EU SIF Update:
European Opportunities 2014 - 2020

September 2015

A.Background and context

The European Social Fund (ESF) and the European Regional Development Fund (ERDF) are part of the Structural and Investment Funds Growth Programme for England (2014-2020).

ESF will deliver the Growth Programme’s priorities to increase labour market participation, promote social inclusion and develop the skills of the potential and existing workforce.

-The ESF allocation for Cornwall and the Isles of Scilly is circa €166 million (approximately 28% of the total allocation of ~ €603 million)

ERDF will deliver the Growth Programme’s priorities to support smart, sustainable and inclusive growth.

-The ERDF allocation for Cornwall and the Isles of Scilly is circa €437 million (approximately 72% of the total allocation of ~ €603 million)

In addition, to ESF and ERDF, the EAFRD fund will have a smaller allocation of £9.4m which will align to the wider Cornwall and Isles of Scilly Growth Programme.

B.The National Update

I.The ESF Operational Programme

The ESF Operational Programme currently undergoing final agreement with the EU Commission. See here for the latest version of the Operational Programme:https://www.gov.uk/government/publications/european-social-fund-draft-operational-programme-2014-to-2020

II. The ERDF Operational Programme

The ERDF Operational Programme has been signed off. The document can be found at:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/342297/ERDF_Operational_Programme.pdf

C.What are the Investment Opportunities?

I.ESF

According to the current draft ESF Operational Programme[1](the document that outlines what will be delivered for the money) ESF will be delivered through 2 Priority Axes:

  • Priority Axis 1- Inclusion Labour Markets(€116m circa £83m [2])

This Priority Axis aims to increase participation in the labour market, improve social inclusion and social mobility and support young people into employment, education or training

  • Priority Axis 2 – Skills for Growth(€50mcirca £35m[3])

This Priority Axis aims to enhance equal access to lifelong learning and improve the labour market relevance of education and training systems

Work to identify ESIF priorities and investment activities specific to C&IoShave been developed by the Employment and Skills Board (ESB). The ESB is a private sector led group and includes businesses as well as representatives from employment, skills and the third sector.

Unlike ERDF, much of ESF provision will be procured through ‘opt-in organisations’(up to 70% of the total allocation will be invested by these organisations who will match fund this through their own resources). There are 3 opt-in organisations involved in the 2014-2020 Programme:

  • Department of Work and Pensions
  • Big Lottery Fund
  • Skills Funding Agency

All three ‘Opt Ins’ will work with the Cornwall and Isles of Scilly Growth Programme.

II.ERDF

The €437m will be invested within the following areas:[4]

  • Priority Axis 1- Promoting Research and Innovation(circa £65m)

This Priority Axis aims to increase the amount of research and development activity and promote innovation within the business base

  • Priority Axis 2- Information and Communication Technology(circa £14m)

This Priority Axis aims to extend broadband and high speed networks and support the development of ICT products and services and extend its use

  • Priority Axis 3- SME Competitiveness(circa £122m)

This Priority Axis aims to support micro, small and medium sized businesses more competitiveness. There is a focus on supporting new start-ups and existing businesses

  • Priority Axis 4- Supporting a shift to a low carbon economy in all sectors(circa £41m)

This Priority Axis aims to support the production and distribution of renewable energy, to support energy efficiency and renewable energy use in public infrastructure and to promote research and innovation in relation to low carbon technologies

  • Priority Axis 5- Climate Change Adaption (circa £8m)

This Priority Axis aims to support initiatives that reduce flood risk

  • Priority Axis 6- Protecting the Environment and Promoting Resource Efficiency(circa £9m)

This Priority Axis aims to provide investment to protect the environment and to promote innovative technologies

  • Priority Axis 7- Sustainable Transport in Cornwall and IoS(circa £41m)

This Priority Axis will specifically support investment in the A30, the mainline rail network and also promote sustainable modes of transport

Note: this Priority Axis is specifically for C&IoS and, unusually, identifies ‘projects’. These are the A30 Carland to Chiverton; mainline rail signalling upgrade; West Cornwall Transport Interchange; an open call for the provision of electric vehicle infrastructure; an open call for the provision of a small number of multi modal hubs

  • Priority Axis 8- Social Inclusion & combating poverty and discrimination (via Community Strategies)(circa £11m)

Locally based Community Strategies are to be developed that cover a small percentage of C&IoS. Local Management groups will then provide funding at the community level to support social inclusion and poverty and discrimination projects and also small scale projects that meet the ERDF Priority Axis shown above

Note: these community strategies are referred to as CLLD (Community Led Local Development) Strategies. They will be managed by Community Led Local Development Local Action Groups (LAGs) and collectively cover the whole of Cornwall. Investment will be targeted at a small number of super output areas with high levels of deprivation (lowest 30%). Locally developed strategies will be prepared to determine local priorities for investment – but these priorities must accord with the Priority Axis outlined above. This could generate locally based investments in any of the areas discussed above.

