By Richard Johnstone | 7 October 2011
The Local Government Association has said it had succeeded in protecting billions of pounds of European Union funding for councils
The umbrella group of local authorities claimed the money had been at risk due to changes in the way that European money is spent.The EU is planning to reduce the scope of its spending in the run-up to 2020. Likely cuts in its budget and a targeting of development funds at new Eastern European member states also put funds for councils under threat.
However, following the European Commission’s publication yesterday of its planned allocation of funding for 2014 to 2020, the LGA and other EU local government organisations said their lobbying had succeeded insafeguarding the cash.
They said the announcement confirms that ‘multi-billion’ pound funding will still be earmarked for local authorities, although the exact amount has not yet been determined. The current seven-year funding, which ends in 2013, is worth more than £8bn to the UK, from pots including the European Regional Development Fund and European Social Fund.
The commission’s plans will now be subject to negotiations between members of the European Parliament and the government. A final deal will be sealed in 2013, when member states will sign a partnership contract with the commission agreeing their national development needs and priorities.
LGA chair Sir Merrick Cockell said he was ‘pleased’ that the funds would continue.
The group also called for the government to ensure that the funding is passed on to local authorities when the new agreement begins.
Despite the commission’s decision, there remains a concern that the money could be retained by Whitehall, as it will be distributed centrally following the abolition of regional development agencies.
