Economic regeneration plans for the capital have been dealt a further blow as a new Freedom of Information (FOI) request by the Green Party reveals tens of millions of pounds allocated to London under EU programmes have been jeopardised by the Government’s decision to bar the London Development Agency (LDA) from providing the matching funds required by the EU Commission.
The FOI request shows that approximately £262 million from the European Social Fund and £93 million from the European Regional Development Fund allocated to London for the 2007-2013 period was unspent as at the end of August 2010 [1]. Some funds will be contractually committed and hence will still be paid out despite the Government’s announcement. Other funding under the ERDF is not matched by the LDA and hence is not threatened by this decision either. However tens of millions of pounds of unspent funds awarded to London are at risk due to the Government’s actions.
Noel Lynch, chair of the London Green party said:
"These figures demonstrate the rashness of the Government’s actions. These European funds should be being used right now to help offset the effects of the coalition’s cuts in London. Instead we have total planning blight with projects unable to proceed and the ridiculous prospect of tens of millions of pounds of funding being returned from London to Brussels. The Government needs to act quickly to undo the chaos it has created in planning for London’s economic development and ensure that not a single penny of EU funds are lost."
Notes to editors
[1] Quotes from response to FOI request from London Development Agency:
European Social Fund
London has been awarded an allocation of £420 million ESF as part of the England and Gibraltar ESF programme for 2007-2013. Approximately £240m ESF has been committed to date and actual spend to end August 2010 is approx £158m.
European Regional Development Fund
The current value of the ERDF programme is £158m ERDF (fluctuates with the exchange rate)