Future of European Funding in London Alex Conway European Programmes Director London Development Agency Monday 23 May 2011 London Employment and Skills Convention

2 Map of distribution of Structural funds, : 15 member states 2007: 27 member states Red = cohesion funds programmes: €308bn UK progs: €9.4bn London: €660m = over £1,000,000,000 to spend in London

3 European Structural Funds European Regional Development Fund (ERDF) Support for SMEs, regeneration European Social Fund (ESF) Getting people into work and upskilling workforce. Cohesion Fund Gross National Income (GNI) less than 90% of the Community average.

4 European Structural funds: European Regional Development Fund (ERDF) European Social Fund (ESF) Seven year ‘Operational Programme’ negotiated with EC; –In UK: ‘OP’ is regional for ERDF Governed by regulations that apply to all 27 Member states; –More bureaucratic than UK programmes, heavily audited; Must be at least 50% match-funded; –usually public sector, but also can be private sector; Funds clawed back if not spent quickly enough; –never happened in London. Programmes are monitored by Committees of regional stakeholders; –In London, nominated and chaired by Mayor

London programme management structures  Government has devolved management of ERDF and strategic oversight of ESF to the Mayor of London  On behalf of the Mayor, the European Programmes Management Unit (EPMU)  Acts as secretariat for Regional Committees  Ensures that European programmes are joined up with Mayoral initiatives  Manages and monitors ERDF programmes; - draft prospectuses, appraise/score bids, monitor pay and audit projects;  Drafts Regional ESF Framework; - approves ‘co-financing organisation’ plans and monitors their performance.

6 London’s ERDF Programme  €182m to invest  Bidders must supply own match-funding;  Four Priorities  Priority 1: Business innovation, research, and promoting eco-efficiency €50m - Supporting services to business that address market failures and barriers to innovation  Priority 2: Access to new markets, finance, and strengthening entrepreneurship €52m - Tackling strategic barriers to growth faced by SMEs and entrepeneurs in understanding and accessing new markets  Priority 3: Sustainable Places for Business €73m - Supporting development of high-quality, low-carbon work environments for SMEs  Priority 4:Technical Assistance €7m

7 London ESF Programme Structure

8 Investment Priorities in London Programme Value: £420million ESF Programme over 7 years. Matched by a further £420m of domestic funding. Programme splits into 2 phases: (£223m) and (£197m) Three Priorities: Priority 1 Extending Employment Opportunities (71%) Priority 2 Creating a Skilled and Adaptable Workforce (28%) Priority 3 Technical Assistance (1%)

9 London ESF Funding Split by CFO Priority / sub-priorityCFOs operating under PriorityESF Funding £m Priority 1: Extending Employment Opportunities299 Priority 1.1: Improving the employability and skills of the unemployed and economically inactive people. Skills Funding Agency DWP LDA London Councils National Offender Management Service (NOMS) Priority 1.2: Employment and skills activities targeted at young people who are not in education, employment or training (NEET) or at risk of becoming NEET Skills Funding Agency LDA 54 2 Priority 1.3: Community Grants Programme for those groups furthest from the labour market LDA London Councils 3131 Priority 2: Creating a Skilled and Adaptable Workforce121 Priority 2.1: Increasing the number of employees with improved basic skills levels, including English for Speakers of Other Languages (ESOL) needs. Skills Funding Agency LDA 31 6 Priority 2.2: Increasing the number of employees with improved level 2 skills Skills Funding Agency36 Priority 2.3: Increasing the number of employees with improved level 3/4 skills Skills Funding Agency48

10 Lead contract providers by sector ( ) SectorNo. of Projects Public105 Private137 Voluntary158

11 Programme Achievements to Date Expenditure This year’s expenditure target met 2012 target nearly met. Priority 1 67% of first-half funding spent Targets exceeded or met Priority 2 76% of first half-funding spent, including the additional ‘revaluation’ funds. Targets exceeded or met

ESF Programme Development £197million ESF for London Regional ESF Committee endorsed a revised Regional ESF Framework for in December CFO activity –National Offender Management Service –London Councils –Department for Work and Pensions –Skills Funding Agency –London Development Agency –Greater London Authority?

– the next programming period 1. ERDF and ESF Mayor and London stakeholder’s response to EU’s ‘5 th Cohesion Report’ city_london_2011_01_25.pdf Draft regulations later this year –Simplification, innovation? Splitting funding between EU states – and UK regions 2. Other European programmes?

14 Contact: From 1 July –