Presentations by ICF GHK on the European Structural and Investment Funds for the SEMLEP area

Introductions Two presentations A summary of the ESIF strategy for SEMLEP Next steps and how the programme will work Purpose of the presentations To inform To validate To prepare for the programme

A reminder of the process All LEPs were invited to submit an ESIF strategy by government First draft 7 October 2013 Second (final) draft 31 January 2014 All LEPs were given an allocation for the period 2014-20 – SEMLEP allocation worth c. £75.6m ERDF and ESF, and subsequently £4.2m of EAFRD Government offered match funding through opt-ins (MAS, DWP, SFA, GA, UKTI, BIG Lottery, EIB) Assumption of c. 50% match overall including opt-ins, local and private sector match National rather than LEP specific programme. Cross LEP activity encouraged

Presentation One – Summary of the ESIF An Overview of the South East Midlands Economic Asset Base

Strengths and Assets £39bn economy Faster than national employment and housing growth Future growth across SEMLEP, especially MK, Luton and Aylesbury Vale Growth sectors (including logistics, food technology, bio technology, precision engineering) International businesses (including Unilever, GM, Lockheed) Growth of social enterprise Technology and research assets – Cranfield, Silverstone, OU, Millbrook etc. Communications hub – Luton airport, Daventry freight terminal Green networks and cultural assets

Challenges and Market Failure Pockets of deprivation (Corby, Luton, Northampton) Pockets of high levels of youth unemployment Mixed performance in business start up and survival rates Lower than national levels of productivity Variations in high level skills (e.g. 42% Level 4 and above in Bedford, 14.2% in Corby) Digital inclusion issue for low income households Broadband deficit (infrastructure and accessibility)

The SEMPLEP Vision “The South East Midlands aspires to be amongst the most innovative, successful and high performing economies in England by 2020” By 2020 the South East Midlands has the potential to deliver:   111,200 new jobs As a result GVA is estimated to increase by £10.8bn above the current level of  £38.6bn for the area.

The SEMPLEP Vision

Priority 1: Strengthening and exploiting SEMLEP’s innovation and knowledge assets £10.1m ESI fund allocation Priority aims To fully exploit SEMLEP’s knowledge base in Higher Education Institutes and private sector firms by providing the right environment and conditions for business to locate, cluster and innovate through knowledge and technology transfer Priority 1 Programme Activity Areas are: 1.1 SEMLEP Growth and Innovation Programme 1.2 ICT & Digital Exploitation Programme 1.3 Low Carbon and Technology Innovation Support Programme

Priority 2: Stimulating enterprise and enhancing the competitiveness of SMEs in target sectors and markets £19.9m ESI Fund financial allocation Priority aims: To support entrepreneurship, business development, targeted inward investment and fund financial initiatives to help improve competiveness and growth. This will include pre-business start up and start up support provision and embedding national business support products, such as Manufacturing Advisory Service, Growth Accelerator and UKTI Priority 2 Programme Activity Areas are: 2.1 South East Midlands Growth Hub 2.2 SEMLEP Entrepreneurship Programme 2.3 Finance for business programme

Priority 3: Delivering a Low Carbon Economy £6.6m ESI Fund financial allocation Priority aims: To build the market in low carbon environmental goods and services, non domestic sector deployment of low carbon technologies, whole place low carbon solutions and low carbon innovation. The priority also aims to embed low carbon technologies and promote eco-efficiencies across all business growth activities Priority 3 Programme Activity Areas are: 3.1: Low Carbon Resource & Resource Energy Efficiency Programme 3.2: Social Housing Retrofit Programme

Priority 4: Infrastructure for Growth £6.5m ESI Fund financial allocation Priority aims: To support SEMLEPs aspirations for sustainable economic growth through developing infrastructure in particular digital infrastructure (e.g. supporting roll-out of broadband), fit for purpose business premises and sites, and continued improvements to the natural environment Priority 4 Programme Activity Areas are: 4.1: Buildings for Growth Programme 4.2: Enhancing Local Infrastructure & Environments

Priority 5: Developing Skilled and Adaptable Workforce £26.6m ESI Fund financial allocation Priority aims: To support activities to develop high-level and mid-tier technical skills to fulfil needs of key sector SMEs; and support projects to train people who do not have basic skills and qualifications needed in the workplace, as well as raise the skill levels of those currently low skilled Priority 5 Programme Activity Areas are: 5.1: High Level Skills for Key Sectors 5.2: Basic Skills and Employment Programme

Priority 6: Tackling Social and Economic Exclusion £10m ESI Fund financial allocation Priority aims: To ensure that economic successes and growth opportunities are shared and that economic and social exclusion is tackled. The priority, in conjunction with other priorities , is focused on creating employment which is accessible to disadvantaged areas and to help residents in these areas access economic opportunities as employees or in self-employment. Priority 6 Programme Activity Areas are: 6.1: SEMLEP Social Inclusion Programme 6.2: SEMPLEP Community Led Economic Development Programme

Rural Project Opportunities Business opportunities around renewable energy and traditional building technologies High quality food products for specialist markets Tourism projects (attractions, bed and breakfast accommodation) Creation of micro businesses Rural heritage and conservation Small scale training schemes in rural skills

Key Outputs 4200 enterprises supported (1000 new enterprises) 1500 new jobs created 560 enterprises developing new products (new to the firm) 395 enterprises involved in collaborating with research institutions 365 enterprises achieving business resource efficiency 37000 ESF participants (13000 unemployed, 5500 inactive, 11000 employed, 7500 15-24) Output calculation is work in progress and does not currently include GA, UKTI or MAS opt-ins

Current Match Funding Assumptions Private sector - £4.1m ERDF: £4.9m ESF Government opt-ins - £11.75m ERDF: £20.9m ESF Other public national - £1.6m ERDF: £0.6m ESF Civil society – £125k ERDF: £1.7m ESF Public local - £20.2m ERDF: £9.7m ESF