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Structual funds

Much of the Regional Aid is distributed through Structural Funds. These exist to promote social economic cohesion within the EU by reducing inequalities between regions and promoting economic development in these areas.

There are four principal types of Structural Funds, namely European Regional Development Fund (ERDF), European Social Fund (ESF), European Agricultural Guidance and Guarantee Fund (EAGGF) and Financial Instrument for Fisheries Guidance (FIFG).

The funds are used to finance the priorities laid down by the EU. These priorities are called Objectives, and depending on the action required, draw on one or more of the funds to finance the activity. Special priorities are made from time to time to deal with specific problems (eg the decline of the coalfields). These are called Community Initiatives which also draw on one or more of the Structural Funds.

Two of the four Structural funds are applicable for Walsall:

  • European Regional Development Fund (ERDF). This provides capital and revenue funds for economic regeneration projects, particularly in run down areas facing restructuring problems and industrial decline. Examples of capital projects may be the construction of roads or buildings; revenue funding might include salaries, running business support schemes, etc.
  • European Social Fund (ESF). This is set up to help reduce the difference in living standards between the regions of the European Union (EU), by:
    • Reducing unemployment;
    • Improving and developing the skills of employed people;
    • Investing in industrial or rural areas which are in decline;
    • Investing in areas with low economic development.

The current Structural Programme runs from 2000 – 2006.

Structual funds objective

The Objectives

The Structural Funds have 3 Objectives or general aims that are called Objective 1, 2 and 3. Each states its own criteria for funding, the timescales involved and the geographic areas to which it applies. Inclusion in one or more of the Objectives is necessary to qualify for assistance from the Structural Funds. Walsall is eligible for Objectives 2 and 3 as detailed below:

Objective 2

This is aimed at assisting regions seriously affected by industrial decline, with money from ERDF (European Regional Development Fund) for capital and revenue projects and ESF (European Social Fund) for training projects. Objective 3 is only available to specific areas of the West Midlands. The majority of Walsall is in the core Objective 2 area. Four wards, namely Pelsall, North Willenhall, Pheasey and Aldridge are in a transitional area and are only eligible for limited Objective 2 Funding.

The four themes of Objective 2 are based on the themes of the West Midlands Regional Economic Strategy namely:

  1. Developing a diverse and dynamic business base
  2. Promoting a learning and skilful region
  3. Creating the conditions for growth
  4. Community Regeneration

The Objective 2 geographical coverage for Walsall is:

For opportunities to access Objective 2 funding check out the [Objective 2 Funding Opportunities] [Link to Website Funding Opportunities]

Objective 3

Objective 3 ESF aims to offer guidance, training and support which lead to qualifications and employment. Objective 3 is now mainly accessed through co-financing organisations. Objective 3 ESF money is not available for individuals to take up personal training places. Organisations in any part of the EU can apply under Objective 3 and Walsall has made use of it each year.

There are five policy areas for the Objective 3 ESF Programme:

  1. Developing active labour market policies to combat unemployment
  2. Promoting equal opportunities for all, social inclusion and lifelong learning
  3. Widening participation in Lifelong Learning
  4. Improving systems to promote a skilled, trained and adaptable workforce
  5. Improving the participation of women in the labour market and gender specific barriers

Objective 3 aims to improve people’s skills and employment prospects by:

  • Tackling long-term unemployment;
  • Help young people and those at risk from not being able to find work;
  • Improve training, education and counselling for lifelong learning;
  • Encourage entrepreneurship and adaptability in the workplace; and
  • Promote equal opportunities and improve the role of women in the workforce.

The actions of the Regional West Midlands Development Plan (see www.westmidlandsworkingtogether.org.uk ) are split into Policy Fields and Measures reflecting the regional priorities for the West Midlands, which are targeted at the most deprived areas in Walsall

For opportunities to access Objective 3 funding check out [Objective 3 Funding Opportunities] [Link to Website Funding Opportunities]. For more information [contact] [Link to Website Contacts].

Both Public and Private sector organisations can apply for and use ESF funds, which are advertised through tendering rounds publicised on the Government Office for the West Midlands website, www.westmidlandsworkingtogether.org.uk