1. 1 Policy Regional Policy

2. 2  The UK, as a whole, is made up of a number of regions throughout England, Scotland, Wales and Northern Ireland.  Some of these regions (within Scotland, England and Wales) are more prosperous than others, so in order to create more of a balance, the UK government allocates financial assistance to the regions that are less economically prosperous. This gives their economies a much needed boost.  www.bized.ac.uk/learn/economics/firms/locatio nnotes.htm www.bized.ac.uk/learn/economics/firms/locatio nnotes.htm www.bized.ac.uk/learn/economics/firms/locatio nnotes.htm

3. 3 areas Assisted areas  The regions of the UK which are in need of this financial assistance are known as Assisted Areas.  These Assisted Areas contain around 30% of the UK population and are typically areas of high unemployment.

4. 4 Assisted areas are divided into further categories:  Tier 1 – These are areas with the worst local economies and include South Yorkshire and a large percentage of Wales and Merseyside, among others.  Tier 2 – These are areas whose economies are in decline and include large parts of Scotland and the North East of England.

5. 5 Types of regional assistance

6. 6 Regional Enterprise Grants (REGs)  Regional Enterprise Grants are grants which are given to assist small and medium companies in England that employ no more than 250 employees.  These companies must be located within Enterprise Grant Areas, which tend to be areas of very high unemployment.  Similar financial assistance is available for small and medium companies in Wales and Scotland.

7. 7 Regional Selective Assistance (RSA)  Regional Selective Assistance is made up of grants which are given to companies for investment in projects of over £500,000.  These grants are designed to encourage investment and job creation in areas of the UK designated for regional aid under EU law.  Grants given are usually at least £75,000 and usually equate to around £4,000 per job created.

8. 8 European Union Structural Funds  EU Structural Funding focuses on developing regions in all 25 member states (including UK).  These funds are divided into 4 areas:  European Regional Development Fund (ERDF)  European Social Fund (ESF)  European Agricultural Guidance and Guarantee Fund (EAGGF)  Financial Investment for Fisheries Guidance (FIFG)