Iain DerrickERDF Secretariat ManagerDCLG

ERIP Conference 24th November 2011

North East of England ERDF Competitiveness Programme 2007-13

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•Overview ERDF in the North East 2007-13

•What is on the horizon post 2014?

•Questions?

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North East England ERDF Competitiveness Programme

•Euros 375m / £322m ERDF investment in the period 2007-2013

Local Management Committee•Responsible for the strategic management / oversight of the Programme•Public / Private/ HE / TUC / Voluntary sector representation•Northern Business Forum (NBF) is a member•LEP representation•Chaired by DCLG •Deputy Chair agreed by partners

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NE ERDF Competitiveness Programme• Euros 375m / £322m ERDF investment• Priority 1: Enhancing and Exploiting Innovation• Priority 2: Business Growth / Enterprise promotion

Key objectives• Innovation / competitiveness and technology led sectors• Support for business to start, grow and prosper

New Governance arrangements• Strengthened private sector representation on Local

Management Committee and Programme Executive group• Role for Local Enterprise Partnerships (LEPs)• Deputy Chair role

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2007-2013 in Numbers• £322m ERDF• £202m ERDF financially committed• £120m ERDF spent• 88 projects (live / complete)

Actuals• 1, 321 new SMEs assisted• 3,762 SMEs assisted• 1,985 Businesses created• 6,363 jobs created / safeguarded

Further £120m available for investment up to 2015

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Manufacturing Advisory Service / North East Productivity Alliance (MAS-NEPA)

•£4.2m programme established in 2008•Practical assistance to strengthen productivity and competitiveness

•Strengthening region’s manufacturing sector by:• Safeguarding over 3,000 jobs• Training over 8,500 people• Saving over £50m • Reducing waste and energy consumption

/ carbon emissions

•Experts from MAS NE’s Energy Team visited NORFRAN – manufacturer of high pressure diecastings based in North Tyneside – and saved the company 35% on its annual energy bills by renegotiating contracts, saving over £200,000 and safeguarding around 20 jobs.

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DigitalCity – Tees Valley

•DigitalCity strengthens Teesside University’s innovation and creative support services and builds upon its connections with the region’s digital media SMEs.

•DigitalCity Business has created 120 small businesses

•100% of businesses created survived beyond the first year.

•178 jobs created

•Developing a worldwide reputation for enterprise and creativity.

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Finance for Business: North East

•North East first in England to establish a JEREMIE Financial Engineering Instrument

•Holding Fund £125m (including £59m ERDF / £62m European Investment Bank)

•Since launch in 2010 £22m invested directly levered an additional £26m private sector investment

•159 SMEs assisted to date, 850 by 2014

•792 jobs created / safeguarded, 5000 jobs created by end 2014

•Lasting legacy to the region

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Enterprise

•£80m of ERDF supporting enterprise

•Over 4,000 people helped to explore potential to start own business

•Nearly 2,000 new starts and 750 businesses helped to improve their performance

•For example: Craig Smith set up The Printed Bag Shop after receiving help from The Prince’s Trust’s Enterprising Young People Initiative.• North East Young Entrepreneur of the

Year 2008- 2009• The Princes Trust – 2008 Winner of

Enterprise

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Business Enterprise North East

£28m targeted support to SMEs up to 2012 to ensure growth and survival

•Delivered business support to North East companies through services including Business Link, UKTI and Compete North East

•Business consultancy support for SMEs •Support for business creation •Support for exports•Business consultancy support for SMEs

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• New proposals for EU Structural and Cohesion Funds post 2014 published 6th October (Draft regulations)

• Envisaged that EU resources could be available 2014-2020 to support economic development in current North East Programme area

• EU Cohesion proposals include new ‘transition’ category likely to be of direct benefit to Durham and Tees Valley

• Rest of region to have potential access to ‘Competitiveness’ type funds (More Developed regions category)

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• EU seek to align funding with the EUROPE 2020 Growth Agenda• Smart (innovation / competitiveness)• Sustainable (low carbon economy)• Inclusive (social and territorial cohesion)

• The focus of any future transitional / more developed regions funding will prioritise:• Energy efficiency and renewables• SME competitiveness• Innovation

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Issues still to be resolved - ERDF

• Size of the pot• Distribution / allocation of resources across

Devolved Administrations and England• National or regional programmes?• How to accommodate focus on functional economic

areas rather than administrative areas?• Role for LEPs?• Simplification agenda

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Key themes identified for the UK

•Infrastructure investment•Support for SMEs•Innovation•Employability and skills•Localised regeneration and community economic development•Greater use of Financial Engineering Instruments (FEIs)•Transition to resource efficient, low carbon economy

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Next Steps

•To be discussed by the Council and the European Parliament, with a view to adoption by the end of 2012

•BIS coordinates UK Government input

•Negotiations will run in parallel to EU budget negotiations

•Final allocations by Member State, and lists of eligible regions by category, to be decided after the final adoption of the package

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Questions?