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John Hacking – Network for Europe.  Introduction to 2014-20 Programmes  Outline of Local Enterprise Partnerships (LEPs) and their role.  Opportunities.

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Presentation on theme: "John Hacking – Network for Europe.  Introduction to 2014-20 Programmes  Outline of Local Enterprise Partnerships (LEPs) and their role.  Opportunities."— Presentation transcript:

1 John Hacking – Network for Europe

2  Introduction to 2014-20 Programmes  Outline of Local Enterprise Partnerships (LEPs) and their role.  Opportunities for engagement & funding processes  Timetable and Next Steps  Short Table Top Activity  Q and A


4  Smart  Sustainable  Inclusive

5  The European Regional Development Fund (ERDF),  The European Social Fund (ESF)  The European Agricultural Fund for Rural Development (EAFRD)  Have been brought together into a single ‘EU Structural Investment Funds (ESIF) Growth Programme’

6 6

7  The ESIF will operate in the period 2014-20  The key priorities for the ESIF will be: (These are referred to as Thematic Objectives or TOs) The ESIF Thematic Objectives are: (1) strengthening research, technological development and innovation; (2) enhancing access to, and use and quality of, information and communication technologies; (3) enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF); (4) supporting the shift towards a low-carbon economy in all sectors;

8 5) promoting climate change adaptation, risk prevention and management; (6) protecting the environment and promoting resource efficiency; (7) promoting sustainable transport and removing bottlenecks in key network infrastructures; (8) promoting employment and supporting labour mobility; (9) promoting social inclusion and combating poverty; (10) investing in education, skills and lifelong learning; (11) enhancing institutional capacity and an efficient public administration.

9 European Structural and Investment Funds 2014-2020

10  Of the 10 Thematic Objectives in the 2014-20 ESIF programme 3 are ESF funded.  Thematic Objective 8 - Employment  Thematic Objective 9 - Social Inclusion  Thematic Objective 10 – Skills  At least 80% of ESF to be spent on these 3 TOs - minimum of 20% on Social Inclusion)

11 Overall the allocation to ESF Thematic Objectives 8,9 and 10 is:  Thematic Objective 8 (Employment): €1,008 million ESF. This reflects the important contribution that improving labour market participation will make both to growth and to social inclusion. In addition €160m from the Youth Employment Initiative, alongside an equivalent amount of ESF money, will address the challenge of youth unemployment in areas with highest rates.  Thematic Objective 9 (Social Inclusion): €703 million. Of this €136 million will be allocated to National Offender Management Service. The programme is contributing positively to the requirement that 20% of ESF at Member State is allocated to this objective.

12  Thematic Objective 10 (Skills): €1,305 million. The highest proportion of the ESF is allocated to the skills thematic objective. This reflects the potential of ESF to support additional provision at all skills levels to help individual progression and promote local growth.  These are in effect the ‘funding envelopes” in which LEPs allocate their resources to the various priorities they have identified locally.  Local priorities of LEPs must fit with national Priorities of the ESIF (ie the ESF and ERDF Operational programmes)

13  The Europe 2020 objectives relevant to the ESF are: ◦ Employment: 75 percent of the population aged 20-64 should be in employment. ◦ Social inclusion: 20 million less people across the EU should be at risk of poverty. ◦ Education: The share of early leavers from education and training should be under 10%; and at least 40% of 30-34 year-olds should complete third level education.

14  Promoting sustainable and quality employment (TO 8) and supporting labour mobility  Promoting social inclusion (TO 9), combating poverty and any discrimination  Investing in education, training and vocational training for skills (TO 10) and life- long learning

15  Access to Employment for Jobseekers and Inactive People (TO8)  Sustainable Integration of Young People  Active Inclusion  Enhancing Equal Access to Lifelong Learning  Improving the Labour Market Relevance of Education and Training Systems  Source ESF ENGLAND Operational Programme July 2014 (DWP)

16  TO10 Skills  Full Title of TO10  Promoting social inclusion, combating poverty and any discrimination  Investment Priority 4 - Enhancing Equal Access to Lifelong Learning  Full Title of IP4 Enhancing equal access to lifelong learning for all age groups in formal, non-formal and informal settings, upgrading the knowledge, skills and competences of the workforce, and promoting flexible learning pathways including through career guidance and validation of acquired competences

17  Need to focus on up skilling the population particularly in relation to intermediate skills.

18  Enhancing equal access to lifelong learning: will help more people gain the skills they need to meet their goals and the needs of the local economy. This is primarily about training, advising or supporting individuals.

19  The objectives of the ESF programme will be pursued in line with the principle of sustainable development, including the aim of preserving, protecting and improving the quality of the environment as well as the need to prepare for expected changes to the environment and climate.  The programme will build on the approach adopted in the 2007- 2013 ESF programme and the lessons learned during that programme.

