Four million pounds which was promised to good causes across Cambridgeshire will be diverted to deliver superfast broadband.

County council leader Cllr Nick Clarke said the project was “vital” for quality of life and business but the decision sparked criticism since the authority said it was prepared to borrow to provide speedy internet.

The cash was earmarked for charities, voluntary groups and council projects under a system called local public service agreements (LPSA), but was withdrawn by the Government last year with only half of the £9 million fund distributed.

Losers included a youth bus, a carers’ network and projects which tackled homelessness, child obesity and domestic abuse.

The outstanding money was eventually paid after representations were made, but by then many of the planned schemes had shut down.

Cllr Clarke said district authorities, but not the city council, had backed spending most of the money on broadband, with a small proportion set aside for “worthwhile social and health projects”.

He said: “Better broadband is vital for Cambridgeshire. It brings business, jobs and therefore opportunities and better quality of living.

“In turn this means less strain on our support services and charities, freeing up their resources to deal with the most needy.”

Cllr Clarke said he wanted to work more closely with charities, but opposition leader Cllr Kilian Bourke said he should have put his money where his mouth was.

Cllr Bourke said: “Nationally David Cameron eulogises the Big Society but locally Nick Clarke’s Conservatives are gutting the voluntary sector. 

“Many of these projects would still be viable with some support – at a time when the voluntary sector is experiencing unprecedented demand it is imperative that local councils continue to support their charitable work.”

Cllr Bourke said the council’s accounts were being “offset at the expense of the voluntary sector”.

City council leader Cllr Sian Reid said she was “very disappointed the voluntary sector was not consulted”.

She said: “Cambridge City Council is committed to fighting for the voluntary sector to get a fair share of money from this Government grant.”

Providing superfast broadband within four years could cost the public and private sectors £70 million, as the News reported.