BRADFORD MP Naz Shah is leading Labour's charge against a planned Government cash-grab of Lottery funding.

The Bradford West MP led a debate in Parliament's Westminster Hall yesterday about the proposals, leaked by Whitehall sources ahead of today's Autumn Statement.

Chancellor George Osborne is said to be planning to take up to £320 million from the Big Lottery Fund to compensate the Arts Council for planned Government cuts.

Ms Shah said this would leave less for the voluntary and community sector, which had already suffered huge funding cutbacks.

She said: "Just a few weeks ago I spoke at a 'celebration of achievements event' of a local women's refuge, the Blenheim Project, which closed due to the funding cuts - that's 18 bed spaces of the total of 55 lost across our city as a whole.

"Unfortunately this isn't the first organisation to close and won't be the last."

Ms Shah added: "The charity had 37 long years of hard work, supporting hundreds of women and providing exceptionally high-quality support to prevent women and children from becoming permanently homeless. It had proved itself successful, but could not find a sustainable financial platform despite offering a service that others could not, and for a modest sum when all its intangible benefits are considered. If it was not the definition of a public good that we in this House should protect at all costs, what is?

She added: "Only a few months ago another very well used and valued project, called Manningham Mills Community Association, also closed, leaving a vacuum in the local community.

"These are a couple of examples which are local to me but this picture is being repeated across the country in the name of austerity, suffocating organisations already struggling with cuts and which are sometimes a real lifeline to its service users."

Ms Shah said she had been dismayed to hear of the plans for the Lottery cash.

She said: "And now we hear that despite the agreement of the Big Lottery Fund remaining 'from the people, for the people', the Chancellor is planning to take a slice of around £300 million to subsidise his cuts in the arts, heritage and sports.

"My message to him is clear and echoes that of many: this is not your money Mr Osborne, the nasty party can keep its nasty hands off it."

During the debate, Conservative MP Chris Davies accused Ms Shah of making it sound like "the whole of the third sector had disappeared".

He said Ms Shah was "making a generalisation", adding: "I regret the fact that the hon. Lady is making it sound like the third sector has vanished."