Allan Wilson MSP
News - Press Releases - 2006
As
Deputy Minister for Enterprise and Lifelong Learning

Scotland to Get 720 Million Euros of European Structural Funding For Next 7 Years - 23rd October, 2006

 

Every region of the UK has been given a share of the European economic development money.

As well as the 157 million Euros funding already announced for the Highlands and Islands, the rest of Scotland (Lowlands and Uplands) will receive a total of 573 million Euros for 2007-13.
 

The UK Government today announced how 9.6 billion Euros of European Structural Funds will be distributed across the UK over the next seven years.

As well as the 157 million Euros funding already announced for the Highlands and Islands, the rest of Scotland (Lowlands and Uplands) will receive a total of 573 million Euros for 2007-13.


Every region of the UK has been given a share of the European economic development money.

The three poorest regions (Highlands and Islands, Cornwall and West Wales & the Valleys) share 2.6 billion Euros, with the allocations for these regions agreed at EU level last December.

The UK’s remaining regions will share the funds from what is now known as the Competitiveness Objective.

Commenting on the allocations, Deputy Enterprise Minister Allan Wilson said:

“It has been clear for some time that Scotland, like the UK as a whole and all the richer countries in Western Europe, would receive a significant reduction in funding under the Competitiveness Objective for 2007-13.

“Scotland’s allocation of 573 million Euros in Competitiveness funding represents almost 11 per-cent of the UK’s total Competitiveness pot.

“Though the reduction in the UK and Scotland’s funding is disappointing, it does reflect our strong economic performance over the past few years, and we will continue to receive more per capita (122 Euros) under Competitiveness funding than England (91 Euros) and Wales (114 Euros).

“Scotland also qualifies for 158 million Euros in the Highlands and Islands under the Covergence Objective, the highest level of funding available recognising the particular economic challenges which continue to face this region.

“It is clear that delivery of the Structural Funds Programme for the next seven years will need to be more targeted than ever before.

“We will need to focus not only on activities which have the highest value added, but on activities which will leave an economic development legacy in Scotland post-2013.

“For the first time, we have the opportunity to to align the Structural Funds programmes with our strategic domestic goals of economic growth and opportunity, social inclusion and sustainable development.”

The Scottish Executive will issue a consultation paper later this week on how to distribute the European Structural Funds for 2007-13.

NOTES:

1. Structural Funds play a major role in supporting regional development and employment across the EU. The Department of Trade and Industry announced today how the 9.6 billion Euros of ESF will be distributed across the UK over the 2007-13 period. In the current seven year period the UK was given 15.8 billion Euros.

2. The Highlands and Islands will receive 158 million Euros as a ‘statistical effect’ transition region under the Convergence Objective, which replaces the current Objective 1 and will support the economic convergence of the poorest regions. This figure, which will cover both the ESF and ERDF programmes, represents a cut of almost 50 per-cent on what the region currently receives.

3. The rest of Scotland (Lowlands and Uplands Scotland) will receive 573 million Euros through the Regional Competitiveness and Employment Objective. Allocations on the UK pot of Competitiveness funding are decided by the UK Government in consultation with the Devolved Administrations. The Scottish allocation for 2007-13 is 10.8 per-cent of the UK total, and represents a reduction of 58 per-cent on current Structural Funds levels in Lowlands and Uplands Scotland.
 

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Allan Wilson MSP 01294 605040 (Office)
 

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