UK Governments Levelling Up Agenda History & Need
The UK Levelling Up Agenda traces back to the regional economic developments since the 1930s, focusing on addressing economic centralization issues to promote balanced growth across regions. This agenda encompasses various dimensions, including the EU's role through funds like the European Social Fund and the European Regional Development Fund. The history, challenges, and successes of the UK's Levelling Up Agenda are discussed with insights into the need for economic rebalancing.
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Presentation Transcript
The UK Governments Levelling Up Agenda CRESR seminar - 13th October 2021 Malcolm Leitch, Economic Development Manager, Glasgow City Council
The UK Levelling Up Agenda the History New term but not a new concept in the UK Regional economic development since the 1930s (Assisted Areas etc) Urban Regeneration Urban Aid Programme (1969) Since 1999 straddles devolved/reserved competences (UK Internal Market Act 2020)
The UK Levelling Up Agenda the Need Increasing economic centralisation : London alone accounts for nearly one quarter UK GDP (up from 17.5% in mid 1990s) Greater South East up from 40% to 47% UK GDP over past 25 years. Differing Regional/Local Growth Trajectories : Example cash GDP growth in Edinburgh 1998-2019: 159% cash GDP growth in Ayrshire 1998-2019: 77%
Levelling Up in the UK The EU Dimension (1) Creation of European Social Fund (ESF) envisaged in Treaty of Rome European Regional Development Fund (ERDF) an element of the UK Accession negotiations in the early 1970s ERDF Formally set up in 1975 UK 2ndbiggest Beneficiary Up to 1988 both funds essentially subsidised national labour market/infrastructure investment programmes albeit with significant (and growing) local authority involvement
Levelling Up in the UK The EU Dimension (2) Major reform of EU Cohesion Policy 1988 Key features: Doubling of the size of the Funds; Criteria for designation of regions set at EU level; Programme Approach Multi Annual Perspective; Additionality; Coordination of the Funds
Period Approx UK Allocation (ECU/ s bn) 1989-1993 1994-1999 2000-2006 2007-2013 2014-2020 4.8 10.7 15.1 9.9 10.8
Levelling Up in the UK The EU Dimension: Good Points Medium/long term planning horizon Significant (in early period) project innovation Responsive (in early period) to regional priorities Promotion of partnership Additional resource for economic development
Levelling Up in the UK The EU Dimension: Not so Good Points Since 2007 increasing EU prescription on priorities More risk averse culture Elongated decision making processes Delays in flow of funds complex claiming and compliance burdens Evaluations process rather than result focussed.
The UK Levelling Up Agenda Success Factors Intervention at the right spatial scale Long term, multi annual approach Genuinely additional resource allocated on need. Decluttered Funding streams single pot if possible Shared commitment by all levels of Government Regional/local decision making with capacity building support