Merseyside to get £450m of European Union cash to boost economic growth
Around half a billion pounds is set to be ploughed into Merseyside in a proposed European investment package aimed at kick-starting the region’s stagnated economic growth.
Brussels’s £450m injection over six years would target “priority areas” of unemployment, poverty and support for small and medium-sized enterprises (SMEs).
Liverpool itself would also benefit from a share of a £13bn “cities” pot for continued urban development, a figure set to run into tens of millions.
Europe’s draft Cohesion Policy – announced this week and to run from 2014 to 2020 – would also see £18bn shared in bonus payments to regions that meet strict funding criteria.
City councillor Flo Clucas, a leader in the EU’s Committee of the Regions (CoR) – an assembly of local and regional representatives – said the funding was “critical” for Merseyside.
She said: “Given the state of the economy, this funding is really the only game in town.
“The national government isn’t going to have the cash, local government isn’t going to have the cash, so if we are to enhance the offer that we have and build new facilities, jobs and growth in Merseyside, this is our only real opportunity.
“It will be 12 to 18 months before a final decision is made but the clear message from the CoR is that investment is key to growth. This package would make an enormous difference to Merseyside as a whole. It is a fantastic platform from which we can build on what we have.”
Under the plans, which must be endorsed by the European Parliament and Council of Ministers, Merseyside would share a 376bn euro pot targeting 11 distinct priority areas, including skills development, research and development and transport infrastructure.
On Merseyside – a so-called “transition region” for its less than average GDP – a minimum 50% of funding would be allocated towards energy efficiency, innovation and boosting SMEs.
A minimum of around 20% must be spent on projects combating social exclusion and poverty.
Cllr Clucas added: “The money will allow cities like Liverpool to develop a long-term growth plan, invest in training, support existing businesses and help new ones.
“If you support SMEs, jobs will be created. The days when 40,000 people worked on the docks have long gone; it’s difficult to see a situation where the big employers will create the jobs in the future.
“We’re looking to SMEs to create the jobs that will in turn lead to growth.”
Liverpool would have to fulfil certain objectives with cash from the “cities” fund, including increasing the skill-set of university graduates and improving energy efficiency.
New partnership contracts will set out clear targets and an £18bn financial performance reserve will reward areas which best achieve their goals. Strict monitoring could see cash suspended or clawed back if projects do not meet targets.
Johannes Hahn, commissioner for regional policy, told the Daily Post: “Cohesion policy has already contributed a lot to building prosperity in the EU.
“But, given the economic crisis, it must now become a motor for growth and competitiveness. Our proposals will make EU funds work even harder.”
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