As Labour's leader in the European parliament, I have seen how our decisions can greatly benefit our citizens on a day to day basis and the benefits that EU trade, co-operation and investment bring for Britain's communities and businesses.

The global financial crisis requires global action – and more trade abroad means more jobs at home. Our strong voice in Europe means that UK companies are well positioned to benefit from our economic links with the rest of the EU. The EU is a potential market of almost 500 million people that British businesses enjoy full and direct access to, and which year after year has helped deliver jobs, growth and greater choice and prosperity for British families. When the global financial crisis started last autumn, Gordon Brown worked closely with other European governments to agree a co-ordinated fiscal stimulus to boost the economy and stop bank collapses that would have wiped out millions of people's savings.

David Cameron doesn't seem to see it that way. His Conservatives are set on a path in Europe that would isolate Britain and hold back UK businesses.

Abroad, David Cameron plans a link-up with parties on the fringes of Europe. Will they get Britain a fair deal from Brussels? Cameron's own Euro MPs don't seem convinced. As the European parliament closed last week, Tory Euro MPs lined up to criticise Cameron’s policy on Europe. One, Christopher Beazely, thinks it's a “serious mistake” and another, Caroline Jackson, called it a “stupid, stupid policy” and “one of the most dotty escapades the Conservative party has ever embarked upon”.

The Tories’ own Shadow Business Secretary, Ken Clarke, thinks their attitude to the EU is ‘absurd’ and ‘crackpot’.

As well as the clear economic benefits our engagement in the EU brings, EU money helps support projects and communities across Britain. Since 2000, England has benefited from more than £5bn of European Regional Development Fund money, with a further £3.2bn to come by 2013.

I am proud that Labour works with our colleagues in the European parliament to ensure that this funding is available and effective. I believe Britain needs a strong voice and strong representatives to stand up for our country in Europe.

But here at home, the Tories are pledged to scrap the Regional Development Agencies (RDA) that make sure this EU funding gets where it's needed. In my region, the East Midlands, the European Regional Development Fund has helped 59 projects to the tune of nearly £31.7m in the last year alone. The Environmental Technology Centre at The University of Nottingham is one example, having received £3.2m to help businesses become more competitive and effective through the adoption of environmentally efficient technologies and practices.

Our British regions are very successful not only at making the case for regional development funding but also lobbying for extra help when needed. Did you know the South West RDA was able to set up a £2m flood recovery fund after the devastating floods in summer 2007?

Regional funding is about giving the money direct to those projects, without it going through London, or Cardiff or Edinburgh. Making decisions at a regional level ensures funds go to the right place and are most effective, which is why a recent report by independent auditors PricewaterhouseCoopers found that, overall, every pound invested by Regional Development Agencies grows the local economy by four times that.

Yes, that's right – RDAs grow local economies by over four times of what is initially invested. David Cameron’s Conservatives would put this at risk for local businesses and communities as they want to scrap them. This doesn't seem very good business sense to me.

David Cameron’s policy of isolation in Europe and the Tories’ pledge to scrap Regional Development Agencies would be a double-whammy against British businesses and local communities.

We need a strong voice in Europe, not isolation and cuts at the worst possible time. Labour's Euro MPs work hard to get Britain a square deal from Europe, and to support Gordon Brown's work to win the fight for Britain's future.

The Tories’ incoherent European policy is an approach that British businesses can’t afford.

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