1. EU COMMON STRATEGIC FRAMEWORK FUNDS 2014-2020
CEDOS 15 February 2013

2. - CSF FUNDS ‘ALLOCATED’ TO THE UK - STRUCTURAL FUNDS, RURAL DEVELOPMENT & FISHERIES FUNDS
EUROPEAN REGIONAL DEVELOPMENT FUND (£2.8 bn 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 regeneration
10 programmes in England managed by DCLG (previously RDAs)
EUROPEAN SOCIAL FUND (£2.5 bn 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

3. - CSF FUNDS ‘ALLOCATED’ TO THE UK (continued) - STRUCTURAL FUNDS, RURAL DEVELOPMENT & FISHERIES FUNDS
EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (£3.7bn 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 )
Smart, green fisheries (to address discards); aquaculture businesses ; coastal communities dependent on fishing. 1 UK programme / DEFRA.

4. CURRENT DELIVERY ARRANGEMENTS
No additional notes

5. 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 / ITIs
Broader range of partners locked in (esp SMEs)
Pooled knowledge & lessons learned
Better co-ordinated approach to HMG match-funding
Transparent allocations

6. PROPOSED DELIVERY ARRANGEMENTS 2014-2020
Projects
Community Led Local Development, including Leader and FLAGs
Maritime and Fisheries
Programme
(EMFF)
Rural
Development
(EAFRD)
Growth Programme
(ERDF, ESF & EAFRD)
CSF Growth
Teams
Co-financing Organisations
LEPs / ITIs

7. 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.

8. GROWTH PROGRAMME ORGANISING PRINCIPLES
Complex EU funds packaged as a coherent and consistent programme
Variable geographies
National and local priorities aligned
BETTER FOCUS
HIGHER IMPACT
INCREASED GROWTH
Local decision making and drive
A single set of targets and milestones across England
Common standards and transparent accountabilities
EU regulatory requirements met and financial risk minimised
Lower cost & simplifies administration

9. 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

10. 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

11. 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%)

12. ‘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:
Innovation
SME competitiveness
Low carbon and energy efficiency (at least 20%)
A N other?

13. WHERE ARE WE NOW? Ministers agree domestic delivery
EU Commission tests & launches proposals
Ministers agree domestic delivery
Go live
Mid 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

14. NEXT STEPS : EUROPE
EU 7 year budget deal agreed by Member States 7 Feb
Financial 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

15. 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?!

16. 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?