20  The Managing Authority will require all programme providers to have sustainable development governance, policies and implementation plans which explain:  a) their commitment to promoting sustainable development and complying with relevant EU and domestic environmental legislation; and  b) how the commitment will be turned into action at project level.

21  The programme will promote equal opportunities and non- discrimination.  The Managing Authority and all partners involved in managing and delivering the programme will adhere to the principles and processes set out in EU and UK equality legislation.  no individuals are excluded from participation in the programmes on the grounds of their protected characteristics;  the needs of all potential participants are considered at project design stage in order that the service is appropriately targeted and delivered;  services are responsive to the needs of all communities and under- represented groups;  support is targeted towards under-represented communities where relevant;  responsiveness to, and inclusiveness of, under-represented groups in delivery and management.


23  Voluntary partnerships between local authorities and businesses formed in 2011 by the Department for Business, Innovation and Skills to help determine local economic priorities and lead economic growth and job creation within its local area  There are 39 LEPs ◦ Growing Places Fund: delivering local infrastructure priorities ◦ Regional Growth Fund: drawing private sector leverage for job creation ◦ Enterprise Zones: growth stimulation via simplified planning and business tax breaks ◦ City Deals: Removing barriers to growth

24  Local Enterprise Partnerships (LEPs) have a rapidly expanding role in driving the local economic growth agenda.   LEPs were originally created as private sector-led public : private sector partnerships.  As a result previous VCSE engagement with LEPs has been minimal.  However, since they assumed responsibility for EU Funds their role has expanded into areas such as: Skills for employment; Social inclusion; Environment and climate change; Social innovation and Youth unemployment.

25  From 2013 their role has included developing investment strategies for European Structural Funds Investment.  The majority of the funds in the ESIF Programme will be notionally allocated to LEPs areas for 7 years (mid term review*)  LEPs will work with local partners, to set out their the priorities for the EU Growth Programme Funds in their area in an ESIF investment strategy  LEPs have produced Local ESIF Investment Strategies which set out local priorities and indicative allocations of funds.

26  Developing strategy, working with wide range of partners  Production of ESIF Investment Strategy*  Selecting projects (commissioning, bidding and co-financing)  Identification of match funding  Spend allocation (on time and in line with EU regulations)  Ensure outcomes delivered  Monitor delivery against strategy and programme priorities  Not responsible for administering the funds (remains with Managing Authorities)

27 LEP: ESIF Strategy Development  Local area characteristics, evidence base and vision  Formulating business case  Priorities and distribution across themes  Match funding (opt-ins and delivery tools)  Outputs and Results  Delivery arrangements  Consultation  Second (final) LEP submission  Negotiations with EU Commission  England Operational Programmes (ESF/ERDF)*  UK Partnership Agreement (agreed Oct 14)

28  No spend till they agreed.  ERDF – “Following an initial informal meeting with the European Commission in early September, DCLG are waiting to receive formal feedback on the ERDF OP which we hope to receive soon. Once we receive the feedback we will meet with the Commission during November and December to progress the range of issues that are live and still-to-be agreed, including the business process. This work will lead to a revised ERDF OP that will be submitted back to the Commission for further negotiation and discussions. “

29  ESF – “ DWP has received formal comments from the European Commission (EC) about the Operational Programme and is considering and discussing them with the EC. DWP will be revising the OP with the aim of adoption by the end of the year.”

30  National ESIF Growth Programme Board ◦ development of the ESIF Growth Programme ◦ co-ordination with other programmes ◦ strategic and operational impact and alignment with complementary growth measures  Managing authority ◦ Overseeing application process, ensuring eligibility, ◦ Claims and payments ◦ Audit responsibility  Local ESIF Committee (each of the 39 LEPs to have one)

31  Local Authority  Business partners (including small businesses and social enterprise as appropriate to the LEP area.  VCSE  Equalities and non-discrimination  Environment (with relevant expertise in e.g. sustainable development)  Trade Union and employer representation  Higher Education  Education, skills & employment (eg Local Skills Partnership Board /Colleges)  Managing Authorities for each of the ESIF funds and BIS Local

32  The Local ESIF Committee is responsible for : ◦ Ensure local operational delivery ◦ Oversee development of pipeline of proposals ◦ Make recommendations for investment ◦ Monitoring performance at local level

33  Majority of LEP areas have established the ESIF Committee  Specific tasks are being undertaken to ensure “ a prompt start to project activity once Operational Programmes are approved” (DCLG Oct 14) Working closely with Opt-In Organisations to advise on the detailed activity and planned spend in each LEP area. Considering how project calls may be structured, building on Local Implementation Plans Local Implementation Plans are basic plans which include output information; spend profiles; planning for the first round of projects calls for 2015 and confirming allocations to Opt-In organisations. All LEPs have submitted these to Govt and they are being reviewed.

