How much Scotland will receive
The development of the 2007-2013 Operational Programmes is set against a backdrop of considerable change. In particular, with EU enlargement and the shifting of EU funds towards the new Member States, the UK, like many other Member States, will experience a significant reduction in the level of its Structural Funds receipts.
Scotland will receive approximately 40-45% of what it currently receives in the 2000-2006 period.
Highlands & Islands will receive €174 million (approximately £117 million) as a 'statistical-effect' transitional region under the Convergence Objective, which replaces the current Objective 1 and which will support the EU's poorest regions. This figure, which will cover both the ESF and ERDF programmes, represents a cut of almost 50% on what the region currently receives. We are proposing an approximate 70/30% split between the ESF and ERDF Programmes and are currently consulting on this issue.
The rest of Scotland ( Lowlands & Uplands Scotland) will receive funding through the Regional Competitiveness and Employment Objective. Allocations on the UK pot of Competitiveness funding have been decided by the UK Government in consultation with the Devolved Administrations.
Lowlands & Uplands Scotland will receive €645 million (approximately £434 million) under the Competitiveness Objective, the next tier of funding available for all regions not eligible under the Convergence Objective. This represents a reduction of approximately 53% on current Structural Funds levels in the area. This will break down as €375 million (approx £252 million) for the ERDF Programme and €270 million (approx £181 million) for the ESF Programme.
It is clear that, with this significant reduction in funding, Structural Funds Programmes over 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 contribute towards our strategic domestic goals and which will leave an economic development legacy in Scotland post-2013. Further details on our plans for Structural Funds spending are contained in the draft Operational Programmes.
The development of the 2007-2013 Operational Programmes is set against a backdrop of considerable change. In particular, with EU enlargement and the shifting of EU funds towards the new Member States, the UK, like many other Member States, will experience a significant reduction in the level of its Structural Funds receipts.