1. …help yourself to a cup of coffee!

2. Welcome & Introduction Mandip Rai Head of LLEP

3. Why we’re here…….. Communicate the LLEP’s role in EU Structural Funds to organisations, individuals, groups and networks in Leicester & Leicestershire Engage with key individual stakeholders to form our Structural Investment Funds (SIF) Strategy Ensure inclusive participation and contribution to develop our SIF strategy Agree draft priority thematic objectives that should shape our SIF Strategy Consider potential activities, investment priorities and pipeline projects/programmes

5. Agenda 10.00Welcome & Introduction – Mandip Rai, LLEP 10.05An introduction to EU Funding 2014-20 - Pete Holmes, DBIS 10.15EMC Technical Assistance Project - Andrew Pritchard, EMC 10.25Q&A 10.35The Leicester & Leicestershire economy: Some Facts & Figures 10.50The LLEP Priorities - Caroline Boucher, LLEP 11.00Coffee break 11.15 Workshop: Investment priorities for the LLEP area 12.30Feedback: Top investment priorities and potential projects 12.50 Next Steps & Closing Remarks – Mandip Rai, LLEP 13.00 Lunch & Networking

6. Workshop Investment Priorities / ActivitiesPotential Projects / Programmes Employment, Skills & Social Inclusion

7. 2014-2020 European Structural and Investment Funds Pete Holmes pete.holmes@bis.gsi.gov.uk Tel: 0115 872 4722

8. The Story so far April 2012 - Government consultation Autumn 2012 – New delivery model developed – single EU Growth Programme (ERDF, ESF and EAFRD). Developed in response to stakeholder demands: Place based, flexible geographies Improved responsiveness to local needs Simplified management and integrated planning November/December 2012 – Roadshows April 2013 – Preliminary guidance June 2013 – Notional Allocations – Leicestershire: 126.3 million euros July 2013 – Detailed Guidance

11. LEP Roles and Responsibilities Develop EU SIF strategy, working with wide range of partners (including collaboration) Select and prioritise projects through commissioning, bidding and co-financing Identify match funding Spend allocation on time and in line with priorities in EU regulations Ensure outcomes delivered Monitor delivery against strategy and programme priorities Not responsible for administering the funds (this remains with MAs – DCLG, DWP and Defra)

12. Engaging Partners EU rules require involvement of wide range of partners to develop and deliver strategies (including businesses, trade unions, local authorities, civil society, rural partners, environmental interests, equality and non- discrimination bodies and further and higher education). In rural areas at least 5% of the Rural Development Programme has to be spent through Local Action Groups using LEADER principles. LEPs and partners to decide how much to spend on each thematic objective

13. Key content for draft strategies Local narrative: market failures, risks, needs and opportunities drivers and barriers vision Investment priorities: preferred breakdown of spend by fund, thematic objective and investment priorities match funding outputs/results Collaboration: Plans to collaborate with other LEPs – with details of themes and geographies Governance and cross-cutting themes

14. Timetable Detailed Guidance -by mid July Draft LEP SI Fund Investment Strategies -by end Sept Draft Partnership Agreement -Autumn 2013 Final LEP SI Fund Investment Strategies -January 2014 Start of Programme -Mid 2014 First review of notional allocations2017

15. EMC Technical Assistance Project Andrew Pritchard Director of Policy & Infrastructure

16. Introduction What is it all about? Some background Project objectives and timescales Your mission today…

17. What is it all about? A technical assistance project led by East Midlands Councils to provide an evidence base for future EU funding To make sure that we maximise the potential of EU investment across the East Midlands Strong support from DCLG & Council Leaders for project

18. Current Experience Spend under the current ERDF Programme has been slow Too many small projects - difficult to see a strategic impact Original operational programme did not fully meet local needs - e.g. Broadband

19. Future Challenges 1 region replaced by 7 LEPs – 4 overlapping Pressure for early spend on projects that will deliver clear outcomes LEP notional allocations to be reviewed in 2017- under-performance could be penalised

20. Threats v Opportunities

21. What are we going to do? Facilitate a series of consultation events Develop an evidence base (or ‘socio- economic framework’) to inform both the UK Growth Programme and individual LEP Strategies – working with NTU. Highlight potential areas of collaborative activity that can maximise strategic impact and reduce ‘transaction costs’

22. Events Diary 1 st July: Greater Lincolnshire LEP 5 th July: Leicester & Leicestershire LEP 9 th July: Competitiveness Round Table 16 th July: NEP/SEMLEP 22 nd July: D2N2 25 th July: Green Economy Round Table

23. Project Timescales End of July 2013: Interim Report September 2013: draft Framework December 2013 – final Framework January - June 2014 Awareness raising

24. Key Outcomes “It’s the economy, stupid” More Jobs Less Worklessness

25. Your mission today… To think about how best EU funding could be used to address local challenges To highlight areas or issues where wider collaboration might be helpful. To ask if you do not understand.

