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EUROPEAN STRUCTURAL & INVESTMENT FUNDS 2014-2020 COAST TO CAPITAL WORKSHOP 25 July 2013 PowerPoint Presentation
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EUROPEAN STRUCTURAL & INVESTMENT FUNDS 2014-2020 COAST TO CAPITAL WORKSHOP 25 July 2013. Sue Baxter & Tim Courtney Department of Business, Innovation & Skills. THE STORY SO FAR …. April 2012 Government consultation – which way forward? April – Sept ‘12 Workshops & sectoral events

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EUROPEAN STRUCTURAL & INVESTMENT FUNDS 2014-2020COAST TO CAPITAL WORKSHOP25 July 2013

Sue Baxter & Tim CourtneyDepartment of Business, Innovation & Skills

the story so far
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
slide3

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

slide4

MA Local

  • Teams

LEPs

PROPOSED ENGLAND EU PROGRAMME 2014-2020: STREAMLINED & INTEGRATED

SINGLE EU GROWTH PROGRAMME: > €6.2bn

(ERDF, ESF & part of EAFRD)

Maritime and Fisheries

Programme

(EMFF)

Rural

Development

Programme

(EAFRD)

Community Led Local Development,

PROJECT PROPOSALS

slide5

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)
slide6

Local Growth Fund(LGF)

ESI funds

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

Summer: Confirmation of design &

scope of the SGLF

Publication of guidance

7 October: LEPs submit ESI funds

strategies

December : LEPs produce draft strategic economic plans

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

March: Final Strategic Economic Plans to Government

July: Local Growth Deal negotiations completed

Early 2014: Minimal time for local preparation;

Mid 2014: ESI funds ‘go live’

Delivery starts

LGF goes live mid 2015

Aligned spending :LGF & ESI funds

TIMELINES

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

slide7

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)
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ESI CORE THEMES

COAST TO CAPITAL LEP

Innovation

At least 80% ERDFmust be spent on these 4 themes, of which at least 20% (tbc) on low carbon

SME Competitiveness

Low Carbon (high priority)

ICT

Climate Change Adaptation

Lower priority

Environmental Protection

Lower priority

Sustainable Transport

Lower priority

Employment

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

1) Unemployed people into employment

2) 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

ESI RINGFENCING REQUIREMENTS

slide9

Indicative Checklist

Policy fit

EU vision: EU 2020

Your Project

Proposal

UK vision: national policy & programmes

C2C LEP vision

Business case

Alignment with programme theme

Evidence of need

Rationale for intervention & use of public funds

Innovation

SME Competitiveness

Outputs, Impact & Outcomes

Low Carbon

VFM

ICT

Deliverability

Climate Change Adaptation

Match funding

Environmental Protection

Risk management assurance

Sustainable Transport

Timeframe

Employment

Compliance

Skills

Eligibility with funding rules

Social Inclusion

Audit trail

Institutional Capacity

Endorsement from key partners

DEVELOPING STRONG PROJECTS

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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!
slide12

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
slide13

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)
slide14

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