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Map of distribution of Structural funds, 2007-13.

Future of European Funding in London Alex Conway European Programmes Director London Development Agency Monday 23 May 2011 London Employment and Skills Convention. Map of distribution of Structural funds, 2007-13. 2003: 15 member states 2007: 27 member states Red = cohesion funds

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Map of distribution of Structural funds, 2007-13.

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  1. Future of European Funding in LondonAlex ConwayEuropean Programmes Director London Development AgencyMonday 23 May 2011London Employment and Skills Convention

  2. Map of distribution of Structural funds, 2007-13. 2003: 15 member states 2007: 27 member states Red = cohesion funds 2007-13 programmes: €308bn UK progs: €9.4bn. 2007-13 London: €660m = over £1,000,000,000 to spend in London

  3. European Structural Funds European Regional Development Fund (ERDF) • Support for SMEs, regeneration European Social Fund (ESF) • Getting people into work and upskilling workforce. Cohesion Fund • Gross National Income (GNI) less than 90% of the Community average.

  4. European Structural funds:European Regional Development Fund (ERDF)European Social Fund (ESF) • Seven year ‘Operational Programme’ negotiated with EC; • In UK: ‘OP’ is regional for ERDF • Governed by regulations that apply to all 27 Member states; • More bureaucratic than UK programmes, heavily audited; • Must be at least 50% match-funded; • usually public sector, but also can be private sector; • Funds clawed back if not spent quickly enough; • never happened in London. • Programmes are monitored by Committees of regional stakeholders; • In London, nominated and chaired by Mayor

  5. 2007-13 London programme management structures • Government has devolved management of 2007-13 ERDF and strategic oversight of ESF to the Mayor of London • On behalf of the Mayor, the European Programmes Management Unit (EPMU) • Acts as secretariat for Regional Committees • Ensures that European programmes are joined up with Mayoral initiatives • Manages and monitors ERDF programmes; - draft prospectuses, appraise/score bids, monitor pay and audit projects; • Drafts Regional ESF Framework; - approves ‘co-financing organisation’ plans and monitors their performance.

  6. London’s 2007-13 ERDF Programme • €182m to invest • Bidders must supply own match-funding; • Four Priorities • Priority 1: Business innovation, research, and promoting eco-efficiency €50m - Supporting services to business that address market failures and barriers to innovation • Priority 2: Access to new markets, finance, and strengthening entrepreneurship€52m - Tackling strategic barriers to growth faced by SMEs and entrepeneurs in understanding and accessing new markets • Priority 3: Sustainable Places for Business €73m - Supporting development of high-quality, low-carbon work environments for SMEs • Priority 4:Technical Assistance €7m

  7. London 2007-13 ESF Programme Structure

  8. Investment Priorities in London Programme Value: • £420million ESF Programme over 7 years. • Matched by a further £420m of domestic funding. • Programme splits into 2 phases: 2007-10 (£223m) and 2011-2013 (£197m) Three Priorities: Priority 1 Extending Employment Opportunities (71%) Priority 2 Creating a Skilled and Adaptable Workforce(28%) Priority 3 Technical Assistance(1%)

  9. London ESF Funding Split by CFO

  10. Lead contract providers by sector (2007-10)

  11. Programme Achievements to Date Expenditure • This year’s expenditure target met • 2012 target nearly met. Priority 1 • 67% of first-half funding spent • Targets exceeded or met Priority 2 • 76% of first half-funding spent, including the additional ‘revaluation’ funds. • Targets exceeded or met

  12. 2011-13 ESF Programme Development • £197million ESF for 2011-13. • London Regional ESF Committee endorsed a revised Regional ESF Framework for 2011-2013 in December 2009. • CFO activity • National Offender Management Service • London Councils • Department for Work and Pensions • Skills Funding Agency • London Development Agency • Greater London Authority?

  13. 2014-20 – the next programming period 1. ERDF and ESF • Mayor and London stakeholder’s response to EU’s ‘5th Cohesion Report’ http://ec.europa.eu/regional_policy/consultation/5cr/pdf/answers/local_authorities/city_london_2011_01_25.pdf • Draft regulations later this year • Simplification, innovation? • Splitting funding between EU states – and UK regions 2. Other European programmes?

  14. Contact: alexconway@lda.go.uk From 1 July –alex.conway@london.gov.uk

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