1. European Structural and Investment Funding (ESIF)
AHSN ESIF/ LEP knowledge sharing webinar
14 April 2015

2. Matching Health with Growth
ESIF and the NHS –
Matching Health with Growth
Introduction
Background to the funding
Equipping LEPs
Key areas of NHS focus
National and local intelligence
Plenty of discussion points…

3. Matching Health with Growth
ESIF and the NHS –
Matching Health with Growth
Introduction
Background to the funding
Equipping LEPs
Key areas of NHS focus
National and local intelligence
Plenty of discussion points…

4. Introduction Informal way of sharing intelligence and information
Tell us what works/doesn’t work and what issues you would like to focus on in future
Help make these interactive!

5. Background to the funding
ESIF supports economic and social development projects – think ‘jobs and growth’
EU funding that is devolved to EU member states, hence not competing/collaborating with other EU actors
Has to be match-funded
round of European Structural Funding saw c€7bn devolved to England to spend
National Graphine Institute in Manchester
Campus for Ageing and Vitality in Newcastle
(Albert Docks!)
plus
Over 20,000 business start-ups
Over 50,000 jobs

6. Background to the funding
Main funding pots are ERDF and ESF:
The European Regional Development Fund (ERDF)
focuses on regional development, economic change and enhanced competitiveness.
The ERDF’s priorities are to:
• support innovation and the knowledge-based
economy
• stimulate enterprise and support successful
businesses
• ensure sustainable development, production and consumption
• build sustainable communities.
The European Social Fund (ESF) focuses on training, access to employment and social inclusion.
The ESF was set up to:
• improve employment opportunities and help raise standards of living
• help people to get better skills and job prospects, particularly for those not in education, employment or training
• help equip the workforce with the skills needed by business in a competitive global economy
• combat social exclusion.

7. Background to the (new) funding
Govt wanted to change the way money is spent and priorities determined for – 2020
Role of LEPs replaced role of RDAs, with much more devolved responsibility for leadership of local growth, including EU Structural Funds
ESIF Growth Programme attempted to pull together ERDF and ESF (and parts of EAFRD - agriculture)
England given €6.2bn for 2014 – 2020 for ESF and ERDF and govt committed to focus on the new priorities for this investment

8. Background to the (new) funding
Funding across UK
UK receives €10.8billion for ERDF and ESF for
England and the Devolved Administrations will see an equal (5.4%) real terms cut in funding compared to
3% of the budget for Transition and More Developed regions will be transferred to the Less Developed regions in proportion to their allocations.
All Scottish regions will receive the equal 5.4% real terms cut in funding as per Scotland as a whole.
English Transition regions will see an equal 14% real terms rise in funding compared to 2013.
English More developed regions will see an equal 1% real terms rise in funding compared to 2013.
Funding for Gibraltar will be frozen in real terms.
Funding roughly equates to levels of deprivation, Sheffield/Liverpool queried their allocations

9. Background to the (new) funding
Chosen top priorities for ESIF investments in England:
innovation and research and development
support for small and medium-sized businesses
low carbon
skills
employment and social inclusion
Chosen nationally, to help shape local investments

10. Background to the (new) funding
UK also qualifies for Youth Employment Initiative (YEI) in 5 areas
£170million to help young people aged 15 to 24 years find work, matched by ESF and project partners, bringing the total funding to nearly £490 million.
YEI covers:
Inner London - £35.7 million
Merseyside - £22.2 million
Southwest Scotland - £38.6 million
Tees Valley & Durham - £19.8 million
West Midlands - £42.2 million

11. Background to the (new) funding
EU rules and regulations still apply on ESIF
UK government had to agree Partnership Agreement with European Commission, setting out the government’s ESIF plans, priorities and management arrangements
Govt also needs to agree with EC separate Operational Programmes for England for ERDF and ESF, setting out strategy and priorities for use of the funds (see below for drafts)

12. Why now for NHS?
New investment priorities much more relevant to where NHS is now
Regional NHS bodies well placed to open NHS up to LEPs
Core Cities agenda, inc Devomanc, links to this wider form of local economic integration
Need to look for supplementary and complementary forms of funding in current climate and as NHS becomes bigger player in local economy

13. Discussion point: NHS and ESIF
Any questions so far?

14. Equipping Local Enterprise Partnerships (LEPs)
All England money allocated notionally to the 39 LEPs, ranging from €750m to London to €14m for Buckinghamshire Thames Valley
Govt published list of key investment areas, national policies and generic activities the funds could support
LEPs spent (long) time drawing up local ESIF strategies on how to invest money in their geographic area – strategy should have been a ‘partnership’ and way of securing future funding ideas and partners
Govt gave continuous ‘feedback’ on these strategies

15. Equipping LEPs - realpolitik
Govt vision for LEPs to spend the money diluted to fit with European Commission requirements
“We therefore propose to proceed with a model in which LEPs and partners have a key advisory role while decisions will remain with the Managing Authorities.”
Only GLA has full ‘intermediate body status’ and can manage/take decisions on all aspects of those programmes in London; Core Cities have control of c5-10% of ERDF
Govt committed to review the position in next 12 months (but which govt?)

