UK to lose potential 13 billions euros of development funds through Brexit

New analysis from the Conference of Peripheral Maritime Regions (CPMR) estimates that the United Kingdom would be entitled to approximately 13 billion euros of regional development funding for the 2021-2027 period should it stay in the European Union.

The CPMR carried out a projection of the theoretical share of European Regional Development Fund and European Social Fund + funding for the United Kingdom for the 2021-2027 period if it remained a member of the European Union.

This projection, based on the European Commission’s allocation methodology for the ERDF and ESF+ funds, shows that the UK regions and nations would be entitled to an increase of 22% for the 2021-2027 period, compared to the allocation of 10.6 billion euros for 2014-2020.

This increase can largely be explained by the fact many areas of the UK are falling behind the EU average in terms of regional prosperity.

According to the CPMR projection, Cornwall & the Isles of Scilly and West Wales & the Valleys, the two regions in the UK currently classed as ‘less developed regions’ under the European Commission’s eligibility rules, would still stand to receive a significant share of the UK allocation of Cohesion Policy.

In addition, the regions of South Yorkshire, Tees Valley & Durham and Lincolnshire would also become less developed regions for the 2021-2027 period. All five of these regions would stand to receive EU support in excess of 500 euros per capita for the seven-year period.

The CPMR projection also shows that regional disparities in the UK are increasing. There are significant differences in aid intensity (funds per capita) from Cohesion Policy from one area to another.

The difference between Inner London, the UK’s richest NUTS II region with a regional GDP average of 614% of the EU average, and West Wales and the Valleys, the UK’s poorest with a regional GDP of 68% of the EU average, is particularly striking and a unique case in Europe.

CPMR Secretary General, Eleni Marianou, said:Our analysis provides clear evidence that Brexit would be disastrous for the regional development of UK regions. In CPMR we stand by our UK members and share their concerns on the persistent regional disparities that will be further aggravated.”

Read the CPMR analysis ‘UK entitled to €13bn regional funding if it remains in EU

The CPMR is a European organisation representing the interests of 160 regions from 25 countries from the European Union and beyond. The UK Members of the CPMR include the Welsh Government, several local authorities in Scotland including the Scottish Island Councils, and Cornwall Council and Southend-on-Sea Borough Council in England. It carried out this exercise in the context of the uncertainty of Brexit, and it forms part of a broader body of work carried out by the CPMR on Cohesion Policy funding mechanisms to understand the impact of the negotiations for the benefits of its Members.

Striving for enhanced territorial cohesion

Cohesion Policy is the main EU investment policy which aims at reinforcing economic, social and territorial cohesion in all regions.

The policy is delivered mainly through regional programmes and projects financed by the European Regional Development Fund, the European Social Fund and the Cohesion Fund. Cohesion is therefore at the core of CPMR’s activities.

CPMR advocates for a territorial investment policy to reinforce economic, social and territorial cohesion in all regions based on strong multi-level governance arrangements in partnership with regions and their citizens at its core.

A regular partner of the EU institutions, CPMR participates in the European Commission expert group on Structural Funds, the Network of Territorial Cohesion Contact point meetings and the Informal EU Council on Cohesion, and has a long-standing working relationship with the European Parliament.

CPMR is also a member of the S3 Platform Mirror Group and the Future of Cohesion working group at the Committee of the Regions.

The main areas of are:

  • A reinforced and legitimised role for Regions within Cohesion Policy
  • The role and impact of financial instruments within Cohesion Policy
  • Reducing the administrative burden and simplifying the Policy
  • A well-resourced Cohesion Policy for all Regions

CPMR actions on Cohesion Policy are coordinated by a dedicated working group (the ‘Core Group’).

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