EU Programme
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1 EU Programme January 2015 Alan Welby, Executive Director, Liverpool City Region LEP 42&
2 Background Significant EU Programmes in Merseyside since 1994 Two dedicated programmes for Merseyside Objective One Programme ( 560m) Objective One Programme ( 920m) MSIF (first use of ERDF in EU for venture capital funds), Pathways and community development, Arena and Conference Centre, Airport expansion, School of Tropical Medicine, Wirral Int Business Park, Knowsley Industrial Estate, Skillworks Current sub-regional / regional programme ( ) Ringfenced allocation within the NW England Programme ( 530m 320m) " Funding is fully committed, able to spend up until June / Sept 2015 " Possible scope for limited reallocation of any underspend Formal evaluation (accepted by EC and UK Government) shows that EU funding has supported the creation of 50,000 jobs in Merseyside / LCR EU Context Thematic approach (across all of the EU), concentrated on: " Innovation, research, technology development ) " Competitiveness, SMEs ) mainly " ICT ) ERDF " Transition to Low Carbon Economy ) " Employment (particularly youth) and Skills ) mainly " Social inclusion (20% of ESF) ) ESF 60% intervention rate for Transition Regions (Knowsley, Liverpool, Sefton, St Helens, Wirral), 50% in Halton Intention to develop closer links to other EU funding, including rural (LEADER) and pan-european programmes (such as Horizon 2020) 43&
3 UK Context Govt asked LEPs to lead on EU Investment Strategy (ESIF) LEP led programmes / activities to focus on local need and opportunity reflect and align with national policy and priorities LEP and local partners working together (regulatory) Local EU Strategies sit within the National Growth and Job strategy Single pot ( April 2015) LEPs to produce a Local Growth Plan / Competitive element Local Growth Teams (DWP and DCLG) to support delivery of ESIF and ensure compliance Opt-in prospectuses (received July 2013) to align with national initiatives / delivery / match funding LCR Allocation LCR given EU allocation of 220.9m (c. 190m), comprising 112.3m ERDF and 77.7m ESF circa 10% of this is allocated for Halton This is roughly 1/3 of amount received in period The LCR allocation equates to 147 per head of population, which is the lowest in NW, and half the amount per head awarded to the North East LCR joined with Sheffield City Region to seek a Judicial Review into the allocations, arguing that Government had used a flawed methodology when making allocations Through the court process we have been provided with UK Govt estimates of how the EU budget is broken down by region in the UK and this shows that the Merseyside/LCR element of the UK allocation was circa 350m ( 280m) Despite this we lost the JR (Feb 2014), lost an appeal to Court of Appeal (June 2014), and await outcome of appeal to the Supreme Court (Oct 2014) 44&
4 What UK Government wants Collective submissions from 39 LEPs and can come together to create a national ERDF and ESF programme A strong emphasis on economic growth (to create jobs) international trade (to help balance of trade) low carbon / energy (sustainability and climate change agenda) Greater involvement of the private sector developing local strategy / priorities programme delivery (particularly private sector match funding) Opportunities for Govt Depts (BIS, DWP etc) to access ERDF and ESF by asking LEPs to opt-in to national initiatives More investment and less grant Increased use of revolving funds, encouraging LEPS to use Financial Instruments Continued focus on about claw back and misuse of EU funding with tight control of programme management and project approvals LCR Approach The reduced levels of funding demand a significantly different programme Cut our cloth accordingly Acts as a catalyst Unlocks major schemes Need for focus and fewer projects Challenging but realistic in delivery terms Remains a significant funding package Moving towards a commissioning model 45&
5 Development of the ESIF Stakeholder events (April & September 2013) wider buy-in Bottom up approach: Initial Thematic responses led by Thematic leads Distilled into 5 Liverpool City Region Portfolios 5 Portfolio drafting workshops (July 2013) 5 Portfolio consultation workshops (August 2013) 5 Portfolio delivery workshops (December 2013) Leadership / challenge by EU Sub group and Advisory Group Draft ESIF submitted to Govt early October 2013 Final ESIF submitted to Govt end Jan 2014 ESIF signed off by Govt mid 2014 Portfolio Approach Blue/ Green Economy Business Economy Innovation Economy Inclusive Economy Place and Connectivity 46&