27. East Midlands PA3 Project Socio-Economic Evidence – the future of European Funds in Leicester & Leicestershire 5 th July, 2013 Chris Lawton Nottingham Business School

28. Project Rationale and Objectives The project aims to provide socio-economic evidence to help identify synergies, linkages and common challenges across LEPs within or overlapping the East Midlands To identify opportunities for collaboration across the themes identified in the ‘Europe 2020’ strategy The UK Government would: “like to see Local Enterprise Partnerships working with each other to deliver a bigger impact… and achieve economies of scale wherever possible” Source: HM Government, April 2013. ‘Technical Annex: Preliminary guidance to Local Enterprise Partnerships on development of Structural & Investment Fund Strategies.’ paragraph 2.8, p. 4.

29. Contains Ordnance Survey data © Crown copyright and database right, 2013. Local Enterprise Partnerships within or overlapping the East Midlands Region

30. Chart 1: Headline GVA per head indices (UK=100) NUTS2, 2011 Economic Context Source: ONS Crown Copyright, 2012. ‘Regional Gross Value Added, 2011’.

31. Economic Context Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2008 and January-December 2012. From NOMIS [accessed 24 th June, 2013]. Chart 2:Employment rate (% working age residents), 2012

32. The SME environment remains difficult, but some signs of improvement: – Business death rates have fallen since 2009 and business birth rates have increased – Survival rates for new businesses have significantly decreased since pre-recession – Small businesses (<50 employees) have been more likely to retain staff but cut/freeze wages and investment, with resulting lost productivity – Large businesses (>250) more likely to cut staff whilst maintaining investment and productivity levels Lenders report that demand for credit remains low Despite some structural improvements, firms seeking credit continue to report difficulties in the supply of finance Exports have been growing moderately in recent months EU Thematic Objective: SME Competitiveness

33. Chart 3: Business Births and Deaths (as a % of end-of-year count of active enterprises), 2011 Source: ONS Crown Copyright, 2012. ‘Business Demography 2011 – Enterprise Births, Deaths and Survivals.’ EU Thematic Objective: SME Competitiveness

34. SME Competitiveness: Business Birth Rate (as a % of end- of-year count of active enterprises), 2011 Source: ONS Crown Copyright, 2012. ‘Business Demography 2011 – Enterprise Births, Deaths and Survivals.’ Contains Ordnance Survey data © Crown copyright and database right, 2013.

35. Chart 4: Two year business survival rate from year of birth (%) EU Thematic Objective: SME Competitiveness Source: ONS Crown Copyright, 2012. ‘Business Demography 2011 – Enterprise Births, Deaths and Survivals.’

36. Chart 5: Innovation inputs: Business Enterprise Investment in R&D (as a % of total workplace GVA), 1999 and 2009 EU Thematic Objective: Innovation Source: Department for Business, Innovation and Skills, 2012. ‘Regional Economic Performance Indicators – Live Tables’.

37. EU Thematic Objective: Innovation Chart 6: Employment in High and Medium-High Technology Industries (% work- based employment), 2011 Source: ONS Crown Copyright, 2012. ‘Business Register and Employment Survey, 2011.’ Data accessed from NOMIS [17 th June, 2013] and analysed under Chancellor’s Notice Ref NTCBRES11-P0537.

38. Innovation: Employment in High and Medium-High Technology Industries (%), 2011 Source: ONS Crown Copyright, 2012. ‘Business Register and Employment Survey, 2011.’ Data accessed from NOMIS [17 th June, 2013] and analysed under Chancellor’s Notice Ref NTCBRES11-P0537. Contains Ordnance Survey data © Crown copyright and database right, 2013.

39. EU Thematic Objectives: Employment, Social Inclusion and Skills Chart 7: Unemployment Rate (% 16+ resident population), 2012 Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2012. From NOMIS [accessed 14 th June, 2013].

40. Employment, Social Inclusion and Skills: Unemployment – model-based estimates (%), 2012 Source: ONS Crown Copyright, 2012. ‘Model-based estimates of unemployment’, January-December 2012. From NOMIS [accessed 17 th June, 2013]. Contains Ordnance Survey data © Crown copyright and database right, 2013.

41. EU Thematic Objectives: Employment, Social Inclusion and Skills Chart 8: Trends in the Unemployment Rate (% 16+ resident population), 2007-2012 Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2007 to January-December 2012. From NOMIS [accessed 14 th June, 2013].

