LEADER Funding Workshop

Session 1: Overview of LEADER

Frances McIntyreLocal Action Group Manager

Session 1 – Overview of LEADER

• Key Facts about LEADER

• LEADER in Lincolnshire

• Who can Apply/Grants Available

• Example Projects

A detailed Applicant Handbook will be released in October. All workshop participants will be sent a copy.

LEADER - Key Facts LEADER is a delivery method being used to distribute funding from the

Rural Development Programme for England

Rural Development Programme for England(Defra)

Countryside Stewardship £3.1 billion

Growth Programme £177 million

Countryside Productivity£ 140 million

LEADER £138 million

Local Action Groups(LAGS)

Natural EnglandForestry

Commission

Rural Payments

Agency

Local Enterprise

Partnerships

European Agricultural Fund for Rural Development

LEADER - Key Facts

• The term LEADER is derived from a French acronym:

• 80 approved LAG areas in England https://www.gov.uk/rural-development-programme-for-england-leader-funding

• Due to start in October 2015. Runs until the end of 2020.

Liaison Entre Actions de Développement de l'Économie Rurale

Liaison among Actors in Rural Economic Development

LEADER - Key Facts

Aim: To support and grow the rural economy

• Jobs and growth are a key requirement

• No automatic entitlement to a LEADER grant – not a ‘Gift’

• The LAG will be looking for a good return on their investment (The economic benefits/outputs you can deliver)

• LAGs have growth targets that they must achieve

• Competitive process - Projects that demonstrate the highest levels of benefit will be prioritised.

LEADER - Key Facts All applicants must demonstrate how their project will support the local economy, such as

• Creating jobs• Developing a new or existing rural business• Increasing tourism visitors• Improving rural services and communities

• LAGs must use a least 70% of their funding to support projects that create direct growth

• Additionality: LEADER supports projects that otherwise wouldn’t happen, or it enables them to happen faster or on a larger scale.

LEADER - Key Facts • Not for: routine expenditure, standard equipment or

statutory requirements

• Not for: Repairs, like-for-like replacements of existing items or activities that have already started

• Not for: Propping up failing businesses

LEADER in Lincolnshire

www.lincolnshire.gov.uk/funding

£1.42m

£1.28m

£1.75m

£1.53m

Not available in built-up urban areas; Lincoln, Grantham, Boston, Spalding

LAG PrioritiesEach LAG sets its own priorities that reflect the local area and make-up such as;

Each LAG has identified a number of priorities For full list go to www.lincolnshire.gov.uk/funding

Wash FensTo increase investment in agriculture, the food industry and its supply chain

to drive productivity, improve sustainability and reinforce the area's

position as a centre for food excellence.

LAZRealising the Potential of our Environment, Heritage and

Community Assets – to sensitively enhance the key environmental and

heritage strengths of the LAZ

CAZDiversify & Enhance the Coastal Area

for example, by creating and enhancing visitor facilities including

covered facilities

KestevensDevelop Creative & Innovative

Workspace/Enterprise Hubs investment that create opportunities

to share resources, make connections, provide business support & encourage

support clusters

LAG Area

• The project or activity must take place in a LAG area

• Assets must be held in the LAG area

• An organisation located outside the LAG area can only apply if the planned activity is within the LAG area eg a nature reserve, cycle path, visitor centre.

• Grants for activities that cross LAG borders will be apportioned

Grant Rates

Match funding must come from the private sector

In-kind contributions or own labour cannot be used as match funding

Commercial Projects

Grant 40%Private Funds 60%

Non-Profit Making Projects*

Grant 80%

Private Funds 20%

*Where there is some income to off-set costs. Up to 100% where there is no income, eg cycle paths.

How much can we apply for?

• Minimum grant is £2500 (£3,500 in the LAZ )

• Maximum grant €200,000 (£141,302 @ 1/9/15)

• Average grants typically between £2,500 to £40,000.

• Higher grant amounts will be offered in exceptional circumstances, for example where significant outcomes will be generated.

• De Minimis State Aid Rules; Maximum available in any rolling 3 year period = €200,000. Other public funding already received may count toward this.

• The actual grant awarded will always be the lowest amount required for the project to proceed.

Project Size

The smallest commercial project eligible for LEADER is £6,25040% Grant: £2,500 + 60% Match: £3,750 = £6,250

(£8,750 in LAZ LAG)

The smallest non-profit making project eligible for LEADER is £3,125 (where there is some income to off-set costs)

80%: Grant: £2500 + 20% Match = £625 = £3,125 (£4375 in LAZ LAG)

For non-commercial projects where there is no income to off-set costs the smallest project is £2500 of (£3500 in the LAZ LAG).