16. Equipping LEPs – so what will they do?
LEPs are still THE key local body to engage
Their strategies are still being used
All LEPs have a local ESIF Committee linking local partners with the Managing Authority (DWP, CLG)
LEPs still determine whether to use Opt-In bodies
They could get more ESIF powers going forward
Strategic relationship for NHS with LEPs goes well beyond ESIF – eg Regional Growth Funds, strategic leadership of local growth, building a local investment plan…

17. Equipping LEPs – so what will they do?
The Managing Authorities work closely with local partners who provide:
 Practical advice and information to the Managing Authorities to assist in the preparation of local plans that contribute towards Operational Programme priorities and targets;
 Local intelligence to the Managing Authorities in the development of project calls (decided by the Managing Authorities) that reflect Operational Programme and local development needs as well as match funding opportunities;
 Advice on local economic growth conditions and opportunities within the context of Operational Programmes and the local European Structural and Investment Funds Strategy to aid the Managing Authority’s assessments at outline and full application stage.

18. Discussion point: Equipping LEPs
How do we think AHSNs can best influence ESIF funding?
E.g. How many NHS orgs have representation on ESIF Committees and/or LEP sub-groups?
Have commitments in ESIF strategies and associated discussions re health investment continued?
To what extent have LEPs been open to discussion to shape calls?

19. Key areas of NHS focus Research, development and innovation Who:
Supporting SMEs to commercialise R&D, especially those linked to health science technologies
Creating physical infrastructure for innovation, including ‘incubation space’ for new businesses active in innovation
Building higher level workforce skills to support R&D
Supporting innovation actors inc SMEs, social economy, research centres/universities to promote social innovation & innovation in health
Facilitating networks of SMEs seeking to commercialise R&D to bring new products/services to the market, esp through open innovation
Who:
AHSNs
HEIs
Acutes

20. Key areas of NHS focus Skills and employment Who:
Innovative approaches to training for the unemployed
Supporting low-skilled people in low-paid work to help them progress, and for apprenticeships
Innovative approaches to pre-employment training
Supporting intermediate and high-level vocational provision for the unemployed and for career progression
Who:
LETBs
NHS employers
CCGs FE
DWP

21. Key areas of NHS focus Social inclusion Who:
Tackling barriers to work, including mental health issues
Targeting specific communities or ethnic minorities
Developing the capacity of social entrepreneurs to address the needs of their local communities
Developing the capacity of community groups to participate in the delivery of services to those furthest from the labour market
Who:
Charities
Public Health
LETBs/AHSNs
HWBs/CCGs
Mental Health providers

22. Key areas of NHS focus Research, development and innovation
All LEP plans for investing in this area have to be based on policy of Smart Specialisation
EU concept that focuses on limiting public-private investments to where they will give biggest reward
“Smart specialisation is a new innovation policy concept designed to promote the efficient and effective use of public investment in research. Its goal is to boost regional innovation in order to achieve economic growth and prosperity, by enabling regions to focus on their strengths. Smart specialisation understands that spreading investment too thinly across several frontier technology fields risks limiting the impact in any one area.”

23. Key areas of NHS focus Research, development and innovation
Therefore England’s (draft) Smart Specialisation is the key national ESIF document in area of innovation:
It specifically references Innovation, Health and Wealth and role of AHSNs
“Innovation in Health and Wealth focuses on the NHS as a major investor and wealth creator in the UK, whose success in adopting innovation enables industries to invest in developing the technology and other products the NHS needs for its development. The aim of is to support the NHS in achieving systemic change in the way it operates; in pursuing innovations that add value for the service but not cost and in enabling the consistent and widespread adoption and diffusion across the NHS. This involves both the supply of, but also critically the demand for, new and existing ideas, services and products. Central to this agenda is the relationship between the NHS, academia and industry.”

25. Call specification Local context
“This call for projects is for capital projects based in Greater Manchester which will aid Greater Manchester in developing technologies in the priorities identified above. There will be a later call for revenue projects looking at the commercialisation of these technologies.
Applications should ensure that Greater Manchester continues to develop its influence in these and related areas, and in particular projects which address these five priority areas:
 Increasing entrepreneurship and business growth
 Improve the productivity of existing science base
 Expand and accelerate the commercialisation of research
 Improve the profile of Greater Manchester science
 Improve Greater Manchester’s Science and Technology skills base1
Applications should be led by or have close links to local Higher Education Institutions and have strong private sector partner involvement and investment.
Specific areas of focus are Advanced Materials (including graphene) and Health Innovation (including e-health, stratified medicine and cancer research) as these have been identified as key areas of local strength for which there is global demand.”

