LGA hails lobbying success over EU structural funds but fears government intervention

The Local Government Association has welcomed the European Union’s confirmation of regional cohesion funding for 2014-2020, but concerns remain that the government will try and divert the funding.

The EU’s budget proposals allocate €376bn to such structural funding programmes. But the regime will also be reformed in a number of ways. Under the proposals:

• Funding will be concentrated on a smaller number of priorities in line with the Europe 2020 goals
• Each country will agree with the Commission on a partnership contract: this will set priorities for investment and targets to be achieved
• Funding conditions will be brought in before aid is granted
• Monitoring of the programmes will be improved
• Additional funding will be made available for those programmes that make the biggest contribution to growth and job creation
• Common rules will be introduced for the various funds targeting social development, rural areas, coastal areas, cooperation between border regions, fisheries, and less developed countries
• Programmes will be able to combine support from some of the funds
• Administrative burdens will be made simpler

The proposals will come into effect in 2014, should they be approved by national ministers and the European Parliament in 2012.

The LGA said its lobbying alongside other EU local government organisations to protect the structural funding had paid off. However, it expressed concern that with the funds previously being administered by now defunct Regional Development Agencies, the government will look to hold onto the funding. The current round of funding is worth £8bn to the UK.

The LGA said the EU plans would be subject to negotiations between MEPs, local authorities and the government. The Association said it was “vital that these funds are managed and spent at a local level”.

Sir Merrick Cockell, LGA Chairman, said: “The LGA are pleased that local communities have this opportunity to utilise billions of pounds worth of EU funding. There had been concerns the money would be diverted elsewhere, so I am delighted our efforts at the EU have paid off and we will be pushing to ensure that councils can take up this opportunity. This is a timely boost for local government.”