EUROPEAN STRUCTURAL & INVESTMENT FUNDS

2014-2020

COAST TO CAPITAL WORKSHOP

25 July 2013

Sue Baxter & Tim CourtneyDepartment of Business, Innovation & Skills

THE STORY SO FAR ….. April 2012 Government consultation

– which way forward? April – Sept ‘12 Workshops & sectoral events Autumn 2012 New delivery model

developed– a single EU SIF “Growth

Programme” for England

Developed in response to stakeholder demands for Place based programmes Improved responsiveness to local differences Simplified management arrangements & more

integrated programming

Nov–Dec ‘12 Road testing new delivery model – 13 ‘roadshows’

Feb 2013 EU Budget Settlement Mar 2013 UK SCF settlements:

England €6.2bn; Scotland €800m;

N. Ireland €460m; Wales €2.15m;

Apr 2013 Outline guidance to LEPs from Government May 2013 LEP initial feedback to HMG on priorities

and requirements Jun 2013 Financial allocations to LEPs

CURRENT ENGLAND STRUCTURAL FUNDS PROGRAMMES 2007-13: PROLIFERATION, DUPLICATION, FRAGMENTATION

PROPOSED ENGLAND EU PROGRAMME 2014-2020: STREAMLINED & INTEGRATED

PROJECT PROPOSALS

Community Led Local Development,

Maritime and

FisheriesProgramme

(EMFF)

RuralDevelopmentProgramme

(EAFRD)

SINGLE EU GROWTH PROGRAMME: > €6.2bn

(ERDF, ESF & part of EAFRD)

LEPs

MA Local Teams

NEW vs OLD : RINGING THE CHANGES Consistent approach to using EU ESI funds in a combined

and complementary way under a single national programme(vs current disconnect between complementary EU funds channelled through 11 separate programmes)

Allocations geared to functional economic areas but with freedom to be shared and ‘pooled’ if desired(vs current regionalised / less accessible programming for ERDF which confines investments to regional administrative boundaries)

>95% allocated for determination at local level, with minimal ‘top slicing’ to finance Government initiatives(vs <50% Government ‘top slice’ in current programmes)

More equalised proportions ERDF and ESF (vs acute ‘skewing’ of ERDF to the north in current programmes)

Coherent, up front, national match funding ‘opt-in offers’ to alleviate financial pressures for project sponsors & encourage strategic investments(vs current ad hoc / non-existent national match funding arrangements)

strategies

Local Growth Fund(LGF)

ESI funds

Summer: Confirmation of design & scope of the SGLF

Publication of guidance

December : LEPs produce draft strategic economic plans

March: Final Strategic Economic Plans to

Government

July: Local Growth Deal negotiations completed

LGF goes live mid 2015

Aligned spending :LGF & ESI funds

Summer: Guidance & indicative allocations ESF/ERDF to LEPs.

EAFRD allocation later.

7 October: LEPs submit ESI funds

Oct – Dec: LEPs discuss & agree ESI strategies with HMG

Early 2014: Minimal time for local preparation;

Mid 2014: ESI funds ‘go live’ Delivery starts

TIMELINES

Jan: HMG negotiates England plans with EU. LEPs finalise ESI

strategies

ESI 2014-2020 CORE FUNDING THEMES

• Innovation and R&D (esp commercialisation)

• ICT: Improving access; quality and usage • SMEs: Improving competitiveness

(incl. in the agricultural & aquaculture sectors)

• Shift to low carbon economy • Climate change adaptation and risk management (low

priority)

• Environmental protection & resource efficiency (low priority)

• Sustainable transport and unblocking key networks (low priority)

• Employment and labour mobility• Social inclusion and fighting poverty • Education, skills and lifelong learning• Improving institutional capacity for efficient public

administration (not for UK)

ESI RINGFENCING REQUIREMENTSESI CORE THEMES COAST TO CAPITAL LEP

InnovationAt least 80% ERDF must be spent on these 4

themes, of which at least 20% (tbc) on low carbon

SME CompetitivenessLow Carbon (high

priority)ICTClimate Change Adaptation

Lower priority

Environmental Protection Lower priority

Sustainable Transport Lower priority

Employment

At least 80% ESF must be spent on up to 4 sub-priorities

1) Unemployed people into employment2) Young unemployed / not in training into

employment 3) Upskilling: Access to lifelong learning;

upskilling employed workers; increasing the labour market relevance of education and training systems, incl apprenticeships

4) Social Inclusion: with a view to improving employability

Skills

Social Inclusion(at least 20% value of ESF)

Institutional Capacity

DEVELOPING STRONG

PROJECTS

Alignment with programme theme

Innovation

SME Competitiveness

Low Carbon

ICTClimate Change

AdaptationEnvironmental Protection

Sustainable Transport

Employment

Skills

Social Inclusion

Institutional Capacity

Your Project Proposal

Indicative Checklist

Policy fit

EU vision: EU 2020UK vision: national policy & programmesC2C LEP vision

Business case

Evidence of need

Rationale for intervention & use of public funds

Outputs, Impact & Outcomes

VFM

Deliverability

Match funding

Risk management assurance

Timeframe

Compliance

Eligibility with funding rules

Audit trail

Endorsement from key partners

‘OPT IN’ OFFERS OF HMG MATCH FUNDING

Organisation / programme ESI Theme

Growth Accelerator

Enhancing the competitiveness of SMEs(ERDF)

The Manufacturing Advisory Service

UK Trade & Investment

European Investment Bank (for a social housing financial instrument)

Supporting the shift towards a low carbon economy (ERDF)

BIG Lottery Fund Promoting social inclusion & combating poverty (ESF)

Skills Funding Agency Education, skills & lifelong learning (ESF)

ESI ACCOUNTABILITIES (@ July 2013!)

BIS: UK co-ordination & Structural Funds policy chair of management board; performance management oversight; reporting to European Commission; negotiation of legal regulations.

DCLG: English ERDF Managing Authority - accountable for management of ERDF to European Commission.

DWP: English ESF Managing Authority - accountable for management of ESF to European Commission.

DEFRA: English EAFRD (RDPE) Managing Authority - accountable for management of EAFRD to European Commission.

Watch out for new Local Growth Teams……

LEPs are responsible for the strategic direction of their ESI allocations – NOT for operational management or shouldering liabilities

Individual ESI grant or loan beneficiaries are accountable for compliant delivery of their own project / contract. Non compliance with EU rules can result in grant / loan ‘clawback’ by Managing Authorities or the EU after the money has been spent!

CONTENTS OF YOUR ESI FUNDS STRATEGY

The local area (evidence base, market failures, SWOT, growth vision

ESI Funds Priorities (strategic-level activities) Distribution of ESI Funds across EU thematic

objectives Match-funding (and the “opt-in” model) Outputs and results Delivery arrangements Local governance arrangements Cross-cutting themes

EVALUATION OF ESI FUNDS STRATEGIES

Strategies to be evaluated at local and national level against the following criteria:

Rationale for intervention and selection of activities (evidence base, value for money, outputs/results, alignment with national priorities where appropriate)

Partnership, delivery and risk (local governance, capacity, delivery routes, match-funding, spending profile)

Eligibility and compliance with EU rules and priorities

Distribution of ESI Funds across thematic objectives (and ERDF/ESF split)

GET A PIECE OF THE ACTION

ESI funds are complex and bureaucratic but will enable C2C delivery partners to

Develop transformative interventions in key places

‘Stretch’ the reach of existing actions Leverage wider investments for key

programmes / projects Breathe new life into SMEs,

community groups & innovative ideas to drive economic growth