Eligible CostsPrimarily a capital grants scheme that funds the purchase of physical assets (5 year life-span). Costs could include;

Equipment Machinery Construction work

Intangible investments eg the development of bespoke computer software/technology:

Eligible CostsSome revenue costs are eligible ;

• Professional fees – eg the cost of architects, engineer, consultation fees (restricted to 15% of total project costs and only for costs incurred after grant approved)

• Marketing –the costs of digital design, but not hard copy printing

• Festivals/Events - Equipment hire, Marquee hire, Room/field hire

• Limited salary costs associated with the development of a community or not for profit project:

- In exceptional circumstances only. LAGs will have to seek permission on a case by case basis.

- Must be clearly linked to supporting rural jobs and growth- Would cease as soon as the project was running

Ineligible Costs

Running costs, Reclaimable VAT, Planning fees, Movable fittings, (tables, chairs, beds, small kitchen equipment), landscaping (unless part of making good), Plants/trees

Types of Grant Available

1. Increasing Farm

Productivity2. Supporting

Micro and Small Businesses and

Farm Diversification

3. Boosting Rural Tourism

4.Providing Rural Services

5. Supporting Cultural and

Heritage Activities

6. Increasing Forestry

Productivity

LEADER Priorities

1. Farm Productivity What are the grants for?• Support a wide range of farm investments. • Particularly for businesses that want to invest in

innovative business practices and new technologies to help them become more sustainable and productive.

Who can apply ?Farmers, groups of farmers, processing businesses with less than 250 employees

1. Farm Productivity

2. Support for Rural Business and Farm Diversification

What are the grants for?• To start up a new rural business • To grow an existing rural micro enterprise or small businesses. • This Priority covers most industries and business activities, apart

from agriculture (funded under Priority 1)

Who can apply?• Businesses with fewer than 50 staff and turnover of less than

€10m (circa £7.1m)• Farmers wanting to diversity into non-agricultural activities• People starting a new business

2. Support for Rural Business and Farm Diversification

3. Rural TourismWhat are the grants for?• Developing high quality visitor products and services • Linking tourism providers• Extending the tourism season and • Encouraging visitors to stay longer

Who can apply?• Micro or small businesses (inc. farmers diversifying into tourism) • Community group • Group of rural tourist businesses working together • Local authorities and administrations;• Public-private partnerships;• Non-Governmental organisations (NGOs);

3. Rural Tourism

4. Rural ServicesWhat are the grants for?• Projects that aim to alleviate some of the difficulties faced by

rural communities• Particularly the lack of access to services and the provision of

infrastructure.

Who can apply?• New or existing micro or small businesses;• Rural community organisations;• Public or private entities working in partnership with small and

micro business and rural community groups • Local authorities (in exceptional circumstances, must fall outside

of their statutory requirement to provide rural services)

4. Rural Services

5. Cultural & Heritage Activities

What are the grants for?• Promotion, enhancement and maintenance of cultural heritage

assets and events where this supports growth in the tourism economy and:

• Creates a sense of local identity through raised awareness of their importance; and/or

• Helps protect cultural heritage features against damage and degradation.

Who can apply? • Landowners; • Rural community groups;• Local authorities (in exceptional circumstances, must fall outside

of their statutory requirements for this type of activity)

5. Cultural & Heritage Activities

6. Forestry Productivity Not available in the Wash Fens - For information on forestry activity go to

www.forestry.gov.uk/england

What are the grants for?• To deliver permanent new supply chains (and jobs)• Restore regular management to local woods (with

Management Plans in place) and,• Encourage a greater degree of added value to the timber

output

Who can apply ? • Owners of private forestry holdings or • Small and medium-sized forestry contracting businesses (Up

to 250 employees)

6. Forestry Productivity

Other Funding Business Lincolnshire Growth Hub – Local funding, advice and business support schemes www.businesslincolnshire.com

Gtr. Lincolnshire Local Enterprise Partnership (GLLEP) http://www.greaterlincolnshirelep.co.uk/funding

Open Call: Tourism (Minimum grant £50,000) Closing date: 27/11/15

https://www.gov.uk/european-structural-investment-funds/tourism-call-in-greater-lincolnshire-14rd15to0002

Countryside Stewardship https://www.gov.uk/guidance/countryside-stewardship

Countryside Productivity: https://www.gov.uk/government/collections/countryside-productivity-scheme

Growth Programme:

https://www.gov.uk/government/collections/growth-programme-grants-for-the-rural-economy

Other Funding

LCC Community Facilities Grant

Village halls, community buildings, recreation grounds, playing fields, play areas and facilities for young people.http://www.lincolnshire.gov.uk/residents/community-and-living/community-and-voluntary-sector-support/grants-and-funding/community-facilities-grant-aid

Lincolnshire Funding Portal - Online hub of community grants and funding information

http://www.idoxopen4community.co.uk/lincolnshire/

Any questions?