ERDF/ESF 2014-20

Thursday 27th June 2013 Written Statements

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

I am today confirming how the €6.2 billion England allocation of the European regional development fund (ERDF) and the European social fund (ESF) will be allocated.

The European regional development fund, the European social fund and part of the European agricultural fund for rural development (EAFRD) will be allocated to local enterprise partnerships (LEP) areas for a full seven-year period through a new decentralised EU growth programme.

The Government have given a commitment that the growth programme funds will be allocated to local enterprise partnership (LEP) areas as an important new source of finance to stimulate local growth and jobs. This marks a significant shift from previous European programmes which were substantially centralised with limited local involvement in many key areas. Under this new model, decision-making powers will be transferred from Whitehall to local areas. LEPs and local partners will be in charge of European funds that will provide significant investment in innovation, business, skills and employment in a common agenda for growth and jobs that will integrate effectively with wider LEP strategic plans.

In February, the Prime Minister negotiated a real-terms cut in the EU budget for the first time in history. As the independent Office for Budget Responsibility has said, the effect of this deal was to reduce its forecast for what taxpayers across all parts of the UK will pay by £3.5 billion over the next five years.

The Government have set allocations that deliver the fairest split of funding across England, as far as EU rules allow. Allocations by LEP area for ERDF and ESF are set out in the annex. Allocations for the part of EAFRD being channelled through the growth programme will be published at a later date by the Department for Environment, Food and Rural Affairs.

Gibraltar’s current allocation will be frozen at €9 million and will be taken from the England allocation for “more developed” regions (Gibraltar is counted in this category).

The Government have today also confirmed the detailed allocations for the highlands and islands region in Scotland as €172 million and the allocation for west Wales as €1,783 million and for east Wales as €361 million.

All allocations are subject to final agreement on the EU regulations and the EU 2014-20 budget in the European Parliament. The European Commission will also need to agree the UK Government’s specific proposals.