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EMC Technical Assistance
Project
Andrew Pritchard
Director of Policy &
Infrastructure
What is it all about?



A technical assistance project led
by East Midlands Councils to
provide an evidence base for
future EU funding
To make sure that we maximise
the potential of EU investment
across the East Midlands
Strong support from DCLG &
Council Leaders for the project
Localisation of EU funding
Establishment of a national ‘EU Growth
Programme’
 LEPs to develop EU investment strategies
 Each LEP to be given a ‘notional
allocation’ of EU funding to prioritise
 Payments to be made centrally
 Notional allocations will be reviewed
against performance from 2017 onwards

“Show me the money”
NEP: €55.0 million
 SEMLEP: €88.3 million
 UK Local Growth Fund = £2 billion

UK Local Growth Fund
New Homes Bonus
LA Major Transport Scheme
Local Sustainable Transport Fund
Integrated Transport Block
Further Education Capital Fund
ESF Skills Match Funding
£400m
£819m
£100m
£200m
£330m
£170M
Emerging UK Priorities
•Innovation
•SME Competitiveness
•ICT
60% + of ERDF
•Climate Change
•Environment
•Sustainable Transport
No Minimum spend
•Employment
•Skills
•Social Inclusion
80% + of ESF
•Low Carbon Economy
20% + of ERDF
Also…



Minimum 20% of combined
ESF/ERDF on ‘social
inclusion’
Gender equality, equal
opportunities & nondiscrimination
Sustainable development
Programme Timescales
 September
2013: Draft
LEP EU Investment
Strategies
 January 2014: finalise
strategies
 March 2014: new EU
Programme starts
 2017 – first review of
notional allocations
Current Experience



Spend under the current
ERDF Programme has been
slow
Too many small projects difficult to see a strategic
impact
Original operational
programme did not fully
meet local needs - e.g.
Broadband
Future Challenges



1 region replaced by 7
LEPs – 4 overlapping
Pressure for early spend
on projects that will deliver
clear outcomes
LEP notional allocations to
be reviewed in 2017under-performance could
be penalised
Threats v Opportunities
What are we going to do?
Facilitate a series of consultation events
 Develop an evidence base (or ‘socioeconomic framework’) to inform both the
UK Growth Programme and individual LEP
Strategies – working with NTU.
 Highlight potential areas of collaborative
activity that can maximise strategic impact
and reduce ‘transaction costs’

Events Diary
1st July: Greater Lincolnshire LEP
 5th July: Leicester & Leicestershire LEP
 9th July: Competitiveness Round Table
 16th July: NEP/SEMLEP
 22nd July: D2N2
 25th July: Green Economy Round Table

Project Timescales
 End
of July 2013: Interim
Report
 September 2013: draft
Framework
 December 2013 – final
Framework
 January - June 2014
Awareness raising
Key Outcomes
“It’s the economy, stupid”
More Jobs
 Less Worklessness

