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Welcome and Introductions
Norman Jennings, Skills and
Employment Manager,
Hertfordshire LEP
European Structural and
Investment Funds ERDF
Programme Stakeholder Event
Overview of European Structural and
Investment Funds (ESIF) and
Hertfordshire Investment Strategy/Local
Implementation Plan
Andy Luff – ACL European
Presentation Structure
EU Background and Context
England EU Growth Programme
Hertfordshire ESIF Strategy
Role of the LEP
ESIF Themes and Allocation Requirements
Potential / Indicative Activities
Financial Engineering Instruments
Developing pipeline projects – key considerations
Opportunity, challenge and support
Timetable
Background and Context
Structural and Investment Funds 2014-20 Aligned to
the EU 2020 Strategy SMART • strengthening research, technological development and innovation; • enhancing access to, and use and quality of, information & communication technologies; • enhancing the competitiveness of SMEs, the agricultural sector (EAFRD) and the fisheries /
aquaculture sector (EMFF);
SUSTAINABLE • supporting the shift towards a low-carbon economy in all sectors; • promoting climate change adaptation, risk prevention and management; • protecting the environment and promoting resource efficiency; • promoting sustainable transport and removing bottlenecks in key network infrastructures;
INCLUSIVE • promoting employment and supporting labour mobility; • promoting social inclusion and combating poverty; • investing in education, skills and lifelong learning; • enhancing institutional capacity and an efficient public administration
Background and Context
England EU Growth Programme
Total allocation for England € 6.2bn (£5.2bn)
ERDF and ESF plus £177m EAFRD (5%)
EU Growth Programme 2014-20
Combines European Regional Development
Fund (ERDF), European Social Fund (ESF)
and part of Rural Development Programme
(EAFRD)
National Programme (England)
Key role for LEP Area ESIF Partnerships – 39
LEP EU Investment Strategies
ERDF ESF
Structural Funds
EMFF Rural
Development
(EAFRD) SI Funds Growth
Programme
Partnership Agreement
(England)
Background and Context
England EU Growth Programme
Governance and Structure
EU Growth Programme
Board (Programme
Monitoring Committee
National Sub-Committees
(Thematic/operational)
LEP Area ESIF Committees
(39)
Relationship between ESIF sub-committee and LEP Board and Programme
Boards - Consultative
EAFRD
Programme
Monitoring
Committee
Not a
formal sub
committee
for EAFRD
Hertfordshire ‘Notional’ ESIF Allocation
€m 2014 2015 2016 2017 2018 2019 2020 Total
Basic Allocation 8.7 8.8 9.0 9.2 9.4 9.6 9.8 64.5
Performance Reserve 2.5 2.6 5.1
Total Allocation 8.7 8.8 9.0 9.2 9.4 12.1 12.4 69.6
Exchange Rate 0.8562 1.167951 Page 48 LEP Supplementary Guidance
• Revised to £56.4m
• Expect further revision due to FOREX
• Further allocation from European Agricultural Fund for Rural
Development (EAFRD) £1.5m
• Other EU funds outside this allocation - e.g. Horizon 2020,
Territorial Cooperation, LIFE+
• 6% of allocation subject to ‘performance reserve’ assessed
2018 – targets and process awaited
EU SIF Themes and Allocation
Requirements
Core ESIF Themes ERDF (£28.2m) More developed regions Strengthening Research, Technological Development & Innovation
At least 80% ERDF must be spent on these 4 themes of which at least 20% must be spent on ‘low carbon’.
