The Highland region is one of the poorest in Europe

It has been claimed that government experts overstated the health of the Highland economy, leading to the region losing out on subsidies.

The region, which is among the EU's poorest regions, has benefited from hundreds of millions of pounds of assistance over the years.

It has helped to pay for everything from roads and bridges to business parks and community arts venues.

Four years ago the area's status was downgraded meaning less European grant cash.

We felt at the time that we were eligible for Objective 1 funding and we did our utmost to prove that Alison Magee Highland Council leader

The economy of the Highlands and Islands was in a worse state than official statisticians had calculated.

Highland Council leader Alison Magee said the loss of funds has proved a blow to the area's development.

"We felt at the time that we were eligible for Objective 1 funding and we did our utmost to prove that," she said.

"So I think that it is extremely disappointing, to say the least, that three or four years after the event we've discovered that we were right all along and we've potentially lost out on a higher level of funding."

The Office for National Statistics argues that the Highlands and Islands would not have been guaranteed the funding even with the reviewed figures.

Areas such as South Yorkshire and Merseyside were in better shape, but they got European Objective 1 status while the Highlands and Islands did not.