After Objective One
From the IPPR press release, the new funding for 2007-2013 breaks down thus:
Total UK share of the EU Structural Funds: £6.5 billion.
Convergence objective: £1.8 billion: replaces Objective 1. Only Cornwall and the Isles of Scilly; West Wales and the Valleys; and Scotland’s Highlands and Islands are eligible. No major urban area will benefit – a change from 2000-2006, when both Merseyside and South Yorkshire had Objective 1 status.
Competitiveness and Employment programmes: £4.3 billion. This covers all other areas of the UK, replacing the old Objectives 2 and 3. Merseyside and South Yorkshire will receive ring-fenced funding of £310m and £275m, about one-third of their 2000-2006 EU allocations. The distribution of the remaining £3.5 billion has not yet been decided.
Co-operation programmes: £0.4 billion. This covers cross-border collaboration.
These funds will be spread over seven years, equivalent to around £900 million each year for the whole of the UK. Domestic spending on enterprise and economic development alone amounted to £4.7 billion in 2004-05 (HM Treasury, 2005).
The IPPR's Centre for Cities recommends that the uncommited £3.5 billion be concentrated on city-regions, particularly those away from the affluent (on aggregate) and over-developed South East -
it is the big city-regions outside London – Birmingham, Manchester, Leeds, Tyneside and Glasgow – that can most effectively use limited EU resources to deliver a step-change in economic growth. investment, enterprise, innovation, skills and employment.
Sensible enough, even though the idea of city-regions has yet to win many admirers in the regions rather than the cities - such as Halifax and Calderdale, where the councillors seem to bristle at being made to seem subordinate to Leeds. And given the IPPR's traditional closeness to New Labour, I wouldn't be surprised to see these recommendations being carried through to some greater or lesser extent.
A pdf of the full IPPR report can be downloaded here.