The government has published a draft map of assisted areas where companies will be eligible for regional aid in future.
The current map has been in force for seven years and under EU rules expires on January 1, 2007. The new map follows a full first stage consultation and will be subject to further consultation. The map has the explicit aim of ensuring aid is available in the areas where it is most needed to help improve competitiveness and reduce regional inequalities.
Under EU rules regional state aid can only be paid by governments to enterprises located within the areas designated. Three disadvantaged regions automatically qualify: Cornwall and the Scilly Isles, West Wales and the Valleys, and the Scottish Highlands and Islands. It was decided before the initial consultation that the whole of Northern Ireland would continue as an assisted area.
The EU rules agreed by all member states mean some areas are not eligible to be included by the Government as assisted areas because overall their economies are too strong. Six regions were excluded in this way: Halton and Ellesmere Port; South Manchester; North Warwickshire; Lowestoft; Brighton and Hove; and, Edinburgh and West Lothian.
For more detail, go to http://www.dti.gov.uk/consultations/page31762.html