UK left £4.3bn worse off in EU funding shake up

UK left £4.3bn worse off in EU funding shake up 


Alexandra Coxon
Regeneration & Renewal
27.10.06



The UK is set to lose nearly 40 per cent of the European Union aid that it was previously allocated for economic development.


Revised government plans published this week reveal that the UK’s share of European structural funding is set to drop from the 15.9 billion euros (£10.7 billion) it received from 2000-06 to 9.6 billion euros (£6.4 billion) for 2007-13. All figures are in today’s prices. This is due to this funding being switched to the new EU member states.


Under the plans, Cornwall and the Isles of Scilly, West Wales and the Valleys, and the Highlands and Islands of Scotland – will be eligible for convergence funding of 2.6 billion euros (£1.7 billion) to help bridge the gap with more prosperous areas. All three areas have per capita incomes that are less than 75 per cent of the EU average.


Despite this, the new proposals would lead to seven of the UK’s 12 regions and nations being handed less than half the structural funds they received under the last funding round. The worst hit will be Yorkshire and the Humber and the North-West, which are set to suffer a reduction of approximately 57 and 56 per cent respectively.


A Department of Trade and Industry spokesman said: ‘Both these regions look as though they have taken an unfair cut, but this is because Merseyside and South Yorkshire have lost their special funding status because their economies have become stronger since the late 1990s, although they still get some transitional funding.’


– UK National Strategic Reference Framework for the EU Structural Funds from 2007 to 2013 is available via www.regen.net/doc


EU STRUCTURAL FUNDING


TOTAL STRUCTURAL FUNDS BY REGION IN MILLIONS OF EUROS 2007-13 (2000-06)


North-East 545 (1,106)
North-West 1,164 (2,642)
Yorkshire & the Humber 880 (2,062)
East Midlands 458 (732)
West Midlands 685 (1,430)
East of England 303 (528)
London 597 (1,072)
South-East 224 (491)
South-West 818 (960)
England 5,675 (11,024)
Wales 1,971 (2,107)
Scotland 731 (1,614)
Northern Ireland 419 (891)
Total 8,796 (15,635)


Allocations for 2007-13 are in 2004 prices. Allocations for 2000-06 are
based on 1999 prices but have been weighted to bring them in line with
2004 prices.