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D2N2 LEP: European Structural and Investment Funds

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Presentation on theme: "D2N2 LEP: European Structural and Investment Funds"— Presentation transcript:

1 D2N2 LEP: European Structural and Investment Funds 2014-2020
Richard Kirkland ESIF Coordinator Priorities and Processes Introduce self, role, Define ESIF Purpose – few words about where D2N2 is with its ESIF work, the next steps and particularly the D2N2 ESIF Local Implementation Plan consultation document that you have in your papers.

2 Purpose of the Presentation
To give an overview of the ERDF application process To explain the governance and partnership arrangements involved in managing and delivering the programme To outline the nature, range and scope of current ERDF calls To explain the ‘route to market’ for projects To give an opportunity to seek further clarification

3 D2N2’s ‘ESIF’ role A local ESIF 2014-2020 strategy for;
£104.4m ERDF (European Regional Development Fund): Supporting business, particularly SMEs £104.4m ESF (European Social Fund) Supporting people with employment and skills £5.5m EAFRD (European Agricultural Fund for Rural Development) Supporting economic growth in rural areas Bring partners together to oversee’ implementation and spend through its ESIF Programme Board So, what are European Structural and Investment Funds, what are they worth in our area and what is our role as a LEP. In 2013, Government asked each of the 39 LEPs to draw up a six year strategy for spending a notional allocation of ESIF funds. The D2N2 allocation was one of the largest in the country as was made up of Making a total of £244m Euros. The strategy has been through 3 iterations between October 2013 and June It is a strategy for the whole LEP area. However, we now need to very much need to move towards and focus on implementation. Having led the preparation of the Strategy the ongoing role of the LEP is to bring a range of partners together to advise on its effective implementation. Put a strategy together then Advise the Managing Authority which bids fit with that strategy The ‘ESIF’ Strategy is provides ‘fuel in the tank’ to help deliver our strategic economic plan, Key differences between the LGF and ESIF is that whilst LGF funds will be devolved to an ‘accountable body’ in the D2N2 area, the ESIF funds will be held by Government and our role will be give endorsement to the projects that we will wish to see funded.

4 D2N2 ‘ESIF’ Funding by Priority Axis
% of each Fund % of ESIF Total ERDF 1 Innovation 20.9 20% 10% 2 ICT 10.5 5% 3 SME Competitiveness 39.1 37% 18% 4 Low Carbon 23.5 23% 11% Total 1-4  94.0 90% 44% 5 Climate Change 5.2 2% 6 Protecting the Environment / Resource Efficiency Total 5-6  10.4 Total ERDF 104.4 100% 49% ESF 8 Employment 41.8 40% 19% 9 Social Inclusion 10 Skills 41.9 Total ESF  Total EAFRD 5.5 3% TOTAL ESIF 214.3 So, what are European Structural and Investment Funds, what are they worth in our area and what is our role as a LEP. In 2013, Government asked each of the 39 LEPs to draw up a six year strategy for spending a notional allocation of ESIF funds. The D2N2 allocation was one of the largest in the country as was made up of Making a total of £244m Euros. The strategy has been through 3 iterations between October 2013 and June It is a strategy for the whole LEP area. However, we now need to very much need to move towards and focus on implementation. Describe balance of spend between priority axis – show variety of acitivity

5 Programme of Calls / Opt-Ins
FUND(s) Calls / Opt In Commission Approx Value Call Open ERDF & EAFRD Combined Business Support and Innovation TBC Autumn 2015 ESF Skills for Sector Growth, Enterprise and Innovation £7,500,000 Summer 2015 ERDF Economic Infrastructure £4,500,000 Sustainable Urban Development (Nottingham) £5,000,000 Time2Change £6,000,000 Social Inclusion Programme £6,700,000 Generating Outcomes £1,000,000 CAREERS Local £2,000,000 D2N2 Youth Employment £3,200,000 ESF & ERDF Community Programme £4,800,000 Spring 2016 Un-named - Employment £1,500,000 Social Inclusion (provisional) £500,000 £42,700,000