26. Discussion point: areas of focus
What are the opportunities for the NHS and AHSNs?
What is the role for the AHSN?

27. Areas for future cooperation?
•Smart Specialisation (12.30pm, 14th May 2015)
•Talent for Care- skills & employment (12.30pm, 15th June 2015)
•Social Inclusion (12.30pm, 15th July 2015)
Are these right? Any others?
@NHSConfed_EU

28. Annex

29. Published calls
Some calls were published before purdah, the rest of the first tranche of calls will come after the election (June)
All calls can be viewed on one webpage and all clearly labelled by region and by thematic area:
All bodies wishing to bid for projects must be registered
Two stage process, with first stage an ‘outline application’ and initial two month deadline

30. The two stages
1 - Applications will be subject to a Gateway Assessment undertaken by Managing Authority under the following criteria:
Applicant eligibility;
• Activity and expenditure eligibility; and
• The fit with the ERDF OP and the call.
2 - Proposals that pass the GA move into Core Assessment which consists of the following:
• Strategic fit;
• Value for money;
• Management & control;
• Deliverability;
• Procurement / tendering; and
• State Aid compliance.

31. The usual ESIF suspects
Local Authorities – often support LEPs
HEIs – money to invest and significant focus
Charities – key funding for activities
FEs – often feel overlooked but expanding
Industry – relevant to local economy
Any others?

32. Published calls
Most of early calls have been published for a reason, e.g. YEI calls are a priority and need to be spent by 2018, or LEPs have agreed informally with a potential provider and can target a specific call
Real range in scope of projects expected, e.g. London asking for minimum £10m bids for skills and employment
ERDF projects often referencing minimum size of project of £500k and timeline of three years
Projects starting usually within c3months following approval

35. Call specification Contents 1. Call Context 1.1 National Context
1.2 Local Development Need
1.3 Scope of Activity
Investment Priority 1a
Investment Priority 1b
2. Call Requirements
3. Required Deliverables
4. General Information
4.1 Compliance and Eligibility
4.2 Intervention Rate & Match Funding
4.3 Applicants
4.4 Cross Cutting Themes/Horizontal Principles
4.5 State Aid & Revenue Generation
4.6 Funding Agreement
4.7 Procurement
5. Application Process & Prioritisation Methodology
6. Support
7. Key Documents
8. Document Checklist
9. Document Submission
10. Timescales
11. Formal Agreement of the European Regional Development Fund Operational Programme

36. Call specification Local context
“This call for projects is for capital projects based in Greater Manchester which will aid Greater Manchester in developing technologies in the priorities identified above. There will be a later call for revenue projects looking at the commercialisation of these technologies.
Applications should ensure that Greater Manchester continues to develop its influence in these and related areas, and in particular projects which address these five priority areas:
 Increasing entrepreneurship and business growth
 Improve the productivity of existing science base
 Expand and accelerate the commercialisation of research
 Improve the profile of Greater Manchester science
 Improve Greater Manchester’s Science and Technology skills base1
Applications should be led by or have close links to local Higher Education Institutions and have strong private sector partner involvement and investment.
Specific areas of focus are Advanced Materials (including graphene) and Health Innovation (including e-health, stratified medicine and cancer research) as these have been identified as key areas of local strength for which there is global demand.”

37. Call specification Call Requirements
 An indicative budget of £ million (£15 million capital and £3.905 million revenue) has been allocated to this call. This is intended as a guide and may be reviewed;
 All applications are competitive. Proposals can only contain activities which are eligible for European Regional Development Fund;
 Proposals should be for a minimum of £500,000 European Regional Development Fund;
 Applicants will need to have eligible match funding for the balance of costs which must be from a source other than the European Union
 Projects should be capable of providing coverage of the Greater Manchester Local Enterprise Partnership area;
 All procurement must demonstrate compliance with European Union regulations;
 Applicants must demonstrate compliance with State Aid law; and
 All expenditure and activities will be subject to rigorous audit and non-compliance may lead to financial penalty.

38. Call specification Required deliverables
C1 Number of enterprises receiving support
C2 Number of enterprises receiving grants
C4 Number of enterprises receiving non-financial support
C5 Number of new enterprises supported
C6 Private investment matching public support to enterprises (grants)
C26 Number of enterprises cooperating with research entities
C28 Number of enterprises supported to introduce new to the market products
C29 Number of enterprises supported to introduce new to the firm products
P1 Number of researchers working in improved research or innovation facilities
P2 Public or commercial buildings built or renovated

39. The rulebook
Govt have published one national set of selection criteria for both ERDF and ESF:
and separate eligibility criteria for ERDF and ESF:

40. Technical Assistance
Technical Assistance funding supports administration and delivery of ESIF Operational Programmes, ensuring that the activities which fall within the scope of these Programmes are managed, monitored and evaluated in line with EU regs
National and local call worth £60m across ERDF and ESF