The European Union budget is made up of a proportion of the VAT charged on goods and services in the Member States, a share of each countries Gross National Product and custom duties from non-EU countries on goods which are imported into the EU.
A large proportion of these resources are redistributed into four Structural Funds each used to promote the economic and social development of the regions perceived to be lagging behind.
A region may have access to one or more of the four Structural Funds, depending on whether it has Objective 1 or 2 status; all regions have Objective 3 status. The four Structural Funds are:
· The European Regional Development Fund (ERDF)
· The European Social Fund (ESF)
· European Agricultural Guidance and Guarantee Fund (EAGGF)
· The Financial Instrument for Fisheries Guidance (FIFG)
The European Regional Development Fund (ERDF)
The European Regional Development Fund (ERDF) was set up in 1975 to stimulate economic development in the least prosperous regions of the European Union (EU).
The ERDF aims to improve economic prosperity and social inclusion by investing in projects to promote development and encourage the diversification of industry into other sectors in areas lagging behind. This fund is available in Objective 1 and 2 areas.
ERDF is aimed at economic regeneration projects promoted by the public sector. This involves:
· Government Departments
· Regional Development Agencies (RDAs)
· Local Authorities
· Further and Higher Education establishments
· Other public bodies
· Community and Voluntary Sector organisations
In certain circumstances, the fund can help the development of small and medium-sized enterprises (SMEs). Private sector companies are encouraged to present applications in partnership with a public sector body.
Individuals may not apply
There is no limit set for ERDF projects. Projects may request up to 50% of the total costs from ERDF. The rest of the funding, known as 'match funding' comes from other sources such as:
· Regional Development Agencies
· Local Authorities
· Government schemes including the Single Regeneration Budget
· Other Public Bodies
· The Private Sector
· Paid Staff and Volunteer time
The European Social Fund (ESF)
The ESF funds training, human resources and equal opportunities schemes to promote employability of people in both Objective 1 and 3 areas.
ESF is the main source of finance that the EU uses to help create and protect jobs. It supports the National Action Plan for Employment (NAP) which is produced every year. The NAP sets out the main UK policies and initiatives in line with the European Employment Strategy. It is written by the UK Government for England, Scotland, Wales and Gibraltar.
The ESF is used to give financial support towards the running costs of projects run by a variety of organisations. These projects can include those for training, employment, education, research and childcare. ESF also supports Government programmes, including New Deal.
The whole area of eligibility for European funding is a complex one. If you meet the following criteria you may be eligible to apply for European Social Funding.
You are a legally constituted organisation (i.e formed with a legal document such as an agreement of memorandum of association). Large companies are eligible to apply for ESF providing they work in partnership with small and medium sized enterprises (SMES) and at least 50% of the beneficiaries will be from SMES.
Individuals cannot apply for European Social Fund money.
Your organisation is involved in an activity in one of the supported measures and is currently in receipt of financial support from the public sector (typically 10% of total costs).
European Agricultural Guidance and Guarantee Fund (EAGGF)
EAGGF is available in rural Objective 1 areas to encourage the restructuring and diversification of rural areas, to promote economic prosperity and social inclusion, whilst protecting and maintaining the environment and our rural heritage. In areas outside Objective 1, the EAGGF (Guarantee section) provides funding within the England Rural Development.
The Financial Instrument for Fisheries Guidance (FIFG)
The FIFG funds projects to modernise the structure of the fisheries sector and related industries and to encourage diversification of the workforce and fisheries industry into other sectors. It also aims to ensure the future of the industry through achieving a balance between resources and their exploitation.
West Lindsey District has objective 2 status.
Contact the Economic Development team on
Tel : 01427 676676
Fax: 01427 810622
Email: ed®en@west-lindsey.gov.uk
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