Empirical analyses of the activities and perceptions of a broad range
of local authorities confirms the view that recent years have witnesse
d two key changes in local economic governance in the UK. First, the p
rivileging of business interests by both European and domestic policy
agendas has offered the private sector a far greater role in local reg
eneration partnerships. While there are doubts about the ability or wi
llingness 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 a
nd shape of the EU's structural funds. Second, local regeneration stra
tegies have become increasingly dependent on EU programmes. This has p
rovided the European Commission with greater influence over regenerati
on strategies - in particular enabling it to encourage regional allian
ces between authorities. However, the overall pattern of local authori
ties' activity suggests that this has not led to the radical realignme
nt of central-local relations envisaged by theories of multi-level gov
ernance. 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 eme
rged in the UK have reflected a particular interpretation by central g
overnment of the principles embodied in the structural fund regulation
s. Very few British local authorities expect, or even aspire, to influ
ence EU policy agendas. Current patterns of local economic governance
in Britain are therefore best seen as the product of an increasingly f
ragmented European polity in which the power of local authorities has
declined, the European Commission's influence has grown but central go
vernment has been able to retain a dominant position.