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 D2N2 ESIF programme To outline the nature, range and scope of activities To explain the ‘route to market’ for applicants To give an opportunity to seek further clarification through the workshop sessions

What are the European Structural and Investment Funds? ESIF are the European Commission’s primary mechanism for “reducing social and economic disparities across the EU”. In England, these funds comprise the following elements: European Regional Development Fund (ERDF) supports research, innovation, business development and infrastructure investment European Social Fund (ESF) supports skills, enhancing access to employment and social inclusion. European Agricultural Fund for Rural Development (EAFRD) supports economic development in our rural areas . 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.

Who is responsible for the Funds? In England the accountable body (Managing Authority) for each funding element is: ERDF - Department for Communities and Local Government. (DCLG) ESF - Department for Work & Pensions (DWP) EAFRD - Department for Environment Food and Rural Affairs (DEFRA) All applications, monitoring, financial processing and change requests go through Managing Authorities. Payments to projects on defrayment and in arrears (3 months) Matched funding of 50% is required across the programme.

D2N2 ESIF Financial Allocations 2014-2020 ESIF is “funding of last resort” and intended to add value to the D2N2 area ERDF - £104.4m ESF - £104.4m EAFRD - £5.5m BIS have given guidance on levels of spending for LEPs

ESIF and Rural Areas Mainstream delivery in rural areas through ERDF and ESF. This will be enhanced through EAFRD (European Agriculture Fund for Rural Development) D2N2 has an allocation of £5.5m Match funding is required but levels vary

ESIF and Rural Areas In D2N2 we have allocated funds to: Rural Business Advice Supporting processing/marketing of agricultural products Business Start up non agricultural Creation & Development of non agri activities Small scale renewable energy Broadband infrastructure & use of ICT Small scale tourism infrastructure Collaboration in joint work processes & developing marketing tourism

What we’re buying with EAFRD money… Beneficiaries Advised 5,600 Jobs created 245 Supporting processing/marketing of agricultural products 2,500 Business Start up non agricultural 41 Small scale renewable energy 10 Broadband infrastructure 2 Small scale tourism infrastructure 5 Collaboration in joint work processes & developing marketing tourism 5

What we’re buying for the ERDF & ESF money… 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 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 ESIF ‘fuel in the tank’ for delivering the Strategic Economic Plan

Match Funding ESIF will fund 50% of the project costs Some national bodies will provide the other 50% via ESF “Opt Ins”. In D2N2 the opt in organisations for are: Skills Funding Agency Department of Work and Pensions The Big Lottery Fund A small proportion of ESF activities require match from the applicant but most ESF projects are via “Opt Ins” All ERDF & EAFRD requires match from the applicant Mention some implications of use of opt ins – shared programmes with Opt in Organisations – influence delivery and selection of providers through prescribed application processes e.g. only providers registered on the Register of Training Organisations can apply for SFA – opted in provision

Routes into the ESIF 2014-2020 programme 2 routes for securing funding in the ESIF 2014-20 programme, via ‘Open Calls’ or ‘ESF Opt-Ins’ A call is an open invitation for applicants to submit proposals against a published specification. Applications for funding from the ESlF may only be submitted in response to a published call for proposals issued by the Managing Authority. The ESIF Programme Board will oversee the investment of ESIF in D2N2.

ESIF Priority Axes 2014-20 Innovation Promoting climate Change adaptation Enhancing access to Information And Communication Technologies SME Competitiveness Low-carbon economy in all sectors Environment and resource efficiency Better education, skills and Life long learning Social inclusion & combating poverty Employment and labour Mobility Prospective providers must outline in their applications how they intend to address the cross cutting themes of Social inclusion Sustainable Development and Equality and Anti discrimination

D2N2 ERDF Priorities Innovation – new products, new markets, business processes Business Support – ICT, connectivity, incubation space Access to Finance – early growth finance Rural – Business Adviser/grants (EAFRD) 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.

D2N2 ESF Priorities Develop employer led, added value, flexible provision to support and enhance mainstream provision Address market failure Better prepare people to secure jobs Remove barriers to employment Engage with new businesses in skills Coverage and coherence – D2N2 wide access

Social Inclusion Framework D2N2 ESF Programmes Social Inclusion Framework Time2Change YE (D2N2) YEI (N) CAREERS Local EMPLOY Local SKILLS EU Structural & Investment Funds Strategy (2014 – 2020) Strategic Economic Plan for Growth Skills for Growth Strategy Skills & Employment Deal Capital Skills Funds D2N2 Growth Hub

ESIF ‘Early’ Calls Technical Assistance ERDF PA1: Innovation £14,000,000 PA3: SME Competitiveness £12,500,000 PA4: Low Carbon £10,000,000 National Products – Business Support £1,500,000 ESF EMPLOY LOCAL (SFA Opt In) £6,000,000 SKILLS LOCAL (SFA Opt In) £7,000,000 Youth Employment Initiative £3,200,000 Technical Assistance www.gov.uk/european-growth-funding

Core Delivery Principles 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’

Find out more… Employment and Skills Katrina.woodward@d2n2lep.org / 0115 957 8753 Business Support, Innovation, Rural Lindsay.allen@d2n2lep.org / 0115 957 8745 General ESIF / Strategy Matthew.wheatley@d2n2lep.org / 0115 957 8744 Richard.kirkland@d2n2lep.org / 07867 178967 http://www.d2n2lep.org/EUFunding Twitter: @D2N2LEP