THE SOUTH YORKSHIRE FORUM Position Statement on EU Cohesion Policy post 2006 September 2003 Introduction necessary skills for regeneration through initiatives such as the highly successful Regen School. This position paper sets out the views of the South Yorkshire Forum on the future Plans for major physical development are in place in all four of EU Cohesion policy and the role of EU urban centres with a number of flagship projects ready to begin Structural Funds, in particular, in the including the Frenchgate Interchange in Doncaster, a number of enlarged Union post 2006. The Forum was established in 1999 key sites in Sheffield and Rotherham and a programme of to prepare for the current Objective 1 programme period and ‘Remaking Barnsley’ which has attracted international attention. longer term, bringing together the main actors involved in the Finningley Airport will remove a key barrier to economic growth economic transformation of the South Yorkshire sub-region with and provide a significant boost to the economic fortunes of its population of 1.26m. Its membership includes the four local South Yorkshire once it begins operations in 2005. authorities of Barnsley, Doncaster, Sheffield and Rotherham and a wide range of public, private, voluntary and community sector EU Cohesion Policy organizations (80 in total). South Yorkshire supports the continuation of an EU wide Cohesion Policy in an enlarged Union. As strong advocates of EU Geographically, South Yorkshire consists of four main urban Enlargement, South Yorkshire is keen to play its part in centres, the former coalfield towns and villages and small market developing links with regions in the accession countries through towns surrounded by rural hinterlands, ranging from Pennine participating in networks such as the European Industrial uplands to agricultural lowlands. The sub-region has benefited Regions Association (EIRA) and EURACOM. However, the significantly from the European Structural Funds over a period of assistance required to tackle the structural economic weaknesses more than 10 years, but the dramatic economic effects of of the lagging regions in the accession states should not be restructuring the UK coal and steel industries in the 1980’s and found at the expense of those regions which are still lagging 90’s led to the designation of Objective 1 status in 1999 with a behind in the existing EU 15. As one of the so called GDP/capita at 74% of EU average. ’statistically affected’ regions South Yorkshire has declared its solidarity with the other 15 or so Objective 1 regions in Europe Achievements to date where progress to date may be jeopardized if further funding is The Objective 1 Mid Term Evaluation points towards positive denied. Further support is needed for such regions in order to progress over the first three years of the programme with some consolidate the achievements made so far. In South Yorkshire significant achievements. Improvements in educational economic transformation is seen as a 15-20 year process, attainment, reflected in the continuing rise in GCSE results reversing the past 20 years of decline. (grades A-C), are particularly noticible following a sustained programme of investment in schools and colleges through e- Whilst South Yorkshire supports the continued use of GDP per learning and associated measures. Other areas of the capita for defining Objective 1 regions we believe that the 75% programme have also begun to show signs of real growth threshold should be treated flexibly for those regions whose potential with key investments occurring in the advanced metals economic revival remains fragile. In reality, there is little and manufacturing cluster, such as The Welding Institute, and difference between an economy with a GDP of 74% EU average progress with the Advanced Manufacturing Park at Waverley. and one with, say, 76% particularly allowing for a margin of error and other factors such as de-population (South Yorkshire’s Disadvantaged communities are beginning to see the benefits of population has declined by 40,000 effectively adding two Objective 1 on the ground, through Community Action Plans percentage points to it’s GDP). Objective 1 support should delivering a range of community economic development remain available for all regions whose GDP remains below or activities. The social economy is being developed across South close to the 75% EU 15 average, perhaps with a slight taper Yorkshire and communities are being equipped with the applied to the amounts for those which are slightly above the threshold. 