D2N2 LEP: European Structural and Investment Funds 2014-2020 Richard Kirkland ESIF Coordinator Introduce self, role, Define ESIF Purpose – few words about where D2N2 is with its ESIF work, the next steps and particularly the D2N2 ESIF Local Implementation Plan consultation document that you have in your papers.

Purpose of the Presentation To give an overview of the ESIF Programme in D2N2 To give an overview of the ESIF application process To explain the governance and partnership arrangements involved in managing and delivering the programme To explain the ‘route to market’ for projects To give an opportunity to seek further clarification and network

Basics for the current PA5 and 6 calls Minimum project value £1 million Intervention rate is 50% - £500,000 Call closes Friday 27 May Applications need to clearly demonstrate how activity meets PA requirement contributes to delivery outputs Meets local need as set out in the D2N2 ESIF strategy

ESIF in D2N2 A local ESIF 2014-2020 strategy for; £98m ERDF (European Regional Development Fund): Supporting business, particularly SMEs £98m ESF (European Social Fund) Supporting people with employment and skills £5.3m EAFRD (European Agricultural Fund for Rural Development) Supporting economic growth in rural areas Bring partners together to oversee’ implementation and spend through its ESIF Programme Board So, what are European Structural and Investment Funds, what are they worth in our area and what is our role as a LEP. In 2013, Government asked each of the 39 LEPs to draw up a six year strategy for spending a notional allocation of ESIF funds. The D2N2 allocation was one of the largest in the country as was made up of Making a total of £244m Euros. The strategy has been through 3 iterations between October 2013 and June 2014. It is a strategy for the whole LEP area. However, we now need to very much need to move towards and focus on implementation. Having led the preparation of the Strategy the ongoing role of the LEP is to bring a range of partners together to advise on its effective implementation. Put a strategy together then Advise the Managing Authority which bids fit with that strategy The ‘ESIF’ Strategy is provides ‘fuel in the tank’ to help deliver our strategic economic plan, Key differences between the LGF and ESIF is that whilst LGF funds will be devolved to an ‘accountable body’ in the D2N2 area, the ESIF funds will be held by Government and our role will be give endorsement to the projects that we will wish to see funded.

D2N2 ERD Funding by Priority Axis PA1 Innovation - £18.2m PA2 ICT - £12.3m PA3 – SME competitiveness - £34.8m PA4 – Low Carbon - £22.6m PA5 – Climate change - £4.9m PA6 – Environment / Resource efficiency - £4.7m Nationally low take up for PA4 and PA6 Issues around clarity of eligibility and quality of applications submitted

What will ESIF buy in D2N2 ESIF has specific outputs and outcomes: D2N2 have set the following broad targets for the programme: 5000 businesses receiving support – e.g. ICT, low carbon, SME competitiveness, innovation 400 new enterprises supported 15,000 people supported to find employment 8,000 people supported in relation to social inclusion 2,500 businesses improving skill levels

D2N2 Targets and Progress Targets which must be met within this programme N+3 targets measured annually from 2018 across the whole programme Performance target financial – measured in 2018 and 2023 across programme and by PA level Performance targets non financial – measured in 2018 and 2023 across programme and by PA level

D2N2 Key Challenges Huge demand for PA3 in D2N2 and nationally General lack of match funding at required levels for this programme Ensuring delivery against performance targets with the first milestone in 2018 Changes to exchange rate Pressure therefore in developing high quality proposals that meet these challenges

Key issues from PA4 call Minimum £1m projects required Finance and nature of match i.e. what is eligible. State aid rules and interpretation SME inertia – cant see ROI Ineligible activity e.g. retrofit Lack of alignment with D2N2 ESIF strategy and Core delivery principles

PA5 Climate Change Local Priorities Focus on priority area - Lower Derwent Significant flood risk area to businesses and residencies Added value – complementing and enhancing current planned flood management programmes e.g. helping them progress more quickly

