North East European Structural and Investment Funds

February 2015

North East Local Enterprise Partnership

The Strategy

An Agenda for Growth - “more and better jobs” – with clear vision, objectives and actions

Substantial investment proposals

Basis for a Growth Deal for the area, including the Local Growth Fund

European Structural & Investment Funds Strategy delivers on local aims

Context: Strategic Economic Plan

Employment rising (NE)- Jul-Sep 2014, 27,000 more employed than Jul-Sep 2013

Labour productivity (GVA per hour worked) growing at fastest rate in the country

GVA per head growing among highest rates in the country

79% of jobs in the area provided by the private sector (72% in 2009)

Still shortage of private sector jobs to provide a balanced and sustainable economy.

The challenge is not just the number of jobs but the quality of these jobs.

Educational achievement has been on a steady rise since 2000 - but need to increase volume of higher level skills

Economic context

Vision and objectives

By 2024 our economy will provide over one million jobs

Halve the gap between the North East and the national average (excluding London) on:

• Gross value added (GVA) per full time equivalent (FTE)• Private sector employment density• Activity rate

Fully close the gap on employment rate, • Scale and quality of employment matching an increasingly better

qualified and higher skilled workforce.

1. Innovation

2. Business support and access to finance

3. Skills

4. Employability and inclusion

5. Economic assets and infrastructure

6. Transport and digital connectivity

Strategic Economic Plan Theme

Local enterprise partnerships were asked to develop ESIF strategy responding to local needs in line with European funding framework

European Structural and Investment Funds

• European Regional Development Fund • European Social Fund• European Agricultural Fund for Rural Development• Youth Employment Initiative

Split of ESIF in North East by fund, £m

Split of ESIF in North East by fund & area £m

ERDF £m

ESF £m

Innovation (£53.2m)

Creating competitive advantage; open innovation, smart specialisation

Building collaborative research between enterprises, research institutions and public institutions

Bringing new products and business processes to the market, including those linked to ‘key enabling’, the ‘eight great’ and health science technologies

Development of innovation space to support commercialisation of research and development

Includes social innovation and health

SME competitiveness (£112.1m)

A2F for SMEs to support growth and innovation

Provide coordinated business support

Support the development of strategic sites

Incorporates entrepreneurship and social enterprise

Broadband infrastructure (Durham, £4m)

Address broadband funding gap and ensure opportunities for growththrough digital connectivity are exploited

Low carbon and green infrastructure (~£75m)

Sustainable Growth Study

Built Environment and Business Energy EfficiencyLow Carbon Supply ChainsInnovative Technologies and Renewable Energy Generation

Green Infrastructure Improvements

Sustainable Urban Development

ESF- Inclusive growth study- ESF and Opt-ins- match provided, process managed

Employability (£53.3m)

- Provide additional and more intensive support to help people develop the skills and aspirations needed to move towards work, enter work and to progress into work

- Help older workers, workless people and those facing redundancy to upgrade their skills, learn new skills or re-train to enter, re-enter or stay engaged with the labour market and adapt to new market conditions

- Young people- Northumberland and Tyne and Wear/Durham

Social inclusion (£44.5m)- Tackle multiple barriers- Support for those with protected characteristics- CLLD

Skills (£113.6m)

Support for intermediate, technical and high level skills and studentships especially linked to areas of economic advantage

Support collaborative projects, placements, internships

Support for activities to start and grow a business

Better links between businesses and educators

EAFRD (£10.5m*)

Rural Business Growth Fund, Strategic Economic Infrastructure

Tourism

Running to a different timetables to ERDF/ESF

LEADER

Durham Coast and Lowlands; North Pennine Dales; Northumberland Coast and Lowlands; Northumberland Uplands

Financial instruments

JEREMIE: Current JEREMIE now to 2015 end. North East LEP and TVU working together to deliver £160m fund from 2016

NEIF: Recognising benefits of loan-based funds to meet infrastructure needs. To consider best deployment of ERDF, ex-ante evaluation to support market assessment will help determine scope and demand

Application process (ERDF, ESF)

Call published in line with local strategy, applicants prepare and submit outline application

Calls will address a specific local need or opportunity and fit one priority or thematic objective

Some will stipulate single award/defined number of awards and budget

Outline application assessed against gateway criteria and core selection by MA and must meet local strategic context.

Need to ensure eligible match, meeting outputs, value for money

Local sub committee provides local intelligence and understanding of priorities for calls and project applications.

Timescales

Potential limited early calls launched - March 2015 (to be confirmed)

Anticipated sign-off of national Operational Programmes – June/July 2015 (subject to change)

Most calls published and opt-ins launched - summer 2015

Questions?