EU COMMON STRATEGIC FRAMEWORK FUNDS

2014-2020

CEDOS 15 February 2013

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- CSF FUNDS ‘ALLOCATED’ TO THE UK - STRUCTURAL FUNDS, RURAL DEVELOPMENT &

FISHERIES FUNDS

EUROPEAN REGIONAL DEVELOPMENT FUND (£2.8 bn 2007-2013 England)

Innovation and knowledge based economy (incl commercialisation of research and technology transfer)

Stimulating enterprise and supporting SMEs Sustainable Development & low carbon technologies Building sustainable communities – incl regeneration10 programmes in England managed by DCLG (previously RDAs)

EUROPEAN SOCIAL FUND (£2.5 bn 2007-2013 for England) Helping unemployed and inactive people into work (especially

disadvantaged groups such as ex-offenders, young people NEET and unskilled people)

Improving workforce skills and redundancy support 1 English programme managed by DWP

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EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (£3.7bn 2007-2013 for England)

Improving the environment and countryside; Improving the competitiveness of the agricultural and forestry sector ; Quality of life in rural areas and diversification of the rural economy. One English programme / DEFRA.

EUROPEAN FISHERIES FUND (£40m for England in 2007-2013)

Smart, green fisheries (to address discards); aquaculture businesses ; coastal communities dependent on fishing. 1 UK programme / DEFRA.

- CSF FUNDS ‘ALLOCATED’ TO THE UK (continued) -

STRUCTURAL FUNDS, RURAL DEVELOPMENT & FISHERIES FUNDS

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CURRENT DELIVERY ARRANGEMENTS

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WHAT DELIVERY PARTNERS TOLD US

No regional boundaries / new chances to collaborate

Harmonised and simplified administrative procedures

More consistent and co-ordinated approach & advice from managing authorities

Clarified arrangements for city deals / ITIsBroader range of partners locked in (esp SMEs)Pooled knowledge & lessons learnedBetter co-ordinated approach to HMG match-

fundingTransparent allocations

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PROPOSED DELIVERY ARRANGEMENTS 2014-2020

Projects

Community Led Local Development, including Leader

and FLAGs

Maritime and

FisheriesProgramme

(EMFF)

RuralDevelopmentProgramme

(EAFRD)

Growth Programme(ERDF, ESF & EAFRD)

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GROWTH PROGRAMME An “EU Growth Programme” to be financed by ERDF and

ESF with a contribution from EAFRD A single “EU Growth Programme Board” incorporating a

joint Programme Managing Committee for ESF and ERDF LEPs to be the fundamental building blocks receiving a 7

year notional allocation subject to periodic performance reviews

LEPs to identify their preferred EU investment prospectus as part of their wider growth strategy, for agreement by the Growth Board. LEPs will not take on project delivery accountabilities, however but retain a strategic oversight role in cooperation with local partners.

Government departmental teams to work as “CSF Area Growth Teams” to support LEPs in their strategic role. All final funding decisions to be dependant upon due diligence by fund Managing Authorities.

National co-financing initiatives to take account of local needs

‘ITIs’ may be an option in a limited number of places - where this arrangement will deliver better value, higher impact results.

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GROWTH PROGRAMME ORGANISING PRINCIPLES

National and local

priorities aligned

Common standards and

transparent accountabilities

BETTER FOCUS

HIGHER IMPACT

INCREASED GROWTH

Local decision making and

drive

A single set of targets and milestones

across England

EU regulatory requirements met and financial risk

minimised

Lower cost & simplifies

administration

Complex EU funds packaged as a coherent and

consistent programme

Variable geographies

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GROWTH PROGRAMME THEMES

Top priorities

Research, technological development and innovation – esp. commercialisation

Raising SME competitiveness – esp re exports

Shift to low-carbon economy – esp energy efficiency & renewable technologies

Employment & skills (inc. social inclusion)