6 Preparing for Implementation
HMG to agree ‘Operation Programmes’ with EC A Draft Local Implementation Plan Consultation Learning from past programmes Delivered through ‘calls’ and ‘opt-ins ‘Early Calls’ – out now! However we can’t begin to spend our ESIF funds until the Government has agreed its Operational Programmes with the European Commission. In preparation for this, we’ve consulted on a detailed draft Implementation Plan so that we have a comprehensive programme and timetable of calls and op-activity ready to implement, when we are allowed to do so. The draft plan has been refined through the consultation process and built on learning from past programmes too. The purpose of ESIF funds is to be fuel in the tank for delivering the Strategic Economic Plan; therefore the Consultation Document, therefore the Draft Local Implementation Plan, is structured around the themes of the SEP Our programme with be delivered by a range of ‘calls’ and opt ins . Through calls in which we specify the activities that we want to see delivered and through an open invitation, organisations can bid to provide 50% ‘match funds. Those bids would be assessed against compliance with EU regulations by Government and the ESIF programme board would advise which bids which it considers best deliver the strategy. The second approach is to be more specific about what we want to see delivered through commissioning ‘opt in’ organisations that have matched our ESIF funds ‘at source’. Through opt ins we will be looking for tenders to deliver a defined service. The ‘Opt-in’ model now only applies to ESF funding and, through extensive consultation with officers; the consultation document suggests a range of programmes to be implemented thorough opt-ins with the Big Lottery, the Skills Funding Agency and DWP. It is designed to offer an integrated programme that adds value to existing delivery and supports people to move closer to, into and up in the labour market. Our approach to is provide for fewer larger calls to encourage joined up applications of scale and impact

7 ESIF ‘Early’ Calls Technical Assistance
27th May PA1: Innovation £14,000,000 29th May PA3: SME Competitiveness £12,500,000 20th May PA4: Low Carbon £10,000,000 6th May National Products – Business Support £1,500,000 June EMPLOY LOCAL (SFA Opt In) £6,000,000 SKILLS LOCAL (SFA Opt In) £7,000,000 22nd May Youth Employment Initiative £3,200,000 Technical Assistance

8 European Structural & Investment Fund 2014-20 Open Route
ERDF / ESF Operational Programmes ESIF Strategies (set out local strategic priorities) European Structural & Investment Fund Open Route Inception to Funding Agreement (excluding Opt-Ins, Fis, SUDS) Applicant Outline Application against Call Specification Full Application Funding Agreement Managing Authority Publish Call Assess Outline (Gateway & Core Selection Criteria) Full Technical Appraisal (Core Selection Criteria) Selection into Programme Local Implementation Plan (Scope and Timing of Calls Call Specification Promote and Publicise Call Discuss and endorse selection Assess Application against ESIF, call specification and Prioritise Assess Full application and review technical appraisal against ESIF and prioritise LEP ESIF Programme Board

9 D2N2 ERDF Priorities Innovation – new products, new markets, business processes Business Support – ICT, connectivity, incubation space Access to Finance – early growth finance Rural – Business Adviser/grants (EAFRD) 8 Priority Sectors – Actions Plans for Low Carbon, Construction, Visitor Economy, Food & Drink Manufacturing, Life Sciences, Transport Equipment Manufacturing, Transport & Logistics, Creative Industries D2N2 Growth Hub The EU regional policy is financed by three main funds, the European Regional Development Fund (ERDF), the European Social Fund (ESF), both referred to as “Structural Funds” and the Cohesion Fund (CF). These funds are based on the principles of co-financing and shared management. EU financial support always runs alongside national public or private financing. Depending on a number of socioeconomic factors, the co-financing may vary between 50% and 85% of the total cost of interventions. The guidelines for ERDF and ESF actions are designed at European level, whereas implementation on the ground is managed by the relevant national or regional authorities in each Member State.

