This document summarizes the UK structural funds for 2014-2020 and opportunities for their use. It discusses the goals of improved focus, coordination, and accountability between EU programs. Funds will support regional economic development, skills, employment, rural development, and fisheries. Eleven thematic objectives are identified. Opportunities exist for integrated interventions, geographic flexibility, and streamlined systems. Priority regions are identified based on GDP levels. The roles of local leadership, LEPs, cities, and consistency with strategic priorities are discussed. Alignment between the ERDF, ESF, EAFRD and EMFF is an opportunity. The consultation process and next steps are outlined.

1. UK STRUCTURAL FUNDS 2014-2020
Regional Action West Midlands
Consultation event 26th
July 2012
Sharon Shattock

2. A COMMON STRATEGIC APPROACH
Europe 2020: EU drive for greater impact, better
alignment & stronger accountability
 Improved focus and prioritisation to drive faster economic growth
 Better co-ordination and integration between EU programmes
 Programmes focussed on delivering results and impact
 More transparent, efficient, streamlined and simplified delivery
systems for beneficiaries

3. COMMON STRATEGIC FRAMEWORK
Opportunity to align substantial investments:
 Regional economic development (ERDF)
 Skills, employment & pre-employment (ESF)
And also:
 Rural development
(EAFRD – currently part of the CAP)
 Fisheries (EMFF – currently part of the CFP)

4. THEMATIC OBJECTIVES
COMMON STRATEGIC FRAMEWORK FUNDS
1. Innovation and R&D
2. ICT: Improving access; quality and usage
3. SMEs: Improving competitiveness, incl. in the agricultural and
aquaculture sectors
4. Shift to low carbon economy
5. Climate change adaptation and risk management
6. Environmental protection & resource efficiency
7. Sustainable transport and unblocking key networks
8. Employment and labour mobility
9. Social inclusion and fighting poverty
10. Education, skills and lifelong learning
11. Improving institutional capacity for efficient public
administration (‘Technical Assistance’)

5.  Integrated interventions
 Geographic flexibility
(eg. Nationalissue based; pan-regional city-wide; local communities)
 Streamlined systems
(reduced red tape for beneficiaries in exchange for stronger
performance management accountability at Member State level)
 Community-led local development (all 4 funds)
‘Local Action Groups’ able to draw on all 4 Strategic Framework funds
according to an integrated plan.
 Joint Action Plans (ERDF & ESF only)
Lump sum payments to a single beneficiary up to €10m or 20% of an
Operational Programme (whichever is lower) to manage a group of projects
aimed at a specific purpose (but not for infrastructure or major projects)
 Integrated Territorial Investments (ERDF & ESF only)
Urban development or Territorial strategy drawing on a multiplicity of
programme strands and programmes. Management can be delegated to a
city or NGO.
COMMON STRATEGIC FRAMEWORK - OPPORTUNITIES

6. ‘LESS DEVELOPED’ REGIONS 2014-2020
 GDP/head below 75% EU27
average
 75%-85% EU co-financing available
for wider range of activities
 At least 25% spend must be from
European Social Fund
 Likely to be West Wales and the
Valleys + Cornwall and Scilly
Isles

7. ‘TRANSITION’ REGIONS 2014-2020
GDP/head between 75% and 90% of EU27
average
60% EU co-financing
At least 40% spend must be from European
Social Fund, of which 70% of each
programme must focus on only 4
priorities, with 20% earmarked for
tackling social exclusion at national level
80% ERDF to focus on only 3 priorities
Likely to include :
– Devon
– Lincolnshire
– East Yorkshire & N. Lincolnshire
– Shropshire & Staffordshire
– South Yorkshire
– Merseyside
– Lancashire
– Tees Valley & Durham
– Highlands & Islands
– Cumbria
– Northern Ireland

8. ‘MORE DEVELOPED’ REGIONS 2014-2020
 GDP/head more than 90% EU27 average
 50% EU co-financing
 At least 52% spend must be from European Social Fund,
of which 80% of each programme must focus on only 4
priorities
 At least 20% ESF to focus on social exclusion at national
level
 80% ERDF to focus on only 3 priorities:
Innovation
SME competitiveness
Low carbon and energy efficiency (at least 20%)

9. ERDF - key to local growth £3.2bn in England 2007-13
LOCALISM - what do we mean by local areas & what are
the building blocks?-
Local leadership and descision-making
Role of role of Local Enterprise Partnerships – organising
programmes according to larger functional economic areas
Cities – as key drivers within programme areas utilising
scale and flexibilities, eg City Deals
Programmes that are consistent with national strategic
priorities and can lever public and private sector match
funding
ERDF in England - 2014-2020

10. ERDF AND THE OTHER EU FUNDS- What are the
opportunities and what do we mean by alignment?
ERDF & ESF - joint support for SMEs/entrepreneurship
/self-employment
ERDF and EAFRD and EMFF - building rural and coastal
economies
Mechanisms - mono/dual fund programmes; ITI/JAP/CLLD
LIABILITIES -how much responsibility and whose?
Administrative options that: maximise local relevance
and minimise budget risk
Commission parameters & drivers - Managing
Authority/Intermediary Body/NUTS2/Cities and Functional
Urban Areas/Fund alignment

11. Consultation
• NCVO event 27TH
April 2012
BIS Informal Stakeholder consultation April 2012;
• 200 Responses
• 21 from the voluntary sector including NCVO
• Key messages to government:
• Reduce administrative burden
• Support integrated programmes
• Flexible programme boundaries
• Fresh thinking on match funding

12. Future perspectives
 Areas left for debate in design of UK/English
Programmes;
• Partnership Agreement – setting out proposals to
streamline and reduce bureaucracy; proposed
governance and implementation structures, financial
allocations and Programme geographies.
• Shape and design of operational programmes –
alignment with EU Commission, UK Government and
local strategic policy and spatial objectives.
• How best to achieve integration and alignment between
funds eg ERDF support for SMEs alongside ESF
business skills and with Defra Funds in rural and coastal
communities.
• How to embed local influence and direction within
Programme development and delivery.

13. Next Steps
• Autumn 2012 series of consultation events to present
Governments thinking and gain further views from
stakeholders.
• Government Consultation on Partnership Agreement
anticipated beginning of 2013.
• Operational Programme development and negotiation
from 2013
• Partnership Agreement can be submitted to the
Commission for approval in January 2014 once budgets
are finalised.
• Programmes in place from 2014

14. KEY QUESTIONS FOR YOU
 WHAT ARE YOUR KEY PRIORITIES?
 WHAT KINDS OF PROGRAMME GEOGRAPHIES WILL
WORK BEST?
 HOW DO YOU WANT TO ACHIEVE IMPROVED
ALIGNMENT BEWTEEN THE FUNDS ?
 HOW DO WE DEVELOP A CONSENSUS?
 WHAT WILL SUCCESS LOOK LIKE?