DERBYSHIRE County Council will receive £720,000 from the Government to help support small businesses.

The money is part of a £50m pot handed out by Communities Secretary John Denham under the Local Authority Business Growth Incentives scheme.

Under the initiative, councils are rewarded with money for providing services that promote local business.

Mr Denham said: "Local councils, and councillors, with their unique democratic mandate, are best placed to provide financial support and local services that are responsive to the pressures being felt by families and businesses in local areas."

But he was accused by the opposition of "spinning" the figures. Shadow Communities Secretary Caroline Spelman pointed out that ministers had promised double that amount, £100m, when they first launched the scheme.

She said: "This is a classic Labour spin operation. In Labour speak, a cut to councils of £50m becomes an increase in funding of £50m. Labour are being dishonest to councillors and to local firms in the depths of a recession."

Ministers admitted that funding for 2010-11 had been reduced from £100m to £50m as part of a review of Government spending priorities.