assisted area

Assisted Area

In the United Kingdom, an area designated as needing government assistance to promote economic development.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
"A substantial reduction of Assisted Area coverage now would mean that investment in Wales would come to a grinding halt...
Lord Wakeham had also written to the PM, agreeing with Mr Hunt that a cut in Assisted Area "coverage in Wales from 87% to 49% of its working population" could "not be defended".
The scheme is located within a Welsh Government Assisted area, giving discretionary grants to eligible companies which move to the area.
e European Commission has approved proposals for amendments to the UK Assisted Area Map which will come into force on July 1.
WIRRAL Briefing AID BOOST FOR ELLESMERE PORT ELLESMERE Port has been granted Assisted Area status which will provide a big opportunity for local businesses and enterprises who will be eligible for additional levels of financial support for development through EU Regional Aid.
e Department of Business Innovation and Skills has published a map of the areas in the UK which will enjoy Assisted Area Status from later this year.
Julien Kenny-Levick, director of industrial and logistics at Colliers, said the park was located in what is known as a Tier 2 Grant Assisted Area. This means an occupier may qualify for grants from the Single Investment Fund, administered by the Welsh Assembly.
Any business within the assisted area that employs between five and 250 employees, with turnover not exceeding pounds 27million or annual balance sheet not exceeding pounds 18million, can apply for NEBBC grant.
Loftus and Guisborough have been granted Assisted Area status by the Government.
The Department of Trade and Industry announced which areas will qualify for assisted area funding from the European Union, which is designed to help businesses in deprived areas.
The reduction in car parking spaces will reduce the pressure on the neighbouring roads and, with Brent now designated an Assisted Area with access to EEC funds, the whole scheme is gently falling into place.