Your mission today…
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To think about how best
EU funding could be used
across Northamptonshire
To highlight areas or
issues where wider
collaboration might be
helpful.
To ask if you do not
understand.
East Midlands PA3 Project
Socio-Economic Evidence – the future of European
Funds in Northamptonshire
16th July, 2013
Chris Lawton
Nottingham Business School
Project Rationale and Objectives
• The project aims to provide socio-economic evidence
to help identify synergies, linkages and common
challenges across LEPs within or overlapping the East
Midlands
• To identify opportunities for collaboration across the
themes identified in the ‘Europe 2020’ strategy
• The UK Government would:
“like to see Local Enterprise Partnerships working with each
other to deliver a bigger impact… and achieve economies of
scale wherever possible”
Source: HM Government, April 2013. ‘Technical Annex: Preliminary guidance to Local Enterprise
Partnerships on development of Structural & Investment Fund Strategies.’ paragraph 2.8, p. 4.
Local Enterprise Partnerships within or overlapping the East Midlands Region
Contains Ordnance Survey data © Crown copyright and database right, 2013.
Economic Context
140
Chart 1: Headline GVA per head indices (UK=100) NUTS2, 2011
130
120
110
100
90
80
70
60
50
40
2008
Source: ONS Crown Copyright, 2012. ‘Regional Gross Value Added, 2011’.
2011
Economic Context
Chart 2:Employment rate (% working age residents), 2012
80
78
76
74
72
70
68
66
64
62
2008
2012
Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2008 and January-December 2012. From
NOMIS [accessed 24th June, 2013].
EU Thematic Objective: SME
Competitiveness
• The SME environment remains difficult, but some signs of
improvement:
– Business death rates have fallen since 2009 and business birth
rates have increased
– Survival rates for new businesses have significantly decreased
since pre-recession
– Small businesses (<50 employees) have been more likely to
retain staff but cut/freeze wages and investment, with resulting
lost productivity
– Large businesses (>250) more likely to cut staff whilst
maintaining investment and productivity levels
• Lenders report that demand for credit remains low
• Despite some structural improvements, firms seeking credit
continue to report difficulties in the supply of finance
• Exports have been growing moderately in recent months
EU Thematic Objective: SME
Competitiveness
Chart 3: Business Births and Deaths (as a % of end-of-year count of active
enterprises), 2011
12
10
8
6
4
2
0
Birth Rate
Death Rate
Source: ONS Crown Copyright, 2012. ‘Business Demography 2011 – Enterprise Births, Deaths and Survivals.’
SME Competitiveness: Business Birth Rate (as a % of endof-year count of active enterprises), 2011
Source: ONS Crown Copyright, 2012. ‘Business Demography
2011 – Enterprise Births, Deaths and Survivals.’
Contains Ordnance Survey data © Crown copyright and
database right, 2013.
EU Thematic Objective: SME
Competitiveness
Chart 4: Two year business survival rate from year of birth (%)
84
82
80
78
76
74
72
70
UK
East Midlands
68
2006
2007
2008
2009
Source: ONS Crown Copyright, 2012. ‘Business Demography 2011 – Enterprise Births, Deaths and Survivals.’
EU Thematic Objective: Innovation
Chart 5: Innovation inputs: Business Enterprise Investment in R&D (as a % of total
workplace GVA), 1999 and 2009
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
United
Kingdom
North East
North West
Yorkshire
and the
Humber
East
Midlands
West
Midlands
East of
England
London
South East
South West
1999
2009
Source: Department for Business, Innovation and Skills, 2012. ‘Regional Economic Performance Indicators
– Live Tables’.
EU Thematic Objective: Innovation
Chart 6: Employment in High and Medium-High Technology Industries (% workbased employment), 2011
6
5
4
3
2
1
0
Source: ONS Crown Copyright, 2012. ‘Business Register and Employment Survey, 2011.’ Data accessed
from NOMIS [17th June, 2013] and analysed under Chancellor’s Notice Ref NTCBRES11-P0537.
Innovation: Employment in High and Medium-High Technology
Industries (%), 2011
Source: ONS Crown Copyright, 2012. ‘Business Register and
Employment Survey, 2011.’ Data accessed from NOMIS [17th
June, 2013] and analysed under Chancellor’s Notice Ref
NTCBRES11-P0537.
Contains Ordnance Survey data © Crown copyright and
database right, 2013.
EU Thematic Objectives: Employment, Social Inclusion
and Skills
Chart 7: Unemployment Rate (% 16+ resident population), 2012
12
10
8
6
4
2
0
Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2012. From NOMIS [accessed 14th June,
2013].
Employment, Social Inclusion and Skills:
Unemployment – model-based estimates (%), 2012
Source: ONS Crown Copyright, 2012. ‘Model-based estimates
of unemployment’, January-December 2012. From NOMIS
[accessed 17th June, 2013].
Contains Ordnance Survey data © Crown copyright and
database right, 2013.
EU Thematic Objectives: Employment, Social Inclusion
and Skills
Chart 8: Trends in the Unemployment Rate (% 16+ resident population), 2007-2012
Northamptonshire
10
Greater Cambridge & Greater Peterborough
8
South East Midlands
Leicester and Leicestershire
6
East Midlands
4
United Kingdom
Greater Lincolnshire
2
D2N2
Sheffield City Region
0
2007
2008
2009
2010
2011
2012
Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2007 to January-December 2012. From
NOMIS [accessed 14th June, 2013].
Employment, Social Inclusion and Skills: Resident Adults
Qualified to a Level 4 (first degree) and above (%), 2012
Source: ONS Crown Copyright, 2012. ‘Annual Population
Survey’, January-December 2012. From NOMIS [accessed 17th
June, 2013].
Contains Ordnance Survey data © Crown copyright and
database right, 2013.
Key Points
• Some improvements (e.g. business births and deaths),
but overall economic context remains challenging
• North-south or east-west divides (depending on topic)
exacerbated by the recession:
– Unemployment/Social Exclusion: north-south divide
– Enterprise and Skills: north-south and east-west
– Innovation: east-west (M1 corridor)
• Importance of manufacturing and large firms in
regional innovation activity
• Enterprise, innovation and low-carbon themes will be
explored further in x2 regional round-tables
Common Issues: Northamptonshire
Enterprise Partnership
SME Competitiveness
Innovation
Employment, Social
Inclusion and Skills
GCGP, LLEP and SEMrelative resilience in
employment/output 20082012
D2N2 and LLEP – transport
equipment in D2N2 & LLEP
has potential innovation
linkages with high tech
manufacturing in Daventry
and South
Northamptonshire
(motorsports and a range of
other specialist engineering
firms)
Pockets of unemployment
in Corby, Wellingborough
and Northampton –
although not to the extent
of D2N2 or SCR
SEM, Greater Lincolnshire,
and LLEP –high business
birth rates/survival rates
Construction – important
employer across the East
Midlands
LLEP, Greater Lincolnshire
and GCGP – Food & Drink
Parts of GCGP and Greater
Lincolnshire – high rates of
employment combined
with lower skills/earnings
suggest persistence of a
‘low pay low skill
equilibrium’
The view from…
The view from…
Thank you for coming and have
a safe journey home!