1 POSITION STATEMENT ON EU COHESION POLICY POST 2006 South Yorkshire’s Economic Employees as Position Percentage of Working Age: The GDP (2000 and 1998-2000): South Yorkshire’s GDP grew encouraging trend steadily against the EU average (shadowing the UK trend) to over the year to 1998, fell by 1.7 points in 1999 and remained relatively 2001 is that the gap unchanged in 2000 at 74.8%. The three-year average (1998 to between SY and GB 2000) now stands at 75.4%. GDP figures compared to the UK for employees as a percentage of working age has narrowed suggest SY is falling further behind the national average. slightly from 10.2 points to 10 points. There is still a significant gap that can partly be met by reducing further the levels of GDP per Head (PPS) 1994 to 2000 unemployment but must also reduce the numbers of the 110 100.3 102.4 103.3 economically inactive. 98.3 100.5 100.4 100 96.4 90 Employees as a % of Working Age 80 76.5 76.6 70 25.2m 25.5m 74.4 74.3 74.9 70.5 74.8 67.3% 67.5% 70 66 Percentage 60 62 50 484,600 488,800 1994 1995 1996 1997 1998 1999 2000 58 57.1% 57.5% Source: Eurostat (1994 to 1999 revised figure) S Yorks UK EU 100 Percentage 54 50 VAT Companies: VAT stocks in the UK grew by 1.1% between 2000 2001 2000 and 2002 compared to a fall of 1.1% for SY. This means Source: ABI, NOMIS S Yorks GB that the sub-region continues to trail further behind the UK with the VAT gap growing from 13,870 to 13,950 companies (38.2% Average Full-time Hourly Earnings: Total full-time earnings to 38.6% short of UK average). This trend is not unlike other (male and female together) for 2002 were down on 2001 from largely urbanised UK sub-regions as more companies move out 84.3% to 83.5% of the GB average. Male earnings continued of town to locate their businesses. to fall, while female earnings were up again on the previous year. Female as a proportion of male earnings grew substantially again in 2002 but this is only due to the unabated Gap in South Yorkshire’s VAT Base 120 drop in male earnings. 100 13,872 13,735 13,950 38.2% Gap 38.3% Gap 38.6% Gap 80 60 22,435 22,120 22,180 SY Gross Average Full time Hourly Earnings VAT Stock VAT Stock VAT Stock (GB=100) and Female as a % of Male Earnings 40 Percentage 92 90.4 20 89.2 90 88.5 89.5 88.9 0 87.3 2000 2001 2002 88 87.0 85.6 Source: ONS, NOMIS S Yorks VAT Stock VAT Gap behind UK 86 85.6 85.4 84 84.3 83.5 82 83.8 Percentage 81.9 80 78.3 80.4 78 1996 1997 1998 1999 2000 2001 2002 (revised) Source: New Earnings Survey Male Female All F as a % M POSITION STATEMENT ON EU COHESION POLICY POST 2006 2 Unemployment: In June 2000 unemployment for SY was 4.1% Economically Active as Percentage of Working Age: Activity (31,800), compare to the UK of 3.0% (1.1m) of the working age rates have generally stabilised over the year to 2001 as the population. By June 2003 unemployment in SY fell to 3.0% economy reached ‘full-employment’. In recent years the trend (23,500), and for the UK to 2.6% (0.9m). With the UK was downward as more women dropped out of the labour unchanged for the past three June figures, Barnsley has fallen market (from 70.2% in 1998 to 68.7% in 2001). Male rates had below the national average. This is largely due to the low levels marginally increased (80.6% to 80.9%). If SY was equal to the of economically active across South Yorkshire but particularly in national average there would be 28,000 more people (male and Barnsley (see below). If activity rates were the same as the UK female) in the labour market. SY unemployment would be more than double its current level (more than treble for Barnsley). Unemployment Jun 2000 to June 2003 (% of working age) Unemployment Jun 2000 to June 2003 (% of working age) 1999 2000 2001 4.5 Great Britain 78.7 78.6 78.6 74.9 72.2 4.0 Barnsley 77.8 Doncaster 76.6 73.6 75.4 3.5 Sheff Rotherham 73.9 75.3 77.8 3.0 S Yorks Sheffield 75 76.1 75.2 Donc Percentage Roth South Yorkshire 75.6 75.2 75.2 2.5 UK Barns 2.0 Source: Local Area Labour Force Survey 2000 2001 2002 2003 Source: ONS Recent job losses/gains: In Recent years, anecdotal monitoring of job gains and job loss announcements have, in a time of growth, shown three times more job gains than losses. This is reflected in the table below but the past 6 months announcements have show slightly more job losses than job gains. This is a reversal of the past three years.