Councils could lose EU regeneration funding

17 Jun 11
Local government leaders are warning that councils could lose their access to a vital source of regeneration funding because of European Union plans to limit the scope of its structural funds.

By Vivienne Russell | 17 June 2011

Local government leaders are warning that councils could lose their access to a vital source of regeneration funding because of European Union plans to limit the scope of its structural funds

Historically, these funds have been made available to local authorities, as well as central government, to regenerate deprived areas and tackle unemployment. In the current seven-year funding period, which runs until 2013, more that £8bn has been allocated to the UK.

But plans to reform the funds could exclude more prosperous EU nation, such as the UK, from the funding.

Dave Wilcox, chair of the Local Government Association’s European and international board, said: ‘There is a very real danger that the proportion of the budget allocated to structural funds in the 2014–2020 funding period will shrink. If that happens, the UK’s ability to access funds to renew and regenerate deprived areas could be hit very hard.

‘We are meeting with MEPs during their visit to London to argue that the UK, as one of the biggest contributors to the EU budget, must retain appropriate ways of recovering money to improve the poorest and most deprived areas in the country.

‘Structural funds have allowed councils to achieve that in the past. We are working to ensure that avenue remains open in future.’

The LGA met MEPs in London this week to raise their concerns.

Constanze Krehl, a German MEP and chair of the visiting delegation, said she had seen a lot of successful projects financed through the structural funds.

‘In the next financial framework we are going to ask for at least the same level of funding for cohesion policies, to allow us to provide sufficient funds for vital projects across the EU, including the UK.’

She added: ‘It is up to the UK government, in discussion with other member states, to make sure that this is in the end the case, and that this money is made available to the places which badly need it in the next decade.’

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top