Key Headlines on European Funding 28th November 2016 John Hacking & Andy Churchill First slide

ESIF European Structural Investment Funds These are for Smart, Sustainable and Inclusive Growth Two main Funds for GM are ERDF and ESF European Social Fund Starting with people Revenue fund, human resources, training and job subsidy European Regional Development Fund Starting with enterprise Capital & Revenue, buildings, loans, training

National Programmes delivered at Local Level National ESF Operational Programme National ERDF Operational Programme National Programme Monitoring Committee (Growth Board) Strategies at LEP level (39 sub-committees) LEP level ESIF Committee Must have Third Sector involvement at all stages of the Programme Regulations UK Partnership Agreement

2014-20 Seven year programmes Late start first calls March 2015 first projects agreed March 2016 N+3 Final Claims to Europe before end of 2023 Further changes and delays Development of devolution Pause after referendum vote More money

Managing Authority Runs the Operational Programme Agrees Projects Makes claims to the European Commission

Devolution Local LEP level ESIF committee is advisory only Run by DCLG on behalf of the two Managing Authorities DCLG is MA for ERDF and DWP is MA for ESF SUD (10% of ERDF for Sustainable Urban Development) All eight core cities Co-Financing Organisation GM is first non-national body Intermediate Body (some powers devolved from MA)

Bidding Direct Bidding for all of ERDF Direct Bidding for some of English ERDF Co-Financing for some of English ESF Skills Funding Agency DWP NOMS Big Lottery Fund and now, G Manchester (through Trafford)

Co-Financing MoU Committed Unallocated BLF 173 156 17 NOMS 131 DWP 119 114 5 SFA 725 520 205

English ESF Co-financing Large (national) body Identifies its own match Allocated an amount of ESF Carries out its own bidding rounds to commit the ESF and deliver outputs and results BLF allocates ESF and Match. SFA/DWP/NOMS just allocate ESF

Skills Funding Agency It will lose its matchable funds soon, because of devolution So it tried to squash 3 years funding into two (to March 2018) This didn’t work Only £520m (of £725m) was allocated through calls It will allocate some more, but cannot spend it all (extensions to July 2018, more money to existing projects) So more money for devo from 2018

Referendum vote Prime Minister says will trigger Article 50 at end of March 2017 We then have two years to agree, or an agreement is imposed So we would leave by March 2019 or Later Chancellor’s statement October 3rd said all projects signed before we leave the EU will be guaranteed funding Most projects are three years, so that takes us to 2022 (for the 2014-20 programme) So we have funding for about the next six years

Autumn Statement Chancellor’s statement of 3rd October confirmed at Autumn Statement Quoted in Northern Powerhouse Strategy Guarantee for projects signed before we leave the EU

More money across England Nationally, £205m not committed by SFA Some could come to GM Devaluation of the pound The total euros for England from Europe meant about £3bn for both ESF and ERDF So even if say only a ten per cent devaluation, that gives us about another £300m ESF and £300m ERDF more than we had the day before the vote The Treasury will issue a guide rate once the position has stabilised

Simplification Programmes have become much too bureaucratic Focus on recording money spent and checking eligibility So little concern for what is being delivered (We halved the intended jobs in the last programme) European Commission is determined to change this Simplification Agenda High Level Group ESF Platform on Simplification

Simplification - progress For ESF, use 15% of staff costs to cover indirect costs Or use 40% of staff costs to cover all non-staff costs No receipts needed for non-staff costs Less paperwork, quicker claims, better audits, less errors More flexibility to run projects Described in English ESF Guidance (April 2016) ESF Guidance on State Aids - Guidance November 2016

Simplification - 2017 Dramatic simplifications to Technical Assistance Standard Unit Costs being introduced (EU wide)

Devo and GM Co-Financing Organisation Agreed April 2016 First non-national Co-Financer Devolved Education and Skills Budget Match for ESF

ESF in GM P1 (unemployed) £81.85m Total available £30.0m Awarded through SFA and BLF £32.7m CFO proposal (Working Well, and Work and Health) £19.1 m Still to be allocated (2018 onwards?) P2 (employed) £64.1m Total available £10.9m 2 SFA contracts awarded £17.4m Employer engagement call under way £35.0m Future calls (likely higher skills P3 and above)

ERDF in GM - next steps Two calls imminent- Start Up support & Science Commercialisation Much of ERDF through Financial Instruments (loans). British Business Bank being approved, will appoint local Fund Managers P3 Enterprise Previous bid cancelled (New Enterprise Allowance match not allowed), so new call P4 Low Carbon Economy For calls being worked up, including Energy Efficiency in Public Buildings small scale low carbon.renewables in community centres etc, perhaps with loan

Adult Education Budget AEB is SFA funding (not ESF, Learner Loans or Apprenticeships) Will be devolved to 30 local commissioning authorities SFA will cease all Independent Training Providers contracts in 2017 This includes Third Sector Contracts Contracts will all then have to be re-tendered This does not apply to Colleges This has serious implications for Third Sector providers including consortia

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