10 D2N2 ESF Priorities Develop employer led flexible provision to add value to mainstream activities Address Market Failure Better prepare people to secure jobs Remove barriers to employment Engage with new businesses to invest in skills Coverage and coherence across D2N2

11 Social Inclusion Framework
D2N2 ESF Programmes Social Inclusion Framework Inspire Local YE (D2N2) YEI (N) CAREERS Local EMPLOY Local SKILLS D2N2 Growth Hub

12 PA1: Promoting Research & Innovation
Investment Priority 1a - Develop and enhance the research and innovation infrastructure that will lead to greater commercialisation of products, services and processes Investment Priority 1b - Improve commercialisation of SME products and services through investment, collaboration and supply chain development

13 PA1: Promoting Research & Innovation
D2N2 Focus: “The 4 Cs of Smart Specialisation” – Choices & Critical Mass; Competitive Advantage; Connectivity & Clusters; Collaborative Leadership Building collaborative research between enterprises, research institutions, and public institutions. Supporting businesses, including social enterprises, to commercialise research and development. Investing in facilities and equipment supporting the collaboration and commercialisation activity.

14 PA3: Enhancing the Competitiveness of SMEs
Investment Priority 3a -Promoting entrepreneurship, new business formation and incubation particularly in areas with low levels of enterprise activity and amongst under-represented groups. Investment Priority 3c – Increasing the growth capacity of SMEs through stimulating productivity drivers – new products, supply chain collaboration, technological and business infrastructure and finance Investment Priority 3d – Increasing the growth capability of SMEs by tackling barriers to regional, national and international markets

15 PA3: Enhancing the Competitiveness of SMEs
D2N2 Focus: Support an entrepreneurial culture , reduce barriers to entrepreneurship and boost levels of business formation and survival in both rural and urban areas. Provide high quality support to help established SMEs to grow further (D2N2 Growth Hub). Support higher levels of SME exports, international business activity and inward investment. Increase the contribution to the economy of SMEs within priority sectors and their supply chains.

16 PA4: Supporting the shift towards A Low Carbon Economy
Investment Priority 4b – Promoting energy efficiency and renewable energy use in SMEs Investment Priority 4e – Implementing whole place low carbon solutions Investment Priority 4f – Promoting research and innovation in low carbon technologies

17 PA4: Supporting the shift towards A Low Carbon Economy
Support D2N2 Low Carbon Plan ( ‘build the market in low carbon environmental technologies, goods and services, delivering sustainable economic growth and contributing to mitigating the effects of climate change.’ Supporting the non-domestic sector to deploy low carbon technologies and focus on energy efficiency. The development of whole place low carbon solutions. Accelerating the development, innovation, adoption and deployment of low carbon technologies and related supply chains/ infrastructure.

18 D2N2 ESIF Governance Lead role for LEPs – 7 year ESIF allocations
Bring partners together to ‘oversee’ implementation - ESIF Programme Board Develop and agree ESIF strategy / Draft Local Implementation Plan with partners Agree projects with Managing Authorities Monitor project delivery against strategy and programme priorities Not responsible for administering the funds (remains with Managing Authorities) No Stone Unturned’ published October 2012 Government response March 2013 – 81 out of 89 recommendations accepted, 5 rejected, 3 in SR Increasing Whitehall asks of / offers to LEPs - and increasing focus on their performance Single Local Growth Fund from 2015 LEPs to develop multi year strategic plans Funding to be allocated though Local Growth Deals LEPs to take greater role in EU funding distribution Support LEP capacity Majority of funds notionally allocated to LEP areas –Each LEP will lead the development EUSIF investment strategy –Plan must be strategic, supported by strong evidence base –LEPs must collaborate in order to maximise impact –LEPs must identify local sources of match funding

19 Process for Assessing ESIF Applications

20 Core Delivery Principles ‘What good looks like’
Impact and Scale:  Delivery Readiness:   Added Value  Local Value Quality, Performance and Efficiency:. Strategic Partnerships and Co-ordination of Market Engagement Flexibility and Responsiveness How will calls be assessed? Government will do technical compliance LEP will look at strategic fit, including adherence to our ‘core delivery principles’

21 Find out more… Employment and Skills
/ Business Support, Innovation, Rural / General ESIF / Strategy / /

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