Recent European enlargement means that the money the UK gets from the EU for regional development will decrease from£11.5bn in 2000-2006 to£6.5bn from 2007-2013. The EU has already set aside£3bn for South Yorkshire, Merseyside, Cornwall and the Isles of Scilly, West Wales and the Valleys, and Scotland's Highlands and Islands.
Dermot Finch, Centre for Cities director said: 'Our share of European Structural Funds is about to fall by more than 40%. We will need to do more with less. We should spend this last slice of EU money on high potential areas outside the South East. Concentrating EU funds in big northern cities, such as Newcastle and Leeds, will help to drive economic growth not just in those cities but across those regions.'
Last Orders! What the new EU budget means for Britain's cities by Adam Marshall and John Adams is available from www.ippr.org/centreforcities