6 Portfolio Approach Reflects LCR opportunities and challenges Integrated and focused approach Aligned to City Region governance Guards against unpicking Clear LCR narrative to Government and partners Based on long established evidence base Seamless fit into Local Growth Plan Challenge to partners to avoid silos ESIF Budget (Portfolios) in s Portfolio ERDF ESF Totals Blue Green 2 3m 28m Business 32m 8m 40.8m Innovation Inclusive 3m 61.7m 64.7m Place & Connectivity 2-2 Total 112.3m 77.7m 190m 94 47&
7 Budget (Blue Green) in s Blue / Green ERDF ESF Totals Energy Supply chain Infrastructure Infrastructure (FIs) Skills 10m 3m Total 2 3m 28m 95 Budget (Business) in s Business ERDF ESF Totals Winning new business 7m Start up and entrepreneurship 8.8m Business support, investment readiness Finance for business FI Skills 7m 10m 8m Total 32m 8m 40.8m 48&
8 Budget (Innovation) in s Innovation ERDF ESF Totals Infrastructure (grant) Infrastructure FI Business start and early growth 3.7 Finance for business FI Business growth 6. Higher level skills Promotion of LCR 1.2 Total Mi& Liverpool& Marine Energy Deployment and Operations Centre& Liverpool& Knowledge& Quarter& Stra=fied& Health& Health and Wellbeing! Advanced Manufacturing! Materials& Innova=on& Factory& Manufacturing& Technology& Centre& Hydrogen& Network& Solutions for sustainable growth! Creative and Digital! Liverpool& Plug&and& Play& SciWTech& Daresbury& Innova=on& Exchange& Sensor& City& Big&Data& 98 49&
9 Budget (Inclusive) in s Inclusive ERDF ESF Totals Youth and NEETS Adults into work Social growth and connectivity 30m 20m 10m Local Impact Fund FI 3m 1.7m 3m 61.7m 64.7m Total Budget (Place and Connectivity) in s Place and Connectivity ERDF ESF Totals Business infrastructure (gap funding) 6m Infrastructure FI 9m Transport Infrastructure 7. Place marketing 2. Total &
10 Draft Outputs Output Number Enterprises supported New jobs created 1,665 2,000 New companies established 600 Companies involved in research collaboration 110 Amount private sector funding levered 77m Reduction of GHG emissions (Tonnes) 80,000 Number of ESF beneficiaries/ participants 56,000 ESF participants unemployed ESF participants inactive ESF participants employed ESF participants years old 39,000 11,000 6,000 28,000 Financial Instruments Building on previous experience (North West Fund / MSIF / Chrysalis) 24m infrastructure / energy (JESSICA) Up to 1 financial assistance for businesses (JEREMIE) 3m financial assistance for social enterprises / charities (Local Impact Fund) Total FI Spend: 42 million Evaluations of current JESSICA and JEREMIE programmes are underway Local Impact Fund pilot project 51&
11 Opt-ins Opt-in model to allow LEPs and partners to join with national organisations/programmes LEPs commit part of funds to national programme In return local areas receive match funding / administrative support Critically, local areas have role in designing and commissioning activity Organisation/ Programme Support Amount DWP Employment ESF tbc Big Lottery Fund Skills Funding Agency Social inclusion & combating poverty Skills 2. ESF tbc 24m ESF tbc Rural Development Programme The Rural Development Programme comprises European Agricultural Fund for Rural Development (EAFRD) and LEADER Liverpool has been allocated 339,995 EAFRD for the period and the LCR EU Sub-Committee will have responsibility for overview of EAFRD alongside ERDF/ESF. The Liverpool LEADER programme has been awarded circa 2.1m. LEADER has it s own management committee The challenge is align Rural Development programme with mainstream ERDF / ESF programme. The chair of the LEADER management committee has been invited onto the LCR EU subcommittee to help achieve this. 52&
12 Timeline / Next Steps UK Government Feedback from Govt on all 39 ESIFs April 2014 Govt submit draft ERDF and ESF Operational Programmes to the EC July 2014 UK Partnership Agreement signed off - October 2014 Consultation and negotiation with the EC on the Operational Programmes commenced Autumn 2014 ERDF and ESF Operational Programmes agreed Feb 2015?? First call for projects March / June 2015 Liverpool City Region Develop Commissioning/Bidding Framework Shadow ESIF Committee & EU Delivery Group established Work with DCLG on business process / programme management Publish the LCR ESIF and produce summary brochure 53&
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