Transcript Document

North East European Structural
and Investment Funds
Update workshop – November 2014
North East Local Enterprise Partnership
The Strategy
Context: Strategic Economic Plan
An Agenda for Growth - “more and
better jobs” – with clear vision, objectives
and actions
Substantial investment proposals
Basis for a Growth Deal for the area,
including the Local Growth Fund
European Structural & Investment
Funds Strategy delivers on local aims
Economic context
Employment rising (NE)- Jul-Sep 2014, 27,000 more employed than Jul-Sep
2013
Labour productivity (GVA per hour worked) growing at fastest rate in the
country
GVA per head growing among highest rates in the country
79% of jobs in the area provided by the private sector (72% in 2009)
Still shortage of private sector jobs to provide a balanced and sustainable
economy.
The challenge is not just the number of jobs but the quality of these jobs.
Educational achievement has been on a steady rise since 2000 - but need to
increase volume of higher level skills
Vision and objectives
By 2024 our economy will provide over one
million jobs
Halve the gap between the North East and the national
average (excluding London) on:
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Gross value added (GVA) per full time equivalent (FTE)
Private sector employment density
Activity rate
Fully close the gap on employment rate,
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Scale and quality of employment matching an increasingly better
qualified and higher skilled workforce.
Strategic Economic Plan Theme
1.
Innovation
2.
Business support and access to finance
3.
Skills
4.
Employability and inclusion
5.
Economic assets and infrastructure
6.
Transport and digital connectivity
European Structural and Investment Funds
Local enterprise partnerships were asked to develop ESIF strategy responding
to local needs
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European Regional Development Fund
European Social Fund
European Agricultural Fund for Rural Development
Youth Employment Initiative
Split of ESIF in North East by fund, £m
EAFRD, 10.5
YEI, 7.7
ESF, 211
ERDF, 249
Split of ESIF in North East by fund & area £m
ERDF £m
TO5 Climate change
adaptation, 11
TO9 Social
Inclusion, 4
TO1 Innovation, 53
TO2 ICT, 4
TO4 Low carbon, 65
TO3 SMEs, 112
ESF £m
Innovation (£53.2m)
Creating competitive advantage; open innovation,
smart specialisation
Building collaborative research between enterprises, research institutions and
public institutions
Bringing new products and business processes to the market, including those
linked to ‘key enabling’, the ‘eight great’ and health science technologies
Development of innovation space to support commercialisation of research
and development
SME competitiveness (£112.1m)
A2F for SMEs to support growth and innovation
Provide coordinated business support
Support the development of strategic sites
Broadband infrastructure (Durham, £4m)
Address broadband funding gap and ensure opportunities for growth
through digital connectivity are exploited
Low carbon and green infrastructure (~£75m)
Sustainable Growth Study
Built Environment and Business Energy Efficiency
Low Carbon Supply Chains
Innovative Technologies and Renewable Energy Generation
Green Infrastructure Improvements
Sustainable Urban Development
ESF
- Inclusive growth study
- ESF and Opt-ins- match provided, process managed
Employability (£53.3m)
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Provide additional and more intensive support to help people develop the skills and
aspirations needed to move towards work, enter work and to progress into work
Help older workers, workless people and those facing redundancy to upgrade their skills,
learn new skills or re-train to enter, re-enter or stay engaged with the labour market and
adapt to new market conditions
Young people- Northumberland and Tyne and Wear/Durham
Social inclusion (£44.5m)
- Tackle multiple barriers
- Support for those with protected characteristics
- CLLD
Skills (£113.6m)
Support for intermediate, technical and high level skills and studentships
especially linked to areas of economic advantage
Support collaborative projects, placements, internships
Support for activities to start and grow a business
Better links between businesses and educators
EAFRD (£10.5m*)
Rural Business Growth Fund, Strategic Economic Infrastructure
Tourism
LEADER
Durham Coast and Lowlands; North Pennine Dales; Northumberland Coast
and Lowlands; Northumberland Uplands
Financial instruments
JEREMIE: Current JEREMIE now to 2015 end. North East LEP and TVU
working together to deliver £160m fund from 2016
Online survey here:
http://survey.panelbase.net/start/chk.asp?jn=P6336&es=1&src=nea2f
NEIF: Recognising benefits of loan-based funds to meet infrastructure
needs. To consider best deployment of ERDF, ex-ante evaluation to support
market assessment will help determine scope and demand
Application process (ERDF, ESF)
Call published after specification designed locally, applicants
prepare and submit outline application
Calls will address a specific local need or opportunity and fit one
priority or thematic objective
Some will stipulate single award/defined number of awards and
budget
Outline application assessed strategically, and also by MA on
gateway criteria and core selection
Need to ensure eligible match, meeting outputs, value for money
Local committee recommends which projects proceed to full
application and makes final endorsement
Timescales
2014
December: First meeting of LSC
2015
Early 2015: LEP to run thematic workshops
Early- mid 2015:
National Operational Programmes signed off
Local Implementation Plan finalised incl. local specs
Calls for projects
Questions?
