1. 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.

2. Purpose of the Presentation
To give an overview of the ESIF Programme in D2N2
To give an overview of the ESIF application process
To explain the governance and partnership arrangements involved in managing and delivering the programme
To explain the ‘route to market’ for projects
To give an opportunity to seek further clarification and network

3. Basics for the current PA5 and 6 calls
Minimum project value £1 million
Intervention rate is 50% - £500,000
Call closes Friday 27 May
Applications need to clearly demonstrate how
activity meets PA requirement
contributes to delivery outputs
Meets local need as set out in the D2N2 ESIF strategy

4. ESIF in D2N2 A local ESIF 2014-2020 strategy for;
£98m ERDF (European Regional Development Fund):
Supporting business, particularly SMEs
£98m ESF (European Social Fund)
Supporting people with employment and skills
£5.3m EAFRD (European Agricultural Fund for Rural Development)
Supporting economic growth in rural areas
Bring partners together to oversee’ implementation and spend through its ESIF Programme Board
So, what are European Structural and Investment Funds, what are they worth in our area and what is our role as a LEP.
In 2013, Government asked each of the 39 LEPs to draw up a six year strategy for spending a notional allocation of ESIF funds.
The D2N2 allocation was one of the largest in the country as was made up of
Making a total of £244m Euros.
The strategy has been through 3 iterations between October 2013 and June It is a strategy for the whole LEP area.
However, we now need to very much need to move towards and focus on implementation.
Having led the preparation of the Strategy the ongoing role of the LEP is to bring a range of partners together to advise on its effective implementation.
Put a strategy together then Advise the Managing Authority which bids fit with that strategy
The ‘ESIF’ Strategy is provides ‘fuel in the tank’ to help deliver our strategic economic plan,
Key differences between the LGF and ESIF is that whilst LGF funds will be devolved to an ‘accountable body’ in the D2N2 area, the ESIF funds will be held by Government and our role will be give endorsement to the projects that we will wish to see funded.

5. D2N2 ERD Funding by Priority Axis
PA1 Innovation - £18.2m
PA2 ICT - £12.3m
PA3 – SME competitiveness - £34.8m
PA4 – Low Carbon - £22.6m
PA5 – Climate change - £4.9m
PA6 – Environment / Resource efficiency - £4.7m
Nationally low take up for PA4 and PA6
Issues around clarity of eligibility and quality of applications submitted

6. What will ESIF buy in D2N2
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, innovation
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

7. D2N2 Targets and Progress
Targets which must be met within this programme
N+3 targets measured annually from 2018 across the whole programme
Performance target financial – measured in 2018 and 2023 across programme and by PA level
Performance targets non financial – measured in 2018 and 2023 across programme and by PA level

8. D2N2 Key Challenges Huge demand for PA3 in D2N2 and nationally
General lack of match funding at required levels for this programme
Ensuring delivery against performance targets with the first milestone in 2018
Changes to exchange rate
Pressure therefore in developing high quality proposals that meet these challenges

9. Key issues from PA4 call Minimum £1m projects required
Finance and nature of match i.e. what is eligible.
State aid rules and interpretation
SME inertia – cant see ROI
Ineligible activity e.g. retrofit
Lack of alignment with D2N2 ESIF strategy and Core delivery principles

10. PA5 Climate Change Local Priorities
Focus on priority area - Lower Derwent
Significant flood risk area to businesses and residencies
Added value – complementing and enhancing current planned flood management programmes e.g. helping them progress more quickly

11. PA5 Climate Change Actions and Outputs
Indicative Actions
Fluvial risk management e.g.
Surface water run off / drainage
Output Indicators
C23 – surface of habitats supported to attain better conservation status
P6 – businesses and properties with reduced flood risk

12. PA6f Resource Efficiency Priorities
Support and advice to businesses to improve resource efficiency and improve competitiveness
Support or businesses in adaption of innovative technologies (includes water and waste recycling and recovery)
Piloting and demonstrating innovative technologies to promote resource efficiency

13. PA6f Key challenges SME inertia
Uncertainties over benefits of adopting efficiency measures
Decoupling economic growth from increasing resource use
Links to long term competitiveness
Knowing when to invest and what in

14. D2N2 ESIF Role Localism Lead role for LEPs – 7 year ESIF allocations
Bring local partners together to ‘oversee’ implementation – D2N2 ESIF Committee
Develop and agree local ESIF strategy and Implementation Plan with partners
Agree ‘best’ projects with UK Government
Monitor project delivery against strategy and programme priorities
Local programmes which are best fit for D2N2
No Stone Unturned’ published October 2012
Government response March 2013 – 81 out of 89 recommendations accepted, 5 rejected, 3 in SR
Increasing Whitehall asks of / offers to LEPs - and increasing focus on their performance
Single Local Growth Fund from 2015
LEPs to develop multi year strategic plans
Funding to be allocated though Local Growth Deals
LEPs to take greater role in EU funding distribution
Support LEP capacity
Majority of funds notionally allocated to LEP areas
–Each LEP will lead the development EUSIF investment strategy
–Plan must be strategic, supported by strong evidence base
–LEPs must collaborate in order to maximise impact
–LEPs must identify local sources of match funding

15. Core Delivery Principles ‘What good looks like’
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’

16. D2N2 ERDF Priorities 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
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.

17. Growth Hub All roads lead to the Growth Hub!!
Call

18. European Structural & Investment Fund 2014-20 Open Route
ERDF / ESF Operational Programmes
ESIF Strategies
(set out local strategic priorities)
European Structural & Investment Fund
Open Route
Inception to Funding Agreement
(excluding Opt-Ins, Fis, SUDS)
Applicant
Outline Application against Call Specification
Full Application
Funding Agreement
Managing Authority
Publish Call
Assess Outline (Gateway & Core Selection Criteria)
Full Technical Appraisal
(Core Selection Criteria)
Selection into Programme
Local Implementation Plan
(Scope and Timing of Calls
Call Specification
Promote and Publicise Call
Discuss and endorse selection
Assess Application against ESIF, call specification and Prioritise
Assess Full application and review technical appraisal against ESIF and prioritise
LEP ESIF Programme Board

19. Process for ESIF Applications

20. Questions and Contact details
Richard Kirkland
ESIF Co-ordinator
D2N2 Local Enterprise Partnership )
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