EU Intervention Makes a Difference to Regional Economies

Added: (Fri Sep 03 2004)

Pressbox (Press Release) -

PRESS RELEASE – OBJECTIVE 1 WORKING
SOURCE - THE BETA MODEL LTD
DATELINE – 5 AUGUST 2004, LIVERPOOL

GROWTH IN ENTERPRISE NUMBERS AND EMPLOYMENT SUGGESTS THAT OBJECTIVE 1 PROGRAMMES ARE WORKING

There are four objective 1 programmes running in the UK, in Merseyside, West Wales and the Valleys, Cornwall and the Scilly Isles and South Yorkshire. In all areas the number of employees has grown faster than the increase for the UK as a whole since 2002 and in all but one of the areas the number of enterprises has grown faster than the increase for the UK as a whole since 2000. Jeremy Nicholls, managing director of the Beta Model, who conducted the research using the companies own Economic Analysis tool, said of the result "this is very encouraging given the difficulties faced by these areas – they need to be growing faster than the UK average if the gap is going to close and its looks as though they are’.

The research compares new business numbers across the Objective 1 regions since 2000 and is based on data provided by Experian National Business Database.

Since 2002 South Yorkshire’s employment as a share of UK employment has increased by 7%, Merseyside by 2.6%, South Wales by 2.4% and Cornwall by 1.5%.

Employment growth comes from increases in the number of enterprises and increases in the size of existing enterprises. In terms of numbers of enterprises operating in the areas, Cornwall has increased by 7.6%, South Yorkshire by 2%, South Wales by 0.5%. Numbers of enterprises on Merseyside dropped by 1.5% relative to the increase across the UK.

In terms of changes in the size of existing businesses only Cornwall has had a higher rate of growing business to shrinking businesses than the UK between 1999 and 2004 although the other areas are close behind. However in 2004 all the regions had higher rates than the UK except South Yorkshire.

Garry Haywood, research director at the BETA Model, said ‘it’s good to be able to compare these areas and see that Objective 1 is making difference’.

Notes to Editors:
The BETA Model is tool developed to measure the impact of Economic development at regional and local level. The research was conducted in July 2004. Data is taken from the BETA Model, using data provided by Experian.

For further information please contact Garry Haywood, 0870 744 3931 / 07850 797 192