Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Communities and Local Government, with reference to the Answer of 3 December 2013, Official Report, column 630W, on EU grants and loans, how much and what proportion of 2007 to 2013 European Regional Development Fund monies allocated to the UK with match-funding in place have been (a) contractually committed and (b) drawn down in (i) each English region and (ii) in total to date.

The information requested is provided in the attached table (1). The “contractually committed” figures are up to 30 September 2014. All contractually committed funding has had match funding identified, so no separate figures are shown for this.

Across the programme, an average of 100% of the programme is now contractually committed. All spending of taxpayers’ money must ensure value for money; and money should not be spent on poor quality projects just for the sake of it. Spending must also comply with complex and bureaucratic EU rules, or else risk “financial corrections” down the line.

Where the contractually committed figure is slightly less than the total allocation, this reflects the restrictive, bureaucratic rules associated with the whole programme, and the lack of flexibility in the rules.

To place this in context, I attach with this answer a table (2) showing the allocations in the 2000-06 programme under the last Labour Government: only 93% of the allocation was ever committed, leaving £392 million of uncommitted resources; of which £48 million was uncommitted in the West Midlands Objective 2 area, £64 million uncommitted in the North West Objective 2 area, and £38 million uncommitted in the Yorkshire and the Humber Objective 2 area.

In this context, despite the complexities, the 2007-13 programme has been far better administered under this Government than the 2000-06 programme under the last Administration.

The European Regional Development Fund is a circular programme. UK taxpayers’ money is given to the European Union budget. Under the Fund, a local project receives a contract, spends money and then claims from DCLG. DCLG then claims funds back from the European Commission. The whole process goes through a complex auditing process involving DCLG auditors and then European Union auditors. After a period of time, the majority of unspent funding is returned to the UK Government by the European Commission. We continue to have concerns over the bureaucratic and time consuming nature of the processes involved in the programme, as a consequence of rules imposed by the European Commission.