Other objectives

Climate change adaptation, risk prevention & management

Environmental protection & resource efficiency Sustainable transport and removing network

bottlenecks Access to & use of ICT

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WHAT’S NEW: ‘LESS DEVELOPED’ REGIONS 2014-2020

GDP/head below 75% EU27 average

80% EU co-financing available for wider range of activities

Safety net” of 2/3 of previous allocation for regions moving ‘up’ and out of this category

At least 25% spend must be from European Social Fund

West Wales and the Valleys

Cornwall and Isles of Scilly

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WHAT’S NEW?: ‘TRANSITION’ REGIONS 2014-2020

GDP/head between 75% and 90% of EU27 average

60% EU co-financing OVERALL

Safety net” of 2/3 of previous allocation for regions moving ‘upwards’ into this category

At least 40% spend must be from European Social Fund, of which 70% likely to focus on only 4 employment-related priorities, with up to 20% for tackling social exclusion at national level (although the 20% can include a proportion of ERDF).

80% ERDF likely to focus on only 4 priorities

- Cumbria (89.5% of EU average)– Devon (88.1%)– Northern Ireland (86.4%)– East Yorkshire & N. Lincolnshire

(85.8%)– Lancashire (84.9%)– South Yorkshire (84.5%)– Highlands & Islands (84.1%)– Shropshire & Staffs (83.9%)– Merseyside (80.2%)– Lincolnshire (79.8%)– Tees Valley & Durham (78.5%)

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‘MORE DEVELOPED’ REGIONS 2014-2020 GDP/head more than 90% EU27 average

50% EU co-financing

At least 52% spend must be from European Social Fund, of which 80% of each programme must focus on only 4 priorities

At least 20% of value of ESF likely to focus on social exclusion at national level (but can include ERDF)

80% ERDF to focus on only 4 priorities:InnovationSME competitivenessLow carbon and energy efficiency (at least 20%)A N other?

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WHERE ARE WE NOW?

EU Commission tests & launches proposals

Ministers agree domestic delivery

Go liveMid 2014

Informal consultation

Develop UK EU budget negotiating positions

Develop UK CSF negotiating positions

UK negotiates EU budget

HMG develops EU Growth Programme;LEPs develop EU investment portfolio

Identify, develop and test policy options; Negotiate UK Partnership Agreement

UK negotiates with other EU countries, European Parliament and Commission

EU - Eurozone crisis; downward pressure on EU budget; upward pressure on CSF funds to deliver results UK – pressure to drive high impact growth; localism; city deals; CSR; ministerial change & elections

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NEXT STEPS : EUROPE

EU 7 year budget deal agreed by Member States 7 FebFinancial allocations to countries; to special status areas

(eg transition) & confirmation of funding priorities Swift approval by EP? Then CSF regulations negotiations with European

Parliament (4 months + ?), then back to governments (4 months + ?)

Then UK business plan negotiated with Commission, followed by programme proposals (4 months + ?)

Earliest likely start : Q2 2014

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NEXT STEPS - ENGLAND Spring Budget: Outline LEP guidance published on EU

investment strategies (alongside outline response to Lord Heseltine review)

From Spring 2013: LEPs to identify and prioritise EU pipeline investments, with advice from local EU teams

Summer: more detailed LEP guidance once EU negotiations with EP further developed & final response to Lord Heseltine review complete (+ EU allocations?)

Autumn: LEPs submit first cut strategic plans incl emerging EU pipeline to HMG for agreement / steer

Winter: LEP / HMG agree targets, milestones. Plans consolidated

Spring 2014: UK business plan (incorporating LEPs’ proposals) agreed with European Commission

Summer 2014: Start spending?!

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GUIDANCE TO LEPs IN AN UNCERTAIN LANDSCAPE

How do LEP strategic plans map onto EU funding priorities?

What are the top priority transformational investments needed to drive jobs and growth which can be EU funded?

What local ‘reach’ is needed : who to involve and how?

Who else beyond the LEP do you need to work with to strengthen your strategic advantages?

What wider funding packages need to be put in place?