New EU Programme and LCR

Arrangements

Stakeholder Event

3rd September 2013

EU Context

• Regulations covering ERDF, ESF, Rural Development

and EMFF – based around EU 2020

• New Category: Transition regions (incl LCR)

• Partnership agreement (National Govt and EC)

• Programmes start 2014 (but project funding unlikely

before end 2014)

EU Programme 2014-

2020: New Things to

Note• Thematic approach, concentrated on:

Innovation, research, technology dev )

Competitiveness, SMEs )

ICT ) 60%+ ERDF

Transition to Low Carbon Economy (15%) )

Employment and Skills

Social inclusion (20% of ESF)

Rural development

• Intervention rate of 60% for transition regions

• Closer links to Horizon 2020 envisaged

3

UK Context

• Govt asked LEPs to lead on EU Investment Strategy

• LEP led programmes / activities to• focus on local need and opportunity

• reflect and align with national policy and priorities

• LEP and local partners working together (regulatory)

• Local EU Strategies sit within the National Growth and Job strategy Single pot ( April 2015)

• LEPs to produce a Local Growth Plan / Competitive element

• Local Growth Teams to support and ensure compliance

• Supplementary guidance (July 2013)

• Opt-in prospectuses (July 2013)

LCR allocation

• LCR given EU allocation of €221.9m (c. £190m)

• (£112.3m ERDF / £77.7m ESF)

• Roughly 1/3 of amount received in 2007-2013 period

• Government methodology based on 2013 allocations

• extended 2013 amount for a seven year period

• Transition Regions given a 20% uplift

• Penalises LCR “phasing in” status in the current period (because of front loading)

• Equates to €147 per head of population (lowest in NW) and half that awarded to the north East

• 6 “More Developed” regions will receive more than LCR

LCR allocation

Vince Cable:

• ’I recognise that Cornwall, Merseyside and South Yorkshire are the three areas taking a cut in their overall structural funds allocations.

However, in the case of Merseyside and South Yorkshire, they have already been on a tapering annual allocation, caused by their rise in relative income over time.

Their level of annual spending will remain broadly the same as for recent years – so it’s important not to view structural funds in isolation.

• Liverpool and Sheffield City regions have each secured a City Deal, which will bring in over £70 million in public and private investment over the next three years.

They have won close to £20 million from the Growing Places Fund, as well as £170 million from the Regional Growth Fund for Liverpool City Region.

Their four Enterprise Zones will benefit from the additional £100 million recently announced for that specific scheme.’

What UK Government wants

• Collective submissions from 39 LEPs and can come together to create a national ERDF and ESF programme

• A strong emphasis on economic growth (to create jobs)

• international trade (to help balance of trade)

• low carbon / energy (sustainability and climate change agenda)

• Greater involvement of the private sector

• developing local strategy / priorities

• programme delivery (particularly private sector match funding)

• Opportunities for Govt Depts (BIS, DWP etc) to access ERDF and ESF by asking LEPs to “opt-in” to national initiatives

• More investment and less grant

• Increased use of revolving funds,

• encouraging LEPS to use Financial Instruments

• Continued focus on about claw back and misuse of EU funding

• tight control of programme management and project approvals

LCR approach

• A significantly different programme

• Cut our cloth accordingly

• Acts as a catalyst

• Unlocks major schemes

• Need for focus and few projects

• Challenging but realistic in delivery terms

• Remains a significant funding package

• Moving towards a commissioning model

8

LCR approach• Stakeholder events (Apr & Sep) wider buy-in

• Bottom up approach:

• Initial Thematic responses led by Thematic leads

• Distilled into 5 Liverpool City Region Portfolios

• 5 Portfolio drafting workshops (July)

• 5 Portfolio consultation workshops (August)

• Leadership / challenge by EU Sub group and Advisory

Group

• Links to NW structures

• Align to wider EU opportunities such as Territorial

Programmes & Horizon 2020

9

LCR Governance Structures

LCR Board

EU Post 2013 Sub Group

Advisory Partnership

Group

Theme and Portfolio Leads

Core LEP EU Team

EU Post 2013 Sub Group

• Cllr Phil Davies – Chair

• Kath Boullen

• Sir Howard Newby

• Asif Hamid

• Richard Else

• Amanda Lyne

• Carole Hudson

• Alan Welby

Advisory Partnership Group

• Alan Welby – Chair

• Bob Hepworth (LAs)

• Nigel Weatherill (HE)

• Yana Williams (FE)

• Alan Jemmett (EA)/LNP)

• Frank Rogers (Transport)