42. Source: ONS Crown Copyright, 2012. ‘Annual Population Survey’, January-December 2012. From NOMIS [accessed 17 th June, 2013]. Contains Ordnance Survey data © Crown copyright and database right, 2013. Employment, Social Inclusion and Skills: Resident Adults Qualified to a Level 4 (first degree) and above (%), 2012

43. Key Points Some improvements (e.g. business births and deaths), but overall economic context remains challenging North-south or east-west divides (depending on topic) exacerbated by the recession: – Unemployment/Social Exclusion: north-south divide – Enterprise and Skills: north-south and east-west – Innovation: east-west (M1 corridor) Importance of manufacturing and large firms in regional innovation activity Enterprise, innovation and low-carbon themes will be explored further in x2 regional round-tables

44. Common Issues: Leicester & Leicestershire Enterprise Partnership SME CompetitivenessInnovationEmployment, Social Inclusion and Skills GCGP, NEP and SEM- relative resilience (of Leicestershire CC) in employment/output 2008- 2012 Greater Lincolnshire, SEM and NEP – pockets of high business birth rates Construction – important employer across the East Midlands D2N2 – high tech manufacturing in south Derbyshire/north Leicestershire (M1 corridor) – a range sub-sectors with possible inter-relationships Greater Lincolnshire and GCGP – Food & Drink D2N2 and Sheffield City Region – Leicester City significant increases in unemployment and youth unemployment GCGP, NEP and SEM – South Leicestershire common opportunities related to a highly skilled workforce (and common risks of local under- employment/’brain-drain’)

45. Leicester & Leicestershire Economic Priorities Caroline Boucher

46. GVA and Productivity Total GVA in the LLEP area grew by 1.5% from 2010 to 2011 (national growth 2.3%). Current GVA is £19.4b GVA per head is below national levels and growth rate is slower than national growth (0.7% Leicester, 1% Leicestershire, 1.4% England) Gap remains between local and national workplace earnings

47. Private Sector Job Growth There was a decline of 25,100 jobs in the LLEP area between 2008 and 2011 At - 5.5%, this rate of decline is above the national rate (-2.7%) Employment fell from 2010 to 2011 in LLEP area (-2%), whereas grew +0.3% nationally Share of employment in public sector has fallen faster locally than nationally (2010 to 2011) but quite high dependency remains in Leicester City (25.4%)

48. Employment Structure, LLEP Area & England, 2011 (Source ONS: BRES 2011, via nomis)

49. Employment Structure, LLEP Area & England, 2011 (Source ONS: BRES 2011 via nomis)

50. Predicted Job Openings to 2020 LLEP Area, by Sector Top 9 Sectors – job openingsTotal job openings Skills issues by level Wholesale and retail35,000H M L E Health and social work/care21,000H M L E Support services (business admin)20,000H E Education19,000H E Manufacturing including engineering and food & drink 18,000H M L E Professional services18,000H M E Construction17,000H M L E Transport & storage12,000H L E Accommodation & food10,000L E Source: UKCES Data, IER/Cambridge Econometrics Model, H=High, M=Intermediate, L=Low/Entry Note: Figures include replacement demand and new job openings E=Employability Skills

51. Predicted Job Openings to 2020 LLEP Area, by Occupation Occupation GrowthNumber of job openings Professional occupations (especially science & technology)44,000 Managers and professional administrators30,000 Associate professional and technical27,000 Care, leisure, personal services (nearly all growth in care)26,000 Elementary occupations19,000 Administrative and secretarial19,000 Skilled trade occupations (especially skilled electrical & metal)18,000 Sales and customer services17,000 Process, plant and machine operatives12,000 Source: UKCES Data, IER/Cambridge Econometrics Model Note: Figures include replacement demand and new job openings

52. Workforce qualification differences… Level 2012 data Leicester CityLeicestershire County England NVQ 4 equivalent (degree)28%30%34% NVQ 3 equivalent (A levels)48%55% NVQ 2 equivalent (GCSEs)64%73%72% Other Qualifications 10%6% NO Qualifications 14%8%9.5%

53. LLEP Ambitions to 2020 Create 25,000 new private sector jobs Attract £2b private sector investment Increase GVA from £19b to £23b

54. LLEP Priorities Create a business friendly physical environment through investment in infrastructure – transport, employment land, housing Build on our strengths in manufacturing and logistics sectors, grow the knowledge-based sectors and develop our growth sectors (space and aerospace, environmental technologies, creative design) Ensure skills supply meets employer demand – now and in the future Support people, particularly young people into the new jobs that will be created and into replacement demand Raise aspirations and communicate a diverse range of local opportunities

55. Thank you