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EU Funding 2014-20
Andrew PritchardDirector of Policy & Infrastructure
Introduction
Why are we here? Localisation of EU Funding Emerging UK Priorities & Outcomes The role of LEPs Timescales
Why are we here?
One of 6 events to help local organisations prepare for the next round of EU funding 2014-19
Part of 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
Localisation of EU funding
Establishment of a national ‘EU Growth Programme’
LEPs to develop EU investment strategies Each LEP to be given a ‘notional
allocation’ of EU funding to prioritise Payments to be made centrally Notional allocations will be reviewed
against performance from 2017 onwards
GLLEP
EU National Allocation = €133.5 million UK Local Growth Fund Allocation = tbc
Emerging UK Priorities
•Innovation•SME Competitiveness•ICT 45% + of ERDF
•Employment•Skills•Social Inclusion 70% + of ESF
•Climate Change•Environment•Sustainable Transport No Minimum spend
•Low Carbon Economy 15% + of ERDF
Also…
Minimum 20% of combined ESF/ERDF on ‘social inclusion’
Gender equality, equal opportunities & non-discrimination
Sustainable development
Key Outcomes
“It’s the economy, stupid”
More Jobs Less Worklessness
The Role of LEPs
To develop a local EU Investment Strategy To prioritise projects against a notional
allocation of EU funds To maximise the impact of EU investment
in their areas To work with other LEPs to achieve
economies of scale wherever possible
Timescales
September 2013: Draft LEP EU Investment Strategies
January 2014: finalise strategies
March 2014: new EU Programme starts
2017 – first review of notional allocations
Your mission today…
To think about how best EU funding could be used to address market failures.
To highlight areas or issues where wider collaboration might be helpful.
To ask if you do not understand.
East Midlands PA3 ProjectSocio-Economic Evidence – the future of European
Funds in Greater Lincolnshire1st July, 2013
Chris LawtonNottingham Business School
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.
Contains Ordnance Survey data © Crown copyright and database right, 2013.
Local Enterprise Partnerships within or overlapping the East Midlands Region
Chart 1: Headline GVA per head indices (UK=100) NUTS2, 2011
Economic Context
Source: ONS Crown Copyright, 2012. ‘Regional Gross Value Added, 2011’.
Economic Context
Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2008 and January-December 2012. From NOMIS [accessed 24th June, 2013].
Chart 2:Employment rate (% working age residents), 2012
• 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
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
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.
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.’
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’.
EU Thematic Objective: InnovationChart 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 [17th June, 2013] and analysed under Chancellor’s Notice Ref NTCBRES11-P0537.
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 [17th June, 2013] and analysed under Chancellor’s Notice Ref NTCBRES11-P0537. Contains Ordnance Survey data © Crown copyright and database right, 2013.
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].
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 17th June, 2013].Contains Ordnance Survey data © Crown copyright and database right, 2013.
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 14th June, 2013].
Employment, Social Inclusion and Skills: Resident Adults Qualified to a Level 4 (first degree) and above (%), 2012
Source: ONS Crown Copyright, 2012. ‘Annual Population Survey’, January-December 2012. From NOMIS [accessed 17th June, 2013].Contains Ordnance Survey data © Crown copyright and database right, 2013.
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
Common Issues: Greater Lincolnshire Local Enterprise Partnership
SME Competitiveness Innovation Employment, Social Inclusion and Skills
Leicester & Leicestershire, SEM and NEP – pockets of high business birth rates (but note higher death rates in Greater Lincolnshire)
Construction – important employer across the East Midlands
D2N2 – High-tech manufacturing in Lincoln: investigate common strengths and supply chain relationships with D2N2 (including Low Carbon/ links with energy sector)
Leicester & Leicestershire and GCGP – Food & Drink
Sheffield City Region, GCGP and D2N2 – significantly increasing unemployment rates in more isolated rural areas. Persistently higher than average unemployment in urban centres such as Lincoln and Grimsby
GCGP – coastal concentration of very low skill levels, especially Boston and Fenland districts
Greater Lincolnshire LEP
Emerging priorities
Background
• Role: lobby, support, deliver• Support and commissioning role for SIs• Board members want focused approach• Infrastructure and catalyst projects• Activity based on our competitive advantage
Progress
• Invest To Grow business loan fund• Regional Growth Fund• Growth Ambitions 2013 document• Preparation to growth plan• Business/stakeholder engagement
Beware
• Strategy-itis• Mission creep• Lack of detail• Direct economic outputs v catalyst projects• Regulations and the private sector
Vision to 2030
Summary
• Strong opportunities to match fund• Emphasis on sectors and business• Sense of place likely to emerge• Two “asks” of government on SIs: • Infrastructure and catalyst projects• Business-friendly approach to applicants
Experience from current programmes
The NE GroupSpencer PrewettChief Executive
Predominantly ERDF 20,000 SMEs Supported 250 New Business Start Ups 1,000 Jobs Created 2,500+ Individuals Assisted to Employment 400 Grants Issued 800 Business Increasing ICT Usage
Skills development in SMEs missing Established a Training Division Developed training partnerships Established Social Media Network Organisation Needs Analysis Identification of Key Worker Targeted training
Flexible approach Business responsive service Individual responsive service Linking needs of both Enabled growth of both Continuity and sustainability 180 SMEs engaged 170 Individuals trained
Rural Development 1st July 2013
Coastal Action Zone
Local Action Group www.coastal-rdpe.co.uk
CAZ RDPE Programme 2007 -2013
The creation of a quality coastal environment
Aims
Linking community and landscape on the Lincolnshire coast
to realise the natural assets of the area,
without compromising sustainable development principles.
Issues
Seasonality Poor Economic Performance Under Achievement Landscape
Five key objectives with priorities
Productive coastal landscapes - Farm Diversification
Enhancing coastal competitiveness - Microenterprise Development
A quality coastal destination - Tourism
Cherishing coastal capital - Rural heritage (Natural & Cultural)
Building coastal capacity - Training and Information
Cross cutting themes - Innovation and Sustainability
SuccessesIndividual projects delivered more than one objective and sustainability
- Increased quality self catering cottages, improving farm viability and micro-enterprises, creating wildlife habitat
- Enhancing and improving the landscape and rural heritage, career development
- Building local community capacity and contributing to the area and its economy
The projects supported were robust as they could be
Sustainability
Networking and co-operation
- Engagement with main business support prorammes to strengthen projects
- Local involvement with initiatives and organisations
- Developing Partnership working going into the new programme period
Lessons learnt
Use local knowledge and experience
Be realistic with priorities
Consider a ‘tool kit’ of delivery mechanisms
Be proactive with partnership working
Be innovative