Chuka Umunna has written to Vince Cable, the business secretary, demanding an explanation for the "lack of progress" on getting RGF money to businesses - and seeking clarification on how many companies the fund has actually assisted following apparent disagreement within the coalition.

The £1.4bn fund, which is to be spread over three years, was established by the Coalition to boost growth in areas worst hit by public spending cuts. Last week, Labour leader Ed Miliband said the fund has helped two businesses in 16 months, and distributed just £5.8m.

In a letter seen by the Daily Telegraph, Mr Umunna said "inertia" at the Department for Business (BIS) was preventing "money [going] out of the door" to projects that have already been approved for funding.

In April, it was announced that 50 projects had been successful in winning funding from the RGF's £450m first round.

"Virtually all of the projects are still waiting to receive their funding more than six months after this announcement," Mr Umunna said.

The fund, which was hugely oversubscribed with bids, was created to mitigate the impact of winding down the nine English regional development agencies (RDAs). Bids came from businesses and Local Enterprise Partnerships, the bodies set up to replace RDAs - which had an annual budget of £1.4bn.

"The funding for the last year of the RDAs was equivalent to three years of the RGF, and the RGF is intended to cover a wider scope of projects too, spreading the money even more thinly," he said.

"It means the RGF was massively oversubscribed and there are now many more losers than winners. Of the winners, almost all have still not received a penny [and] this is at a time when growth has halted and the recovery has been choked off."

Mr Umunna added that it is "worrying" that ministers are not aware of the status of "this flagship Government programme".

Danny Alexander, chief secretary to the Treasury, appeared to deny said the RGF had helped only two companies in an interview on BBC Radio 4 last week, although BIS confirmed that just two businesses have been funded so far.

Mr Umunna said: "In order to clear this up, and give certainty to businesses, can you publish and confirm ... the list of projects announced on April 12 and which of these have actually received the funding, the date that this took place and for those that have not, the date that this will happen?

"We need [to get] growth going but all we are seeing is a lack of urgency and action from the Government."

A spokesman for the Business Department said: "We said in April when we announced the successful bidders from the first round that bidders will start to receive their share of the £450m in the autumn. Two projects have now received their funding.

"More announcements on individual companies receiving their funding, and successful bidders in the second round of the fund will be made shortly."

Source: Daily Telegraph