Download 0.4. ICF GHK Funding Strategy

Presentations by ICF GHK on the
European Structural and Investment
Funds for the SEMLEP area
Introductions
Two presentations
 A summary of the ESIF strategy for SEMLEP
 Next steps and how the programme will work
Purpose of the presentations
 To inform
 To validate
 To prepare for the programme
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A reminder of the process
 All LEPs were invited to submit an ESIF strategy by government
First draft 7 October 2013
Second (final) draft 31 January 2014
 All LEPs were given an allocation for the period 2014-20 – SEMLEP
allocation worth c. £75.6m ERDF and ESF, and subsequently
£4.2m of EAFRD
 Government offered match funding through opt-ins (MAS, DWP,
SFA, GA, UKTI, BIG Lottery, EIB)
 Assumption of c. 50% match overall including opt-ins, local and
private sector match
 National rather than LEP specific programme. Cross LEP activity
encouraged
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Presentation One – Summary of the ESIF
An Overview of the South East Midlands Economic Asset Base
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Strengths and Assets
 £39bn economy
 Faster than national employment and housing growth
 Future growth across SEMLEP, especially MK, Luton and Aylesbury
Vale
 Growth sectors (including logistics, food technology, bio technology,
precision engineering)
 International businesses (including Unilever, GM, Lockheed)
 Growth of social enterprise
 Technology and research assets – Cranfield, Silverstone, OU, Millbrook
etc.
 Communications hub – Luton airport, Daventry freight terminal
 Green networks and cultural assets
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Challenges and Market Failure
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Pockets of deprivation (Corby, Luton, Northampton)
Pockets of high levels of youth unemployment
Mixed performance in business start up and survival rates
Lower than national levels of productivity
Variations in high level skills (e.g. 42% Level 4 and above
in Bedford, 14.2% in Corby)
 Digital inclusion issue for low income households
 Broadband deficit (infrastructure and accessibility)
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The SEMPLEP Vision
“The South East Midlands aspires to be amongst the most
innovative, successful and high performing economies in England
by 2020”
By 2020 the South East Midlands has the potential to deliver:
 111,200 new jobs
 As a result GVA is estimated to increase by £10.8bn above the
current level of £38.6bn for the area.
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The SEMPLEP Vision
SEMLEP EU 2014-20 Programme Investment Priorities
Priority 1:
Strengthening and exploiting SEMLEP’s innovation and knowledge assets
Priority 2:
Stimulating enterprise and enhancing the competitiveness of SMEs in target sectors and
markets
Priority 3:
Developing a low carbon economy
Priority 4:
Infrastructure for Growth
Priority 5:
Developing a skilled and adaptable workforce
Priority 6:
Tackling social and economic exclusion
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Priority 1: Strengthening and exploiting SEMLEP’s
innovation and knowledge assets
£10.1m ESI fund allocation
Priority aims
To fully exploit SEMLEP’s knowledge base in Higher Education
Institutes and private sector firms by providing the right environment
and conditions for business to locate, cluster and innovate through
knowledge and technology transfer
Priority 1 Programme Activity Areas are:
 1.1 SEMLEP Growth and Innovation Programme
 1.2 ICT & Digital Exploitation Programme
 1.3 Low Carbon and Technology Innovation Support Programme
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Priority 2: Stimulating enterprise and enhancing the
competitiveness of SMEs in target sectors and markets
£19.9m ESI Fund financial allocation
Priority aims:
 To support entrepreneurship, business development, targeted inward
investment and fund financial initiatives to help improve
competiveness and growth. This will include pre-business start up and
start up support provision and embedding national business support
products, such as Manufacturing Advisory Service, Growth Accelerator
and UKTI
Priority 2 Programme Activity Areas are:
 2.1 South East Midlands Growth Hub
 2.2 SEMLEP Entrepreneurship Programme
 2.3 Finance for business programme
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Priority 3: Delivering a Low Carbon Economy
£6.6m ESI Fund financial allocation
Priority aims:
 To build the market in low carbon environmental goods and
services, non domestic sector deployment of low carbon
technologies, whole place low carbon solutions and low carbon
innovation. The priority also aims to embed low carbon technologies
and promote eco-efficiencies across all business growth activities
Priority 3 Programme Activity Areas are:
 3.1: Low Carbon Resource & Resource Energy Efficiency
Programme
 3.2: Social Housing Retrofit Programme
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Priority 4: Infrastructure for Growth
£6.5m ESI Fund financial allocation
Priority aims:
 To support SEMLEPs aspirations for sustainable economic
growth through developing infrastructure in particular digital
infrastructure (e.g. supporting roll-out of broadband), fit for
purpose business premises and sites, and continued
improvements to the natural environment
Priority 4 Programme Activity Areas are:
 4.1: Buildings for Growth Programme
 4.2: Enhancing Local Infrastructure & Environments
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Priority 5: Developing Skilled and Adaptable
Workforce
£26.6m ESI Fund financial allocation
Priority aims:
 To support activities to develop high-level and mid-tier
technical skills to fulfil needs of key sector SMEs; and support
projects to train people who do not have basic skills and
qualifications needed in the workplace, as well as raise the
skill levels of those currently low skilled
Priority 5 Programme Activity Areas are:
 5.1: High Level Skills for Key Sectors
 5.2: Basic Skills and Employment Programme
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Priority 6: Tackling Social and Economic
Exclusion
£10m ESI Fund financial allocation
Priority aims:
 To ensure that economic successes and growth opportunities
are shared and that economic and social exclusion is tackled.
The priority, in conjunction with other priorities , is focused on
creating employment which is accessible to disadvantaged
areas and to help residents in these areas access economic
opportunities as employees or in self-employment.
Priority 6 Programme Activity Areas are:
 6.1: SEMLEP Social Inclusion Programme
 6.2: SEMPLEP Community Led Economic Development
Programme
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Rural Project Opportunities
 Business opportunities around renewable energy and
traditional building technologies
 High quality food products for specialist markets
 Tourism projects (attractions, bed and breakfast
accommodation)
 Creation of micro businesses
 Rural heritage and conservation
 Small scale training schemes in rural skills
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Key Outputs
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4200 enterprises supported (1000 new enterprises)
1500 new jobs created
560 enterprises developing new products (new to the firm)
395 enterprises involved in collaborating with research
institutions
 365 enterprises achieving business resource efficiency
 37000 ESF participants (13000 unemployed, 5500 inactive,
11000 employed, 7500 15-24)
Output calculation is work in progress and does not currently
include GA, UKTI or MAS opt-ins
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Current Match Funding Assumptions
 Private sector - £4.1m ERDF: £4.9m ESF
 Government opt-ins - £11.75m ERDF: £20.9m ESF
 Other public national - £1.6m ERDF: £0.6m ESF
 Civil society – £125k ERDF: £1.7m ESF
 Public local - £20.2m ERDF: £9.7m ESF
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