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European Structural and Investment
Funds Growth Programme
2014 to 2020
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Please note that these slides are based on the position of the
proposed operational programme at time of publication. This is likely
to change in response to further discussions with the European
Commission.
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Some key differences from last time
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Stronger links with EU strategy
Greater focus on results
Tougher performance framework
Ex-Ante Conditionalities to ensure more effective spend
Strengthened partnership principle and LEP area
allocations
• National Operational Programme ERDF
Strategic Context
Europe 2020
Common Strategic
Framework
Partnership Agreement
Programmes
Projects
National reform programme/
relevant CSR
Operational Programmes
Thematic Objectives
Europe 2020
Investment priorities
Programme strategy
Specific objective
Development needs
Expected results
Outputs
ERDF and ESF OPs
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UK Allocation ERDF:ESF => EUR 11bn
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Growth Programme in England made up from individual ESIF Operational
Programmes:
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ERDF England => EUR 3.6bn
ESF England => EUR 3.3bn
EAFRD (RDP) => cEUR 215m (£177m)
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ERDF:ESF in England c63% of UK allocation
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England level ESF/ERDF Operational Programmes covering all 3 Categories of
Region
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OPs implemented via ESIFs and notional allocations at LEP area partnership
level
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European Regional Development Fund 2014 to 2020
Operational Programme Structure
ERDF Priority Axes
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Priority axis 1: Research & innovation (Investment Priority 1b)
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Priority axis 2: Enhancing access to, and use and quality of, ICT (IP
2a / 2b)
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Priority axis 3: Enhancing the competitiveness of SMEs (IP 3a/3c/3d)
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Priority axis 4: Supporting the shift towards low carbon economy in all
sectors (IPs 4 a-f)
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Priority axis 5:Promoting climate change adaptation, risk prevention
and management (IP 5b)
European Regional Development Fund 2014 to 2020
Operational Programme Structure
• Section 2: ERDF Priority Axes
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Priority axis 6:Preserving and protecting the environment and
promoting resource efficiency (Investment Priority 6d/6f)
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Priority axis 7: Sustainable transport in Cornwall and IoS (IP 7a / 7c)
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Priority axis 8: Sustainable transport in transition regions (7b/7c)
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Priority axis 9: Promoting social inclusion and combating poverty and
any discrimination (IP 9d)
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Priority axis 10: Sustainable urban development (14 IPs /18 Specific
Objectives/Results)
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European Social Fund
Operational Programme 2014 to 2020
3. Priority Axes
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European Social Fund 2014 to 2020
Operational Programme Structure
• Priority Axis 1 - Employment
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Access to employment for jobseekers and inactive people
Sustainable integration of young people
Sustainable integration of young people (Youth Employment
Initiative)
Active inclusion for the most disadvantaged groups
Community Led Local Development
Two Thematic Objectives (TO8 / 9)
3 Categories of Region
European Social Fund 2014 to 2020
Operational Programme Structure
• Priority Axis 2: Skills
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Access to lifelong learning: improving the skills of individuals
Labour market relevance: making skills provision more responsive
to the needs of the local economy
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One Thematic Objective (TO 10), 3 categories of region
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European Social Fund 2014 to 2020
Operational Programme Structure
Priority Axis 3: Technical Assistance
• MA staff costs
• Costs of national MA and opt-in activity (e.g. IT, evaluation, comms)
• National partner activity
• Local partner activity
3 categories of region
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European Social Fund 2014 to 2020
• Delivered via CFOs
• Opt-in-Organisations
 Skills Funding Agency
 DWP
 Big Lottery Fund
– NOMs (top slice)
– Youth Employment Initiative
– 70% Opt-in / 30% open bidding
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Next Steps
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Partnership Agreement submitted April / agreed October – significant issues
of detail on implementation and governance to be addressed in individual
Operational Programmes
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ESF / ERDF OPs submitted summer EU Commission comments received
and negotiations underway
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From ESF point of view – EU challenges:
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More about reducing gender employment rate gap and gender pay gap
Clarity on supporting childcare when it’s a barrier to participation
Scepticism on HL skills require it to be focused and not about participation
Prioritise lower level skills
Relationship between specific objectives, results and outputs (EU after
more targets / disaggregation / customer characteristics)
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 Governance model
Next Steps
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From ERDF point of view – challenges include:
 Governance and Business Process
 Role of partners and Managing Authorities (GPB / national committees /
local sub-committees)
 Resources and ex-ante conditionalities
 Coherence of investment strategies at Priority Axis level
 Concentration of resources
 Integrated territorial instruments (CLLD/SUD/ITI)
 Broadband (justification and criteria for capital infrastructure investment)
 Business Incubators (ECA)
 Smart Specialisation Strategies (feasible at local level?)
 More information on coordination of business support services
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Next Steps
• Government formal response to EU Commission Comments
• Formal negotiations with relevant Directorates General
• Revised OP and informal agreement first quarter 2015
• Informal launch of ESIF England Growth Programme from
March / April
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Questions?
Rural Funding - EAFRD
Workshops
1. Identifying project pipelines
2. Understanding the impact
3. Feedback – Challenges and
next steps