EU programmes and the evolution of local economic governance in the UK

Empirical analyses of the activities and perceptions of a broad range of local authorities confirms the view that recent years have witnessed two key changes in local economic governance in the UK. First, the privileging of business interests by both European and domestic policy agendas has offered the private sector a far greater role in local regeneration partnerships. While there are doubts about the ability or willingness of businesses to make a meaningful contribution at the local level, the neoliberal agenda which has dominated policy making at the European level has had an important influence over the overall size and shape of the EU's structural funds. Second, local regeneration strategies have become increasingly dependent on EU programmes. This has provided the European Commission with greater influence over regeneration strategies - in particular enabling it to encourage regional alliances between authorities. However, the overall pattern of local authorities' activity suggests that this has not led to the radical realignment of central-local relations envisaged by theories of multi-level governance. The strong 'gate-keeper' role of central government has meant that EU programmes have usually taken on a distinctly British flavour and that both the vertical and horizontal partnerships which have emerged in the UK have reflected a particular interpretation by central government of the principles embodied in the structural fund regulations. Very few British local authorities expect, or even aspire, to influence EU policy agendas. Current patterns of local economic governance in Britain are therefore best seen as the product of an increasingly fragmented European polity in which the power of local authorities has declined, the European Commission's influence has grown but central government has been able to retain a dominant position