Enhancing Access to, and use and quality of, Information and Communication Technologies Enhancing the Competitiveness of SMEs
Supporting the Shift towards a Low Carbon Economy in All Sectors (£5.64m) Climate change adaptation Lower priority
Environmental protection Lower priority
Sustainable transport Not eligible spend in MD areas
Core ESIF Themes ESF (£28.2m) More developed regions Promoting Employment and Supporting Labour Mobility
At least 80% ESF must be spent on up to 4 sub-priorities within these themes. Promoting Social Inclusion and Combating Poverty (at
least 20% value of ESF) (£5.64m) Investing in Education, Skills and Lifelong Learning
ESIF - Role of Hertfordshire LEP
Lead on development of ESIF Investment
Strategy and Local Implementation Plan in
consultation with stakeholders in the area
Show alignment with LEP priorities and
Growth Plan/Strategic Economic Plan
Discuss with other LEPs potential
opportunities for collaboration and wider scale
projects/calls
Support/encourage the development of results
focussed and EU compliant proposals
ESIF Investment Strategy Components
Submitted 31st January 2014 after approval by
ESIF Committee and LEP Board
Alignment with Hertfordshire Growth Plan & SEP
Evidence based to support local priorities
Set out priorities for investment ESIF
Distribution of funds across thematic objectives
Proposals for ‘opt-ins’ (SFA, DWP & Big Lottery)
Proposed activities (not projects)
Likely match funding sources
Outputs (but not results)
Delivery arrangements
Governance (LEP Area ESIF Committee)
Hertfordshire ESIF Themes – ERDF
Allocations (Revised March 2015)
ERDF Theme ESIF
Allocation
Match
Funding
Total Value
TO1 - Strengthening Research,
Technological Development &
Innovation (30%)
£8.97m £8.97m £17.94m
TO3 - Enhancing the
Competitiveness of SMEs
(50%)
£14.95m £14.95m £29.9m
TO4 - Supporting the Shift
towards a Low Carbon
Economy in All Sectors (20%)
£5.64m £5.64m £11.28m
Totals £28.2m £28.2m £56.4m
European Regional Development Fund (ERDF) initial allocations (subject
to revision)
Routes into the Programme
European Regional Development Fund (ERDF) -
Hertfordshire
Project proposals submitted in response to
‘open calls’
• Issued by Managing Authority
• Consultation with LEP ESIF Committee
• Local context and priorities reflected
• No ERDF ‘Opt-Ins’
• Two stage process – Outline and Full
Potential/Indicative Activities
Innovation/Knowledge Transfer (ERDF)
Building collaborative research between
enterprises and research institutions
Supporting businesses including social
enterprises to commercialise Research &
Development (new products to market)
Supporting SMEs in networks of innovation
Very limited capital for incubation space
X NOT pure research – must have attributable
economic outcomes
Potential/Indicative Activities
SME Competitiveness (ERDF)
Build the growth capability of SMEs
Encourage and support more SMEs to enter
new domestic and international markets
To increase the provision of finance so that
business can access finance at each stage of
business development
Strengthen local and national supply chains
Very limited capital for incubation, grow on
space where there is market failure (possibly
refurbishment)
Potential/Indicative Activities
Shift towards a Low Carbon Economy (ERDF)
Build the market in low carbon environmental
technologies, goods and services
Promoting energy efficiency and renewable
energy use in SMEs
Non domestic low carbon technologies and
energy efficiency
Whole place low carbon solutions and
decentralised energy measures
Innovation and adoption of low carbon
technologies
Delivery Models
Grant Distribution
ERDF funding based on non-repayable grant @ up
to 50% intervention rate
Financial Instruments (FIs)
Possible equity, loan or mixed (mezzanine) funds:
Access to finance by SMEs
Not included in planned bidding rounds. Requires
ex-ante assessment
Developing Pipeline Projects
Key Considerations
• Match Funding – 50% public/private. Ideally cash
but can be forms of ‘in-kind’ such as salaried staff
time
• Strategic fit – Both with local strategies/priorities
and National Operational Programme
• Demand/need and market failure – rationale for
intervention
• Value for money – cost per output/result
• Simplified cost options (SCOs) – useful for
indirect costs (overheads)
Opportunity and Challenge!
Figures issued following FOI request:
Source: Cambridge News 3rd January 2015
Support
Hertfordshire ERDF Technical Assistance
Subject to approval (Outline Application
submitted)
Project pipeline development
Full-time ERDF Facilitator post
Additional support from LEP Officers and
Consultancy
Publicity and awareness raising
MA guidance via https://www.gov.uk/european-
structural-investment-funds
ERDF Timetable – A Few Key Dates
• March 2015 – May 2015 – Initial calls (PA1 –
PA3)
• July 2015 – Programme launch – First round of
regular calls
• July 2015 – Herts ESIF Committee
• August 2015 – Full applications invited following
initial call;
• October 2015 – Revised EU Structural and
Investment Fund Strategy to be submitted
• October 2015 – Second regular bidding round
launched
Contacts
Hertfordshire LEP
Norman Jennings
T: +44 (0) 1707 358745
M: +44 (0) 7717 787775
ACL European
Andy Luff
T: +44 (0) 1223 968878
M: + 44 (0) 7825 827210
Hertfordshire Local Enterprise
Partnership
ERDF Stakeholder Launch
30th June 2015
Paul Witcombe
Enterprise and Innovation Manager
Email: [email protected]
Hertfordshire’s Strategic Context
Economic output per head 14% above UK (down from +30% in
2003)
High Employment rate (80%)
Low levels of Unemployment (<5%)
Highly skilled workforce: >50% level 4 (i.e. degree & equivalent)
High Levels of outward commuting
Moderate levels of inward investment
Lack of affordable housing premises and high quality commercial
High business start-up rates: Lots of micro businesses but
sluggish movement through the value chain.
Our Strategic Economic Plan
Priorities
1. Global Excellence in Science and Technology
– Biosciences
– Film and Media
– Advanced engineering
2. Harnessing our Relations with London and elsewhere
– Investing in our Transport Corridors: A1M; M25/M1; A10/M11
3. Reinvigorating our places
– Regenerating our new towns: Stevenage/Watford/Hemel/
Hatfield
4. Foundations for Growth
– Developing a skills and business support package for Herts
SMEs
Hertfordshire’s Business Population
• Large business base...
