North West leaders can stretch potential of European funding initiatives

A review of European Funding across the North West of England suggests that eight different types of financial instruments could be implemented to bring added-value to the current grant funding based approach.

The research provides case studies of how the eight financial instruments, which include urban development funds, business angel finance, social impact bonds and local asset backed vehicles, have already been used across Europe.

It demonstrates how the instruments can help the public sector to leverage larger amounts of investment and to enjoy more local flexibility in how European investment is spent and repaid.

The review has been commissioned by the North West Regional Leaders Board on behalf of the five regions that make up the North West of England; Cheshire, Cumbria, Greater Manchester, Merseyside, and Lancashire.

The findings are coordinated and published by New Economy, the agency which delivers policy, strategy and research for Greater Manchester’s economic growth and prosperity.

In addition to specific financial recommendations, it suggests that public institutions across all five North West sub-regions should continue working with the private sector, as well as with their co-regional counterparts to bring forward high quality investment opportunities and build capacity for wider socio-economic benefits.

Baron Frankal, director of economic strategy for New Economy, said: “The financial instruments identified in this research are cost-effective approaches to maximising the value of, and sustaining the level of EU funding within the region.

“Whilst this may not be a one-size fits all approach, the general consensus is that there is scope to use innovative financial products to the wider benefit of the North West region.

“The research phase is of course just the beginning. We’re now taking this forward into shaping a set of policies which will help to inform how sub-regions and localities within the North West approach the 2014-2020 structural funding programming period.”