• Jonathan Jackson (Rural)

• Andy Churchill – (VS)

• Lynn Collins (TU)

• Lesley Martin-Wright (CoC)

• Mark Knowles (Low Carbon Committee)

• John Flamson (Innovation Board)

• Mark Basnett (Business Growth Board)

• Sue Jarvis (ESB)

• Pam Wilsher (VE)

Portfolio approach

• Blue/ Green Economy (Mark Basnett)

• Business Economy (Kath Boullen)

• Innovation Economy (John Flamson)

• Inclusive Economy (Sue Jarvis)

• Place and Connectivity (Bob Hepworth)

13

Portfolio approach

• Reflects LCR opportunities and challenges

• Integrated and focused approach

• Aligned to City Region governance

• Guards against “unpicking”

• Clear LCR narrative to government and

partners

• Based on long established evidence base

• Seamless fit into Local Growth Plan

• Challenge to partners to avoid silos

14

Indicative Budget (Portfolios) in £s

15

Portfolio ERDF ESF Totals

Blue Green 25m 3m 28m

Business 32m 8m 40.8m

Innovation 26.5m 5m 31.5m

Inclusive 3m 61.7m 64.7m

Place & Connectivity 25m - 25m

Total 112.3m 77.7m 190m

Indicative Budget (Blue Green) in £s

16

Blue / Green ERDF ESF Totals

Energy 5m

Supply chain 5m

Infrastructure 5m

Infrastructure (FIs) 10m

Skills 3m

Total 25m 3m 28m

Indicative Budget (Business) in £s

17

Business ERDF ESF Totals

Winning new business 7m

Start up and entrepreneurship 8.8m

Business support, investment

readiness 7m

Finance for business FI 10m

Skills 8m

Total 32m 8m 40.8m

Indicative Budget (Innovation) in £s

18

Innovation ERDF ESF Totals

Infrastructure (grant) 5m

Infrastructure FI 5m

Business start and early growth 3.75m

Finance for business FI 5m

Business growth 6.5m

Higher level skills 5m

Promotion of LCR 1.25m

Total 26.5m 5m 31.5m

Indicative Budget (Inclusive) in £s

19

Inclusive ERDF ESF Totals

Youth and NEETS 30m

Adults into work 20m

Social growth and connectivity 10m

Local Impact Fund FI 3m 1.7m

Total

3m 61.7m 64.7m

Indicative Budget (Place and

Connectivity) in £s

20

Place and Connectivity ERDF ESF Totals

Business infrastructure (gap funding) 6m

Infrastructure FI 9m

Transport Infrastructure 7.5m

Place marketing 2.5m

Total 25m 25m

Financial Instruments

Total: £42 million

• £24m infrastructure / energy

• £15m financial assistance for businesses

• £3m Local Impact Fund

Key issues to consider:

• Access to European Investment Bank match funding

• Jessica (£20m)

• Jeremie (£50m)

• Building on previous experience (North West Fund / MSIF / Chrysalis)

• LCR Independent evaluation (Nov)

• in partnership with EIB

21

Opt-ins

• Opt-in model to allow LEPs and partners to join with national

organisations/programmes

• LEPs commit part of funds to national programme

• In return local areas receive match funding / administrative support

• Emerging agenda / ongoing LCR assessments

• 6th September – North West Meeting

22

Organisation/ Programme Support

GrowthAccelerator SMEs competitiveness

Manufacturing Advisory Service SMEs competitiveness

UK Trade and Investment SMEs competitiveness

European Investment Bank (Social

Housing Financial Instrument)

Low Carbon

Big Lottery Fund Social inclusion & combating poverty

Skills Funding Agency

Timeline (1)

• Stakeholder event – 3rd September

• APG

• LEP Board

• City region Cabinet

• EU sub Board

• Submission to government: Monday 7th October

Timeline (2)

• Government evaluation: Mid October (Clarification

questions back to LEPs)

• National Growth Board formal response: Mid

November

• LEP submit final submission: end January 2014

• National Growth Boards all LEP strategies : end Feb

2014

• Spending starts: mid 2014 (depending on when EC

and UK Govt agree national Operational Programmes)

Next Steps

• Presentation and contact details available on

website www.liverpoollep.org

• Regular e-bulletin of EU Progress

•Future stakeholder event to be scheduled prior to

final January submission

• For more information contact:

• Alan Welby Alan.Welby@liverpoolLEP.org

• Martin Eyres Martin.Eyres@liverpoolLEP.org

• Paul Dickson Paul.Dickson@liverpoolLEP.org

Thanks