– Local Units registered in Hertfordshire in 2014:
• 57,665 Private Sector
• 1,310 Public Sector
• 58,975 Total Units registered
• Dominated by SMEs...
– Number of registered SMEs: • 57,460 (99.6%) SMEs (0 to 250 employees)
• 205 (0.4%) Large firms (250+ employees)
Understanding the business
base (1)...
• Legal structures registered:
– 44,215 incorporated companies
– 11,450 Sole Traders and Partnerships
– 2,000 Not for Profit/mutual associations
– 1,010 Local Authority
– 300 Central Government and other public
corporations
Understanding the business
base (2)... • Size of the Private Sector SME base:
– 57,460 (99.6%) SMEs (0 to 250 employees)
– 205 (0.4%) Large firms (250+ employees)
SME employment Size Band Ent Units %
Micro (0 to 9) 50,230 85.9
Small (10 to 49) 6,090 11.3
Medium (50 to 249) 1,140 2.4
Large (250+) 205 0.4
Total 57,665 -
Understanding the business base
(3)... • SMEs account for half of all jobs created in
Hertfordshire
• Nearly ¾ of SMEs are sole traders and
partnerships
• 43% of SMEs have turnover below £100k
• 2% of SMEs have a turnover in excess of
£5m and employ between 50 & 249
people
Influencing factors
• Less than 10% start-ups go on to celebrate a 10th birthday; and
• The majority remain small in both employment and turnover terms; but
• A very small percentage go on to be prolific wealth and job creators...
• Our priorities are to support SMEs with high growth potential and to improve the sustainability of start-ups
•Innovation; research and
development
•Support for small and
medium-sized businesses
•Towards a Low Carbon
economy
•Skills, employment and
social inclusion
LEP EUSIF Priorities
http://www.hertfordshirelep.com/Our-
EU-Strategy.aspx
LEP EUSIF Priorities
Innovation; R&D Activities
• Promoting the generation and sharing of ideas through Knowledge Exchange/collaboration
• Encouraging the conversion of ideas into novel products and processes
• Facilitating the commercialisation of ideas
Required Outputs
• number of enterprises receiving support (only where this is additional to other outputs)
• number of enterprises cooperating with research entities
• number of enterprises supported to introduce new to the market products
• number of enterprises supported to introduce new to the firm products
Support for SME growth
Required Outputs • number of enterprises
receiving support
• number of new enterprises supported
• employment increase in supported enterprises
• number of enterprises supported to introduce new to the market products
• number of enterprises supported to introduce new to the firm products
• Coach/mentor existing SMEs to
develop the capability to grow
• Help for start-ups to become
sustainable
• Deliver Access to Finance to raise
productivity and boost SME
capacity
• Support Investor readiness and the
internationalisation of SME
• Optimise added value business
support mechanisms
LEP EUSIF Priorities
Towards a Low Carbon Economy
• Support for SMEs to deploy local
carbon solutions and help to
diversify technologies from one
sector to another
• Help SMEs to develop, design
and manufacture materials,
goods and services with
embedded low carbon
technologies.
• Support business to engage in
knowledge transfer with HEIs
and FEIs to encourage
commercialisation of Low
Carbon technologies.
•
Required Outputs • enterprises – number supported
• enterprises supported – resource efficiency
• employment increase
• private investment
• R&D – enterprises co-operating with research institutions enterprises supported to introduce new to market or new to firm products/services
• energy/climate change – estimated GHG reduction
·
LEP EUSIF Priorities
How ERDF Business Support fits into the wider
SME growth package
Do’s and Don’ts
• Do’s
– Be innovative
– Be collaborative
– Be ambitious
– Be aligned to LEP priorities
• Don’ts
– Be a copycat
– Be too spatially focused
– Be too small in impact
Hertfordshire Local Enterprise
Partnership
Paul Witcombe
Enterprise and Innovation Manager Email:
Tel: 07500 882000
Emily Wright
East of England Growth Delivery Team
Department for Communities and Local Government
ERDF – Applications and Assessments
20XX
ERDF Applications and Assessments
LOGASNet
• Temporary System
• NOT being used for the next round of calls (early August)
• NOT being used for full applications from previous calls
• Replaced later this year by a bespoke system - eclaims
ERDF Applications and Assessments
Applying for Funding
• Read the instructions in the call for dates, application route etc.
• Use these documents to inform your application
– Call Specification
– Operational Programme
– Selection Criteria
– Eligibility Rules
– ERDF Handbook
– Application form guidance
• All available on .gov
ERDF Applications and Assessments
Top Tips
• Read the questions on the application form and use the guidance
• Think about how your project fits with the Call
• Specification/Operational Programme/National Policy/LEP ESIF
Strategy
• Be specific
• Be concise
• Limit the use of ‘technical jargon’
ERDF Applications and
Assessments
Any questions?
Refreshment Break
Themed Workshops
• Low Carbon
• SME Competiveness
• Innovation
Feedback and Round Up
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