JRF - UK government needs a plan to boost poorest regions following Brexit
Billions of funding, worth £8.6 billion, to boost the economies of the poorest parts of the country must be protected following Brexit.
JRF, based in the North of England, is calling on the Government to ensure it has comprehensive plans in place to boost regional economies after the UK has left the EU.
The call is prompted by analysis of European Structural and Investment Fund (ESIF). It shows the funding each Local Enterprise Partnership (LEP) area is allocated to receive.
The cash is crucial to ensure regions do not fall further behind. England receives almost £5.6 billion to share between its 39 LEPs, Wales receives £1.9 billion, Scotland £720 million and Northern Ireland £414 million. The money is allocated to 2020.
The 12 regions which receive the most EU funding.
The official Leave campaign said it would honour existing EU grants until 2020, including funds for regional development. European funding plays an important part in mitigating the effects of poverty in some of the poorest areas of the country - ones that also voted in favour of leaving the EU.
For example, between 2014 and 2020:
- Cornwall is allocated £863 per head (£476 million for the region)
- Wales: £627 per head (£1.9 billion for the region)
- Tees Valley: £243 per head (£162 million for the region)
- North Eastern: £221 per head (£430 million for the region)
In the 11 Northern Powerhouse LEPs, £2 billion is at stake. Alongside Tees Valley and North Eastern listed above, the remaining Northern regions, allocated per region, per head receive:
- Greater Manchester £333 million, £121 per head
- Leeds City Region - £314 million, £103
- Lancashire - £213 million, £144
- Liverpool City Region - £178 million, £116
- Sheffield - £167 million, £90
- Cheshire - £114 million, £124
- Humber - £82 million, £88
- Cumbria - £74 million, £147
- York, North Yorkshire and East Yorkshire - £73 million, £64
JRF says it is vital that whatever happens in the negotiations, the UK holds onto the allocated cash and that it is not clawed back following Brexit. The analysis shows that after 2020, it is crucial the UK government has a plan in place to help regions create prosperous local economies and ensure growth is shared across the country.
Helen Barnard, head of analysis at JRF, said:
“The referendum campaign and its aftermath has exposed the extent to which people in the poorest places feel shut out from the benefits of the country’s prosperity. These figures show the challenge in ensuring they do not fall further behind from lost EU funding after 2020.
“We urge the government to ensure allocated funding is not lost, but that it also has a long-term plan in place to improve living standards in struggling areas. This means working with town halls, LEPs and businesses to create more and better jobs across the country. Otherwise important initiatives like the Northern Powerhouse risk withering after Brexit.
“Brexit must be used to ensure we create an economy where prosperity is shared by all and no area is left behind. This means supporting the Northern Powerhouse and the core cities, but also the overlooked towns beyond them, which often miss out and need to see real improvements over the next few years.”
Recent JRF research on uneven growth has shown 10 of the 12 UK’s struggling cities are located in the Northern Powerhouse and outside the Core Cities – the biggest outside of London.
Full breakdown for all regions
Funding by region
|Region||Population||Funding (Euros)||Funding (£ 2014 Prices)||Funding Per Head (2014 Prices)|
|LEP Area||Population||Funding (Euros)||Funding (£ 2014 Prices)||Funding Per Head (2014 Prices)|
|Buckinghamshire Thames Valley||528,400||13,800,000||11,129,590||£21.06|
|Cheshire and Warrington||917,000||141,600,000||114,119,267||£124.54|
|Coast to Capital||1,996,400||67,000,000||54,034,964||£27.07|
|Cornwall and the Isles of Scilly||551,700||590,400,000||476,152,877||£863.06|
|Coventry and Warwickshire||899,400||135,500,000||109,279,666||£121.50|
|Derby, Derbyshire, Nottingham and Nottinghamshire||2,161,400||244,000,000||196,784,048||£49.61|
|Greater Birmingham and Solihull||1,996,200||254,800,000||205,494,162||£102.94|
|Greater Cambridge & Greater Peterborough||1,423,300||75,200,000||60,648,198||£42.61|
|Heart of the South West||1,714,600||117,800,000||95,004,758||£55.41|
|Leeds City Region||3,026,700||389,500,000||314,128,634||£103.79|
|Sheffield City Region||1,842,200||207,200,000||167,105,142||£90.71|
|South East Midlands||1,807,100||87,900,000||70,890,647||£39.23|
|Stoke-on-Trent and Staffordshire||1,114,200||160,900,000||129,764,563||£116.46|
|Swindon and Wiltshire||703,300||43,400,000||35,001,753||£49.77|
|Thames Valley Berkshire||890,600||28,500,000||22,985,022||£25.81|
|West of England||1,118,800||68,300,000||55,083,404||£49.23|
|York and North Yorkshire||1,145,800||91,700,000||73,955,316||£64.54|
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