assisted area

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Assisted Area

In the United Kingdom, an area designated as needing government assistance to promote economic development.

assisted area

a region of economic decline designated under European Union and UK REGIONAL POLICY as in need of industrial regeneration. Financial assistance in the form of REGIONAL SELECTIVE ASSISTANCE is available to manufacturing and service businesses prepared to undertake new investment in designated areas.

assisted area

an area of a country designated as qualifying for financial and other assistance under a country's REGIONAL POLICY in order to promote industrial regeneration. Assisted areas typically suffer from severe unemployment problems resulting from the decline of local firms and industries and are characterized by INCOME PER HEAD (GDP per capita) levels that are substantially below the national average.

In the UK, the main assisted areas are ‘Tier 1’ areas (formerly DEVELOPMENT AREAS) and ‘Tier 2’ areas (formerly INTERMEDIATE AREAS). These arrangements came into force in 2000 as part of a European Union (EU) programme aimed at establishing a comparable regional aid system across all the then 15 EU member states. Under EU policy, the main criteria for designating an assisted area is a GDP per capita that is below 75% of the EU average.

In the case of the UK, the areas proposed by the government, based on electoral voting ‘wards’, are still under review by the European Commission. Proposed Tier 1 areas are Cornwall and the Scilly Isles, Merseyside, South Yorkshire, West Wales and the Valleys, together with the whole of Northern Ireland. Proposed Tier 2 areas, totalling some 1550 smaller localities, are 79 from the east of England region; 133 from the East Midland region; 44 from the London region; 228 from the Northeast region; 144 from the Northwest region; 440 from Scotland; 129 from the Southeast region; 20 from the Southwest region; 51 from Wales; 197 from the West Midlands region and 91 from the Yorkshire and Humber region. Regarding Tier 2 submissions, the European Commission's preferred policy is to support ‘clusters’ of adjacent localities, providing sufficient ‘critical mass’ for industrial development rather than isolated localities.

In addition, a ‘Tier 3’ of assisted areas has been designated that covers areas of ‘special need’ (for example, coalfields and rural development areas).

The application of the new Tier structures is subject to an overall population ceiling requirement; specifically, for any country the number of persons residing in the assisted areas should not exceed more than 28.7% of the total population of the country See REGIONAL DEVELOPMENT AGENCY.

References in periodicals archive ?
At the beginning of July the Department of Trade and Industry published a review of the UK's Assisted Areas - a review that could have significant implications for South East Wales, and Cardiff in particular.
Some areas have been subject to boundary changes since the creation of the 1999-2006 assisted areas map.
Businesses in assisted areas will continue to attract grant at a higher level as part of the overall package that includes:
Firms employing less then 250 people with a turnover of less than pounds 27 million located in assisted areas are invited to come forward by staff at the European Programmes Integration Centre.
Ministers yesterday admitted any review of assisted area status would create 'winners and losers' but insisted the elimination of 95 wards from the North-East's assisted areas list was the end of the story.
RSA is the main source of financial assistance to industry in Wales and supports investment projects that create new jobs or safeguard existing ones in the assisted areas.
The Regional Selective Assistance (RSA) scheme,for example,gives discretionary grants on projects with fixed capital expenditure over pounds 500,000 and which create or safeguard jobs in the Assisted Areas.
Regional Selective Assistance scheme is a discretionary grant providing financial support towards the fixed costs for investment projects that will help produce and safeguard jobs in assisted areas.
Cannock Chase Labour MP Dr Tony Wright wants Trade and Industry Secretary Stephen Byers to guarantee that the former mining towns and villages will be included in a new package of assisted areas now being drawn up.
The current list of assisted areas is due to run out on January 1, 2007 but in drawing up a new map ( to go before the EU next month after a one-month consultation ( the Department for Trade and Industry has been ordered by Euro chiefs to take account of gradual EU expansion and the growing UK economy by cutting the coverage of its scheme across the entire country.
Tackle Wales' low level of research and development spending,lobby the Treasury for regional enhancements to tax credits for assisted areas.
It has been channelled from a pool available for creating or safeguarding jobs in assisted areas and can be used on site preparation, buildings, plant, machinery and essential vehicles.