1. Key Headlines on European Funding 28th November 2016
John Hacking & Andy Churchill
First slide

2. ESIF European Structural Investment Funds
These are for Smart, Sustainable and Inclusive Growth
Two main Funds for GM are ERDF and ESF
European Social Fund
Starting with people
Revenue fund, human resources, training and job subsidy
European Regional Development Fund
Starting with enterprise
Capital & Revenue, buildings, loans, training

3. National Programmes delivered at Local Level
National ESF Operational Programme
National ERDF Operational Programme
National Programme Monitoring Committee (Growth Board)
Strategies at LEP level (39 sub-committees)
LEP level ESIF Committee
Must have Third Sector involvement at all stages of the Programme
Regulations
UK Partnership Agreement

4. 2014-20 Seven year programmes Late start first calls March 2015
first projects agreed March 2016
N+3 Final Claims to Europe before end of 2023
Further changes and delays
Development of devolution
Pause after referendum vote
More money

5. Managing Authority Runs the Operational Programme Agrees Projects
Makes claims to the European Commission

6. Devolution Local LEP level ESIF committee is advisory only
Run by DCLG on behalf of the two Managing Authorities
DCLG is MA for ERDF and DWP is MA for ESF
SUD (10% of ERDF for Sustainable Urban Development)
All eight core cities
Co-Financing Organisation
GM is first non-national body
Intermediate Body (some powers devolved from MA)

7. Bidding Direct Bidding for all of ERDF
Direct Bidding for some of English ERDF
Co-Financing for some of English ESF
Skills Funding Agency
DWP
NOMS
Big Lottery Fund
and now, G Manchester (through Trafford)

8. Co-Financing MoU Committed Unallocated BLF 173 156 17 NOMS 131 DWP 119
114 5
SFA
725
520
205

9. English ESF Co-financing
Large (national) body
Identifies its own match
Allocated an amount of ESF
Carries out its own bidding rounds to commit the ESF and deliver outputs and results
BLF allocates ESF and Match. SFA/DWP/NOMS just allocate ESF

10. Skills Funding Agency
It will lose its matchable funds soon, because of devolution
So it tried to squash 3 years funding into two (to March 2018)
This didn’t work
Only £520m (of £725m) was allocated through calls
It will allocate some more, but cannot spend it all
(extensions to July 2018, more money to existing projects)
So more money for devo from 2018

11. Referendum vote
Prime Minister says will trigger Article 50 at end of March 2017
We then have two years to agree, or an agreement is imposed
So we would leave by March 2019
or Later
Chancellor’s statement October 3rd said all projects signed before we leave the EU will be guaranteed funding
Most projects are three years, so that takes us to 2022 (for the programme)
So we have funding for about the next six years

12. Autumn Statement
Chancellor’s statement of 3rd October confirmed at Autumn Statement
Quoted in Northern Powerhouse Strategy
Guarantee for projects signed before we leave the EU

13. More money across England
Nationally, £205m not committed by SFA
Some could come to GM
Devaluation of the pound
The total euros for England from Europe meant about £3bn for both ESF and ERDF
So even if say only a ten per cent devaluation, that gives us about another £300m ESF and £300m ERDF more than we had the day before the vote
The Treasury will issue a guide rate once the position has stabilised

14. Simplification Programmes have become much too bureaucratic
Focus on recording money spent and checking eligibility
So little concern for what is being delivered
(We halved the intended jobs in the last programme)
European Commission is determined to change this
Simplification Agenda
High Level Group
ESF Platform on Simplification

15. Simplification - progress
For ESF, use 15% of staff costs to cover indirect costs
Or use 40% of staff costs to cover all non-staff costs
No receipts needed for non-staff costs
Less paperwork, quicker claims, better audits, less errors
More flexibility to run projects
Described in English ESF Guidance (April 2016)
ESF Guidance on State Aids - Guidance November 2016

16. Simplification - 2017 Dramatic simplifications to Technical Assistance
Standard Unit Costs being introduced (EU wide)

17. Devo and GM Co-Financing Organisation Agreed April 2016
First non-national Co-Financer
Devolved Education and Skills Budget
Match for ESF

18. ESF in GM P1 (unemployed) £81.85m Total available
£30.0m Awarded through SFA and BLF
£32.7m CFO proposal (Working Well, and Work and Health)
£19.1 m Still to be allocated (2018 onwards?)
P2 (employed) £64.1m Total available
£10.9m 2 SFA contracts awarded
£17.4m Employer engagement call under way
£35.0m Future calls (likely higher skills P3 and above)

19. ERDF in GM - next steps
Two calls imminent- Start Up support & Science Commercialisation
Much of ERDF through Financial Instruments (loans). British Business Bank being approved, will appoint local Fund Managers
P3 Enterprise
Previous bid cancelled (New Enterprise Allowance match not allowed), so new call
P4 Low Carbon Economy
For calls being worked up, including Energy Efficiency in Public Buildings small scale low carbon.renewables in community centres etc, perhaps with loan

20. Adult Education Budget
AEB is SFA funding (not ESF, Learner Loans or Apprenticeships)
Will be devolved to 30 local commissioning authorities
SFA will cease all Independent Training Providers contracts in 2017
This includes Third Sector Contracts
Contracts will all then have to be re-tendered
This does not apply to Colleges
This has serious implications for Third Sector providers
including consortia

21. Website: www.networkforeurope.eu
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Twitter: @network4europe
Final slide