'N+2' spending targets

What is 'N+2'?

'N+2' is a European Commission requirement stating that the annual budget allocations for the European Regional Development Fund (ERDF) operational programme must be spent within two years of the year for which they were allocated.

Basically, the ERDF budget allocated in the financial tables for 2007 has to be spent and a claim submitted by the end of 2009, funds committed for 2008 have to be spent by the end of 2010 and so on.

The first N+2 target (£25m) is therefore December 2009, the last December 2015.

Any part of the budget for the year in question that remains unspent is automatically ‘de-committed’ by the European Commission.

N+2 spending targets for ERDF are non negotiable and they impact upon not only the managing authority organisation, but also project developers, proposers and beneficiaries.

It’s vital therefore that all project developers and beneficiaries are aware of the N+2 target and understand the role they play in ensuring that they meet their responsibilities for expenditure and the submission of claims on time.

For more detailed information, click here to read our guidance note on the first N+2 spending target.