34  There are 2 approaches:  First is engagement with LEPs to influence  Policy  Type of provision  Procurement Methods  Typically; ◦ National representative bodies NCVO, TSNLA, NIACE etc ◦ Local sector networks and partnerships, Skills Consortia,Learning Partnerships, CVSs, Social Enterprise Partnerships etc Second is as a Provider:

35 2 routes for making funding available: ‘calls’ or ‘Opt-Ins’  Call: open invitation for applicants to submit proposals against a published specification issued by the Managing Authority  Opt-in: a procurement process undertaken by the Opt-In organisations working with LEPs  For ESF programmes delivered through Opt-in organisations, applications will go through the Opt-in Organisations who will be responsible for procuring ESF activity  Opt in organisations include ◦ DWP ◦ Skills Funding Agency ◦ Big Lottery Fund ◦ National Offender Management Service

36 What Are Opt-Ins?  They are national public bodies or equivalent to national public bodies.  They fulfil their statutory functions in relation to one or more of the activities described in the Operational Programme.  They have sufficient eligible match funding for an agreed duration within the time period of the Operational Programme.  They have sufficient infrastructure and expertise to carry out the duties.  The providers which will receive support from the European Social Fund are selected in accordance with open and competitive selection procedures.

37 What Are Opt-Ins?  They are national public bodies or equivalent to national public bodies.  They fulfil their statutory functions in relation to one or more of the activities described in the Operational Programme.  They have sufficient eligible match funding for an agreed duration within the time period of the Operational Programme.  They have sufficient infrastructure and expertise to carry out the duties.  The providers which will receive support from the European Social Fund are selected in accordance with open and competitive selection procedures.

38 Opt-Ins  About 80% of ESF will be spent through Opt-Ins  All will have different procurement/grant routes  DWP/SFA will be a procurement route similar to the current programme.  SFA wont have Minimum Level of Contracting  SFA will use ACTOR (Bravo).  SFA will have 2 or 3 procurement ‘rounds’ a year. Depending on LEP needs.

39 Points to Note Considerations:  Local programmes: knowledge and familiarity of local strategies - where do you fit?  Financial pressures: push towards larger contracts remains  Demonstrating capability: Quality standards, track record, capacity to delivery, measuring impact  Likely to access as: ◦ Lead contractor ◦ Partner ◦ Sub-contractor ◦ Second level subcontractor


41 GOOD NEWS!! The ESF Operational Programme for England says : “Civil Society organisations have a strong track record in reaching, engaging and supporting the most vulnerable through multi- sectoral partnerships to ensure achievement of positive outcomes for the socially excluded in terms of employability and ‘distance travelled’. They will play an important role in the delivery of ESF provision for vulnerable groups, developed and delivered within local communities themselves and through grass-root approaches. “

42  The UK Partnership Agreement signed by the European Commission on 15 th October 2014 says:  “The strategy identifies those working at the local community level, from public, Voluntary and Community, and Social Enterprise sectors, as well placed to identify and drive forward the solutions that are needed. “

43  Next Steps  Review project/activity fit with the LEP ESIF Strategy.  Local ESIF can be Googled easily. Most LEPs have a website now.  LEPs have developing project pipelines. LIPs are not the last word.  Start negotiations with potential partners, whether they are delivery, referral or funding partners.  Identify and bid for sources of match funding.   Build relationships with the LEP team.

44 Timetable Key Programme Dates  December: Operational Programmes expected to be adopted;  November: Calls and guidance information to be provided to partners;  December/January: Designation of the GPB as the formal Programme Monitoring Committee (PMC) for Structural Funds in the Growth Programme.

45 End-October  LEP areas produce indicative outputs and spend forecasts* as preparation for the Operational Programme discussions with the European Commission. * Local Implementation Plans Mid-October  First LEP Area ESIF committees meet in shadow form and start to discuss pipeline, CLLD plans and Local Implementation Plans. February  MA finalise specifications with local partners and prepares first call For operations as specified in Local Implementation Plans -For Opt-in activity

46 Spring 2015 onwards  First expected investments on the ground, including through Opt-ins

47  The general slow progress of programme starts for this new period has triggered a serious issue which could lead to significant delays in further OP adoption:  With so many OPs now not due to be agreed until 2015, the EU will need to transfer the commitments for 2014 into 2015 and thus possibly to amend the EU’s Multiannual Financial Framework.  The consequence of this could delay agreement of the UK’s operational programmes by 6 months.  The English ESF Operational Programme has received formal written comments and a number of issues still need to be ironed out.   DCLG has not yet received written comments on the ERDF draft Operational Programme; it is understood this has a greater number of issues to be resolved.

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