Helping to shape EU Structural Funds North East Social Enterprise Partnership Rory Sherwood-Parkin, Tees Valley Unlimited

Topics 1.Who are Tees Valley Unlimited? 2.The Tees Valley economy 3.Key Challenges 4.Positive News 5.Major Opportunities 6.EU Funding Smart Specialisation 8.LEP Priorities 9.Timetable

1. Who are Tees Valley Unlimited? Local Enterprise Partnership (LEP) funded by 5 councils Private and public sector LEP striving to deliver jobs and economic growth across Tees Valley Private sector led Leadership Board Inward investment, business engagement, economic intelligence, lobbying government, skills, promotion, major strategic projects......

Our role Strategy and Intelligence work monitors Tees Valley trends, demographics and economic performance which helps identify and shape local strategies, transport planning and issues to be addressed to support both current and future employers. Engagement with the business community and promoting Tees Valley as an area to invest, all enable Tees Valley Unlimited to secure streamlined Central Government funding and attract significant private sector investment.

Progress Enterprise Zone: 12 sites, 8 investments worth £384m Supply chain work in key sectors: automotive and oil and gas supply chain events, CORE offshore wind status, Contract Catalyst bond guarantee scheme Business Engagement: Tees Valley Business Summit, 750 business engagements in Investment: 19 RGF bids cleared dd, £42m levering in £270m. £26m in ERDF, £28.5m private investment Skills: Tees Valley Skills Portal, including sector videos Transport infrastructure: James Cook, local majors Policy & Strategy: Statement of Ambition, SAPs, Business Plan

2. The Tees Valley economy Tees Valley is an example of innovation and reinvention Coal-mining Steel-making Ship-building North Sea Oil Production Processing Demise of heavy, smokestack industries and loss of ICI

Tees Valley contributes £10 billion to the UK economy Over 30% of the UK process industries located in Tees Valley, supporting 26,000 direct and indirect jobs UK’s largest exporting port at Hartlepool & Teesport Significant engineering base supplying projects around the world (renewable energy, energy from waste) Growing service sector base Growing digital and creative sector (Digital City) More to do..... Current Situation

Unemployment: Some of the highest rates in the UK: 6.8% (3.7% nationally), youth unemployment at 13.2% Access to finance: Local businesses struggling to access capital / reluctant to use non-bank finance Public sector austerity: Public sector job losses Private sector: Private sector employment rates amongst the lowest in the UK Enterprise: Start-up rates comparatively low Branch plant economy: Reliant on decisions taken elsewhere 3. Key Challenges

4. Positive News Export led growth: continued success of Tees Valley engineering firms (Wilton Group, CTC, TAG, AMEC) Private sector growth: Huntsman, SSI, Mitsubishi, Lotte, Hitachi, Fujifilm, Axa, Darchem Infrastructure: Teesport container terminal expansion, Able, AV Dawson TRIP, CPI Renewable Energy: Offshore wind (PD Ports, Heerema), CCS (Progressive), Bioindustries (Ineos, Air Products) Reputation within Government: RGF success, UKTI MOU, Enterprise Zone, Local Enterprise Partnership

Positive News Over 8,000 net private sector jobs created since Jan 2011:

5. Major Opportunities Government policy: rebalance from public sector dependence to private sector growth. Emphasis on manufacturing/export businesses. City Deal Let’s Grow; Funding for local business 12 Enterprise Zone sites; attractive for small businesses and large capital investment, rate retention UKTI/BIS relationship; recognise the value of Tees Valley to UK Government Sector Plans / Supply Chain Improvements; new industries, export markets, apprenticeships European funding

6. EU Funding Preparations Initial discussions with partners held during March/April Established ‘Part A’ of TVU Investment Panel meetings to discuss matters relating to EU Structural Funds; Submitted response to Preliminary Guidance on S&IFS; Submitted responses to State Aid consultations; High level initial work into mapping out economic context, vision and evidence gaps for the Thematic Priorities; Smart Specialisation research Phases 1 & 2.

7. Smart Specialisation A phased approach: TVU appointed Fraser Associates to look at smart, sustainable and inclusive growth in the Tees Valley via a phased approach Phase 1 – Building an evidence base: RIS3 Guidance used as a framework for compiling evidence; analysis of the regional context, existing strengths and potential for innovation in the Tees Valley; ownership building and governance through a stakeholder group; and potential development scenarios for the key sectors and scope for innovation.

Initial findings: Developed set of possible future development scenarios; Examples among Tees Valley key sectors which fit Smart Specialisation profile; Existing “innovation system” along sectoral lines. Phase 2 – Strategy development: Partner engagement, best practice research, identification of investment priorities, action plan, provisional monitoring and evaluation framework; Use to help inform the SIF Strategy

8. LEP priorities Innovation; commercialisation in key sectors and engagement with CPI/Universities to increase spin outs SME competitiveness; exports and supply chain development to increase/diversify base – more private sector jobs Employment, Skills & Social Inclusion: Youth unemployment, apprenticeships, rural economy Low carbon economy & energy efficiency; offshore wind, subsea, energy from waste, CCS ICT: Build on growing cluster of digital firms, e.g. DCB Sustainable Transport: key pinchpoints and infrastructure, e.g. Teesport, ECML, DTVA

9. Timetable 1.Develop City Deal ask and response to Heseltine Review 2.Assess outcome of CSR on Wed (guidance, allocation) 3.Second phase of smart specialisation work – Aug Assisted Areas Map consultation – Aug Develop SIF Draft Strategy – Sept Develop final strategy – Jan 2014 Throughout = consult key partners