for the next five years.

"It will bring much-needed stability to the Selby pit complex and the local economy.

"Without this injection of aid, there would have been another round of pit closures and job losses. Any more cuts and the Selby coalfield would have been closed."

Selby district councillor and Riccall mineworker Dean Howson said: "Selby miners and their families have been living on a knife-edge, and this news is a massive relief.

"It gives us six years of stability, and six years to plan for the eventual run-down of the Selby complex."

Research released today showed that people living in former coalfield communities are facing a battle against poverty, sickness and unemployment - some 10 years after the collapse of the mining industry.

The in-depth study, published by the Joseph Rowntree Foundation think tank, suggests affected areas are in desperate need of more Government and EU support.

The research indicates that although environmental projects have cleared much of the dereliction caused by mining, regeneration agencies have been unsuccessful in creating the required levels of training, employment and business opportunities.

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