EU COMMON STRATEGIC FRAMEWORK FUNDS IN

ENGLAND 2014-2020

GOVERNMENT PROPOSALS7 DECEMBER 2012

HMG’s OBJECTIVES FOR TODAY

Present the Government’s latest thinking for an EU Common Strategic Framework (CSF) Funds delivery model and get feedback from you to inform its further development

Listen to your views

Understand from you your plans and aspirations for how to use the CSF Funds

€147.2 billion = 1.12% of EU gross national incomeCitizens, freedom,

security and justice1%

Administration6%

Sustainable growth:

Jobs, competitiveness,

regional development

46%:of which

STRUCTURAL FUNDS 36% (€53

bn)

The EU as a global player:including development aid

6%

Natural resources:

Agriculture & environment

41%

2012 EU BUDGET (commitments)

‘ALLOCATED’ TO THE UK: STRUCTURAL FUNDS, RURAL DEVELOPMENT &

FISHERIES FUNDS

EUROPEAN REGIONAL DEVELOPMENT FUND (£2.8 bn 2007-2013 England)

Innovation and knowledge based economy (incl commercialisation of research and technology transfer)

Stimulating enterprise and supporting SMEs Sustainable Development & low carbon technologies Building sustainable communities – incl regeneration10 programmes in England managed by DCLG (previously RDAs)

EUROPEAN SOCIAL FUND (£2.5 bn 2007-2013 for England) Helping unemployed and inactive people into work (especially

disadvantaged groups such as ex-offenders, young people NEET and unskilled people)

Improving workforce skills and redundancy support 1 English programme managed by DWP

EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (£3.7bn 2007-2013 for England)

Improving the environment and countryside; Improving the competitiveness of the agricultural and forestry sector ; Quality of life in rural areas and diversification of the rural economy. One English programme / DEFRA.

EUROPEAN FISHERIES FUND (£40m for England in 2007-2013)

Smart, green fisheries (to address discards); aquaculture businesses ; coastal communities dependent on fishing. 1 UK programme / DEFRA.

‘ALLOCATED’ TO THE UK (continued): STRUCTURAL FUNDS, RURAL DEVELOPMENT &

FISHERIES FUNDS

CHANGING TIMES- NEGOTIATIONS FOR 2014-2020 -

Economic landscape : recession & Eurozone crisis

EU budget & Structural Funds in particular :

Increased focus on driving the EU forward vs global competitors : EU 2020 (external)

Concentration of EU investment on top drivers of EU growth and jobs & delivering UK National Reform Programme

More flexibility to align EU funds to increase impact (regional, social, rural and fisheries)

Streamlining red tape

WHAT’S HAPPENED SO FAR……

Informal consultation (April 2012)

Bespoke events for specific audiences eg. universities, local authorities, voluntary sector, fund specific management committees, etc (Spring-Autumn 2012)

Development of an initial delivery model and Ministerial discussion (November 2012)

Road testing the approach (today!)

Refining the model for formal consultation 2013

WHAT YOU HAVE TOLD US SO FAR

Preference for place based programmes with flexible geographies

Any approach must be responsive to local need and national priorities

Simplification of fund management

Integrated programming, in particular in relation to the Structural Funds (ERDF and ESF)

Better co-ordination of match-funding & co-financing across the public sector

GROWTH PROGRAMME THEMESTop priorities

Research, technological development and innovation – esp. commercialisation

Raising SME competitiveness – esp re exports

Shift to low-carbon economy – esp energy efficiency & renewable technologies

Employment & skills (inc. social inclusion)

Other objectives

Climate change adaptation, risk prevention & management

Environmental protection & resource efficiency Sustainable transport and removing network

bottlenecks Access to & use of ICT

GROWTH PROGRAMME ORGANISING PRINCIPLES

National and local

priorities aligned

Common standards and

transparent accountabilities

BETTER FOCUS

HIGHER IMPACT

INCREASED GROWTH

Local decision making and

drive

A single set of targets and milestones

across England

EU regulatory requirements met and financial risk

minimised

Lower cost & simplifies

administration

Complex EU funds packaged as a coherent and

consistent programme

Variable geographies

PROPOSED DELIVERY ARRANGEMENTS

Projects

Community Led Local Development, including Leader

and FLAGs

Maritime and

FisheriesProgramme

(EMFF)

RuralDevelopmentProgramme

(EAFRD)

Growth Programme(ERDF, ESF & EAFRD)

GROWTH PROGRAMME An “EU Growth Programme” to be financed by ERDF and

ESF with a contribution from EAFRD A single “EU Growth Programme Board” incorporating a

joint Programme Managing Committee for ESF and ERDF LEPs to be the fundamental building blocks receiving a 7

year notional allocation subject to periodic performance reviews

LEPs to identify their preferred EU investment prospectus as part of their wider growth strategy, for agreement by the Growth Board. LEPs will not take on project delivery accountabilities, however but retain a strategic oversight role in cooperation with local partners.

Government departmental teams to work as “CSF Area Growth Teams” to support LEPs in their strategic role. All final funding decisions to be dependant upon due diligence by fund Managing Authorities.

National co-financing initiatives to take account of local needs

‘ITIs’ may be an option in a limited number of places - where this arrangement will deliver better value, higher impact results.

Greater alignment of eligibility rules for projects across the country

Improved and harmonised guidance to applicants

Managing authority to ‘hide the wiring’ where projects draw on more than one fund

GROWTH PROGRAMME: A SIMPLER SYSTEM

RURAL DEVELOPMENT PROGRAMME

Securing environmental benefits

Boosting the competitiveness and growth of agriculture and forestry sector

Strengthening rural communities

MARITIME AND FISHERIES PROGRAMME

Smart, Green Fisheries tackle fish ‘discards’ fisheries which are less

damaging to the marine environment and support innovation

Smart, Green Aquaculture

Sustainable Development of Fisheries Areas reverse the decline of communities dependent on fishing

EU PRIORITIES Europe 2020: “smart, sustainable and inclusive growth”

National Reform Programme Commercialise new technologies Finance SMEs Invest in low carbon power, infrastructure and new ‘green’

markets Address NEETs & higher/intermediate skills gaps

Common Strategic Framework Align CSF funds to improve coherence, impact, efficiency and

effectiveness

Thematic Concentration 80% ERDF for innovation, SMEs, low carbon (ICT?) - except

Cornwall (tbc) 20% ESF &ERDF for social inclusion (tbc)

Commission position paper for the UK – 6 December

IDEAS INTO REALITY : CSF NEGOTIATIONS PROCESS

EU Commission

tests & launches

proposals

Ministers agree

domestic delivery

Go live

Informal consultation

Develop UK EU budget negotiating positions

Develop UK CSF

negotiating positions

UK negotiates EU budget

Develop programmesFormal

consultation

Identify, develop and test policy options

UK negotiates with other EU countries, European Parliament and Commission

EU - Eurozone crisis; downward pressure on EU budget; upward pressure on CSF funds to deliver results UK – pressure to drive high impact growth; localism; city deals; CSR;

ministerial change & elections

WHAT DO YOU THINK?!