D.The Cornwall and Isles of Scilly European Structural and Investment Fund Strategy (also to be known as the C&IoS ITI Strategy)

I. Alignment of the Cornwall and Isles of Scilly Strategy against the Operational Programmes

The Cornwall and Isles of Scilly ESIF Strategy (soon to become the Cornwall and Isles of Scilly ITI strategy) provides the strategic investment priorities for our area which sit within the ESF and ERDF Operational Programmes. It also details the local EAFRD (rural) investment priorities.

The strategy is based upon three ‘pillars’:

  1. Future Economy
  2. Growth for Business
  3. Conditions for Growth

These three pillars of the C&IoS strategy map against the ERDF and ESF Operational Programmes in the following way:

ERDF Operational Programme / C&IoS ESIF Strategy / ESF Operational Programme
Priority Axis 1
(Investment Priority 1a[5] and 1b) / Future Economy / Priority Axis 2
(Investment Priority 2.1)
Priority Axis 4
(Investment Priority 4a, 4c, 4e, 4f)
Priority Axis 3
(Investment Priority 3a, 3c and 3d) / Growth for Business / Priority Axis 2
(Investment Priority 2.2)
Priority Axis 2
(Investment Priority 2a and 2b) / Conditions for Growth / Priority Axis 1
(Investment Priority 1.1 & 1.2 & 1.4)
Priority Axis 5
(Investment Priority 5b)
Priority Axis 6
(Investment Priority 6d and 6f) / Priority Axis 1
(Investment Priority 1.5)
Priority Axis 7
(Investment Priority 7a and 7c) / Priority Axis 2
(Investment Priority 2.1)
Priority Axis 8
(Investment Priority 8d)

E.The Procurement Routes, Call Process & Application stages

There are two routes for securing European funding in the 2014-2020 Programme.

Route 1 – Opt-ins (ESF only)

Route 2 – Open calls (ESF and ERDF)

Opt-Ins

A minimum of 70% of the ESF Programme will be delivered via National Opt-in providers:

  • Department for Work and Pensions (broadly delivering against employment objectives)
  • Skills Funding Agency (broadly delivering against skills activity)
  • Big Lottery Fund (BLF) (broadly delivering against social inclusion activity)

There are several benefits to working with opt-in organisations:

  • They pre-match all activity which means applicants do not need to bring their own match to the projects
  • They can pay on outputs and milestones meaning the evidence required for actual costs is removed
  • ESF can only be used to add value to their core provision reducing the risk of duplication or displacement activities

Opt-in organisations do not directly deliver any ESF provision; they procure the activities required by the local partnership, manage these contracts and provide the management information on performance. The opt-in organisations will only commission activities according to local partner requirements.

Open Calls

A call is an open invitation for applicants to submit proposals against a published specification. The calls will be approved by the C&IoS ITI Board before they are published. Applicants will need to have their own match funding in place to respond to a call and will also need to submit claims on an actual cost basis.

The Call and Application Process

All investment will be awarded against ‘Calls’. Calls are developed by the Managing Authorities (DCLG and DWP/Opt-in providers) in conjunction with the C&IoS ITI Board and the Cornwall Council European Team (currently funded by the Convergence Programme).

Calls are open procurements advertised as per national Government procurement processes. Calls relate to one Priority Axis within an Operational Programme and can request applications for projects for one or more areas of investment.

Once a Call is made organisations interested in bidding have to submit an outline application form.

Outline applications are appraised by the Managing Authority with a ‘strategic fit’ assessment undertaken by the C&IoS ITI Board. Applicants successful at this stage are then invited to submit a full application.

A timetable of Calls can be found at:

F.The Local Update

I. The Growth Programme Website

The Council led European Communications Team has launched the new local communications channels for 2014-2020 European Programmes.

The Cornwall & Isles of Scilly Growth Programme is now online and can be found here:

You can follow the programme on twitter:

@GrowthProgramme

Here is a link to the latest news:

Contact:

Funding opportunities that are live can be found on the website by clicking through to this linkon the website:

1

[1] August 2015

[2] At exchange rate of 0.71

[3] At exchange rate of 0.71

[4] At exchange rate of 0.71

[5] There currently local partners discussion regarding the mapping of ERDF Operational Programme Priority Axis 1a against the C&IoS ESIF Strategy)