PA5 Climate Change Actions and Outputs Indicative Actions Fluvial risk management e.g. Surface water run off / drainage Output Indicators C23 – surface of habitats supported to attain better conservation status P6 – businesses and properties with reduced flood risk

PA6f Resource Efficiency Priorities Support and advice to businesses to improve resource efficiency and improve competitiveness Support or businesses in adaption of innovative technologies (includes water and waste recycling and recovery) Piloting and demonstrating innovative technologies to promote resource efficiency

PA6f Key challenges SME inertia Uncertainties over benefits of adopting efficiency measures Decoupling economic growth from increasing resource use Links to long term competitiveness Knowing when to invest and what in

D2N2 ESIF Role Localism Lead role for LEPs – 7 year ESIF allocations Bring local partners together to ‘oversee’ implementation – D2N2 ESIF Committee Develop and agree local ESIF strategy and Implementation Plan with partners Agree ‘best’ projects with UK Government Monitor project delivery against strategy and programme priorities Local programmes which are best fit for D2N2 No Stone Unturned’ published October 2012 Government response March 2013 – 81 out of 89 recommendations accepted, 5 rejected, 3 in SR Increasing Whitehall asks of / offers to LEPs - and increasing focus on their performance Single Local Growth Fund from 2015 LEPs to develop multi year strategic plans Funding to be allocated though Local Growth Deals LEPs to take greater role in EU funding distribution Support LEP capacity Majority of funds notionally allocated to LEP areas –Each LEP will lead the development EUSIF investment strategy –Plan must be strategic, supported by strong evidence base –LEPs must collaborate in order to maximise impact –LEPs must identify local sources of match funding

Core Delivery Principles ‘What good looks like’ Impact and Scale:  Delivery Readiness:   Added Value  Local Value Quality, Performance and Efficiency:. Strategic Partnerships and Co-ordination of Market Engagement Flexibility and Responsiveness How will calls be assessed? Government will do technical compliance LEP will look at strategic fit, including adherence to our ‘core delivery principles’

D2N2 ERDF Priorities 8 Priority Sectors – Actions Plans for Low Carbon, Construction, Visitor Economy, Food & Drink Manufacturing, Life Sciences, Transport Equipment Manufacturing, Transport & Logistics, Creative Industries D2N2 Growth Hub www.d2n2growthhub.co.uk/ The EU regional policy is financed by three main funds, the European Regional Development Fund (ERDF), the European Social Fund (ESF), both referred to as “Structural Funds” and the Cohesion Fund (CF). These funds are based on the principles of co-financing and shared management. EU financial support always runs alongside national public or private financing. Depending on a number of socioeconomic factors, the co-financing may vary between 50% and 85% of the total cost of interventions. The guidelines for ERDF and ESF actions are designed at European level, whereas implementation on the ground is managed by the relevant national or regional authorities in each Member State.

Growth Hub All roads lead to the Growth Hub!! http://www.d2n2growthhub.co.uk/ Call 0333 006 9178 Email : info@d2n2growthhub.co.uk

European Structural & Investment Fund 2014-20 Open Route ERDF / ESF Operational Programmes ESIF Strategies (set out local strategic priorities) European Structural & Investment Fund 2014-20 Open Route Inception to Funding Agreement (excluding Opt-Ins, Fis, SUDS) Applicant Outline Application against Call Specification Full Application Funding Agreement Managing Authority Publish Call Assess Outline (Gateway & Core Selection Criteria) Full Technical Appraisal (Core Selection Criteria) Selection into Programme Local Implementation Plan (Scope and Timing of Calls Call Specification Promote and Publicise Call Discuss and endorse selection Assess Application against ESIF, call specification and Prioritise Assess Full application and review technical appraisal against ESIF and prioritise LEP ESIF Programme Board

Process for ESIF Applications

Questions and Contact details Richard Kirkland ESIF Co-ordinator D2N2 Local Enterprise Partnership Email) richard.kirkland@d2n2lep.org  Mobile)  07867178967