§ Ms WalleyTo ask the Secretary of State for the Environment if he will provide for full additionality for European regional development fund schemes by extending the automatic cover available for European regional development fund receipts to include the matching local authority contribution; and if he will make it his policy to maintain the levels in other areas of local authority capital spending.
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§ Mr. BaldryThe Government already provide for the full additionality of European regional development fund —ERDF—receipts.
Matching funds can come from a variety of sources including:
- —Local Authorities
- —City Challenge
- —Derelict Land Grant
- —DTI Funds for Regional Assistance
- —British Rail, water companies
- —voluntary bodies and Charities
- —Economic Regeneration Bodies
- —TECs
- —private sector.
From 1 April 1994, an important source of matching funding for ERDF projects will be the single regeneration budget, which will merge 20 separate domestic public expenditure programmes.
Local authorities are required to provide matching funding from within their existing resources, as are all ERDF beneficiaries. It is important that local authorities continue not to be treated differently from other beneficiaries in this respect. They must determine their own priorities in deciding whether or not to allocate resources to ERDF programmes. They must consider all the options available to them, with or without ERDF funds, and must decide which will offer the best value for money, whilst meeting local priorities. But they do have a further active contribution to make to the effective delivery of ERDF programmes to their areas, through their membership of partnership committees.
To increase local authority financial resources in the manner requested would act as a disincentive to resources being spent judiciously and would be contrary to the Government's policy of firm control over all United Kingdom public expenditure.