Cities and regions

2000-2006 programmes

Although referred to as the 2000-2006 programme, new projects can still be commissioned and projects can continue to spend until 31 December 2008.

During this period, ERDF investment was allocated to meet two European Union structural fund objectives:

  • Objective 1
  • Objective 2

ERDF investment was also used to support two Community Initiatives:

  • Interreg (Inter-Regional Co-operation)
  • Urban

Objectives 1 and 2

In total £3.4 billion ERDF has been allocated to Objective 1 and 2 regions in England:

  • £1.2 billion for Objective 1 regions in England
  • £2.2 billion for Objective 2 regions in England (including £300million for the Interreg and Urban Community Initiatives)

Objective 1

Objective 1 investment is aimed at regions whose economic development was slow or lagging behind the EU average (ie below 75 per cent of the EU average Gross Domestic Product).

Objective 2

Objective 2 investment is aimed at regions with high levels of deprivation due to the decline of traditional economic activities.

Community Initiatives

Community Initiatives are measures of significant interest to the Community where Structural Funds can be used. Although they are covered by the Structural Funds principles, they are not limited to the Objective 1 and 2 programme areas.

Interreg (Interregional Co-operation)

This initiative is designed to encourage cross-border and trans-national co-operation between EU member states.

Urban II

This initiative promotes sustainable urban development and city regeneration.
The Interreg and Urban Community Initiatives collectively received approximately £300 million of ERDF investment.

Match funding

As a general rule, the EU contributes no more than 50 per cent of the eligible cost of a project, although it can be as much as 75 per cent for projects in Objective 1 areas, which are in the most need of economic regeneration.

The rest of the funding, known as 'match funding', comes from other sources such as:

  • Regional Development Agencies
  • local authorities
  • government schemes, including the Single Regeneration Budget
  • other public bodies
  • the private sector

The Government Offices

The Government Offices are responsible for delivering the ERDF 2000-2006 programmes in the English regions.

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