EU COMMON STRATEGIC FRAMEWORK FUNDS IN ENGLAND GOVERNMENT PROPOSALS 17 DECEMBER 2012

HMG’s OBJECTIVES FOR TODAY  Present the Government’s latest thinking for an EU Common Strategic Framework (CSF) Funds delivery model and get feedback from you to inform its further development  Listen to your views  Understand from you your plans and aspirations for how to use the CSF Funds

€147.2 billion = 1.12% of EU gross national income Citizens, freedom, security and justice 1% Administration 6% Sustainable growth: Jobs, competitiveness, regional development 46%: of which STRUCTURAL FUNDS 36% (€53 bn) The EU as a global player: including development aid 6% Natural resources: Agriculture & environment 41% 2012 EU BUDGET (commitments)

‘ ALLOCATED’ TO THE UK: STRUCTURAL FUNDS, RURAL DEVELOPMENT & FISHERIES FUNDS EUROPEAN REGIONAL DEVELOPMENT FUND (£2.8 bn England)  Innovation and knowledge based economy (incl commercialisation of research and technology transfer )  Stimulating enterprise and supporting SMEs  Sustainable Development & low carbon technologies  Building sustainable communities – incl regeneration 10 programmes in England managed by DCLG (previously RDAs) EUROPEAN SOCIAL FUND (£2.5 bn for England)  Helping unemployed and inactive people into work (especially disadvantaged groups such as ex-offenders, young people NEET and unskilled people)  Improving workforce skills and redundancy support 1 English programme managed by DWP

EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (£3.7bn for England)  Improving the environment and countryside; Improving the competitiveness of the agricultural and forestry sector ; Quality of life in rural areas and diversification of the rural economy. One English programme / DEFRA. EUROPEAN FISHERIES FUND (£40m for England in )  Smart, green fisheries (to address discards); aquaculture businesses ; coastal communities dependent on fishing. 1 UK programme / DEFRA. ‘ ALLOCATED’ TO THE UK (continued): STRUCTURAL FUNDS, RURAL DEVELOPMENT & FISHERIES FUNDS

CHANGING TIMES - NEGOTIATIONS FOR  Economic landscape : recession & Eurozone crisis  EU budget & Structural Funds in particular :  Increased focus on driving the EU forward vs global competitors : EU 2020 (external)  Concentration of EU investment on top drivers of EU growth and jobs & delivering UK National Reform Programme  More flexibility to align EU funds to increase impact (regional, social, rural and fisheries)  Streamlining red tape

WHAT’S HAPPENED SO FAR……  Informal consultation (April 2012)  Bespoke events for specific audiences eg. universities, local authorities, voluntary sector, fund specific management committees, etc (Spring-Autumn 2012)  Development of an initial delivery model and Ministerial discussion (November 2012)  Road testing the approach (today!)  Refining the model for formal consultation 2013

WHAT YOU HAVE TOLD US SO FAR  Preference for place based programmes with flexible geographies  Any approach must be responsive to local need and national priorities  Simplification of fund management  Integrated programming, in particular in relation to the Structural Funds (ERDF and ESF)  Better co-ordination of match-funding & co-financing across the public sector

GROWTH PROGRAMME THEMES Top priorities  Research, technological development and innovation – esp. commercialisation  Raising SME competitiveness – esp re exports  Shift to low-carbon economy – esp energy efficiency & renewable technologies  Employment & skills (inc. social inclusion) Other objectives  Climate change adaptation, risk prevention & management  Environmental protection & resource efficiency  Sustainable transport and removing network bottlenecks  Access to & use of ICT

GROWTH PROGRAMME ORGANISING PRINCIPLES National and local priorities aligned Common standards and transparent accountabilities BETTER FOCUS HIGHER IMPACT INCREASED GROWTH Local decision making and drive A single set of targets and milestones across England EU regulatory requirements met and financial risk minimised Lower cost & simplifies administration Complex EU funds packaged as a coherent and consistent programme Variable geographies

PROPOSED DELIVERY ARRANGEMENTS Projects Community Led Local Development, including Leader and FLAGs Maritime and Fisheries Programme (EMFF) Rural Development Programme (EAFRD) Growth Programme (ERDF, ESF & EAFRD) CSF Growth Teams Co-financing Organisations LEPs / ITIs

GROWTH PROGRAMME  An “EU Growth Programme” to be financed by ERDF and ESF with a contribution from EAFRD  A single “EU Growth Programme Board” incorporating a joint Programme Managing Committee for ESF and ERDF  LEPs to be the fundamental building blocks receiving a 7 year notional allocation subject to periodic performance reviews  LEPs to identify their preferred EU investment prospectus as part of their wider growth strategy, for agreement by the Growth Board. LEPs will not take on project delivery accountabilities, however but retain a strategic oversight role in cooperation with local partners.  Government departmental teams to work as “CSF Area Growth Teams” to support LEPs in their strategic role. All final funding decisions to be dependant upon due diligence by fund Managing Authorities.  National co-financing initiatives to take account of local needs  ‘ITIs’ may be an option in a limited number of places - where this arrangement will deliver better value, higher impact results.

 Greater alignment of eligibility rules for projects across the country  Improved and harmonised guidance to applicants  Managing authority to ‘hide the wiring’ where projects draw on more than one fund GROWTH PROGRAMME: A SIMPLER SYSTEM

RURAL DEVELOPMENT PROGRAMME  Securing environmental benefits  Boosting the competitiveness and growth of agriculture and forestry sector  Strengthening rural communities

MARITIME AND FISHERIES PROGRAMME  Smart, Green Fisheries  tackle fish ‘discards’  fisheries which are less damaging to the marine environment and support innovation  Smart, Green Aquaculture  Sustainable Development of Fisheries Areas  reverse the decline of communities dependent on fishing

EU PRIORITIES  Europe 2020: “smart, sustainable and inclusive growth”  National Reform Programme  Commercialise new technologies  Finance SMEs  Invest in low carbon power, infrastructure and new ‘green’ markets  Address NEETs & higher/intermediate skills gaps  Common Strategic Framework  Align CSF funds to improve coherence, impact, efficiency and effectiveness  Thematic Concentration  80% ERDF for innovation, SMEs, low carbon (ICT?) - except Cornwall (tbc)  20% ESF &ERDF for social inclusion (tbc)  Commission position paper for the UK – 6 December

IDEAS INTO REALITY : CSF NEGOTIATIONS PROCESS EU Commission tests & launches proposals Ministers agree domestic delivery Go live Informal consultation Develop UK EU budget negotiating positions Develop UK CSF negotiating positions UK negotiates EU budget Develop programmes Formal consultation Identify, develop and test policy options UK negotiates with other EU countries, European Parliament and Commission EU - Eurozone crisis; downward pressure on EU budget; upward pressure on CSF funds to deliver results UK – pressure to drive high impact growth; localism; city deals; CSR; ministerial change & elections

WHAT DO YOU THINK?!

Workshop Questions Local priorities What are the four big things that would transform the economic and social situation of your area? Who do you need to collaborate with to achieve this? Other LEPs? Other organisations? What resources do you have to bring to the table? Process/implementation How will the proposed delivery mechanism help you deliver your objectives? Are there practical constraints in making this model work? If so, what can we do to overcome this? How can you help your LEPs to be in a position to engage in the process?