1 Innovation Centre, Cranfield University Technology ParkSEMLEP ERDF WORKSHOP 26 January 2017 Room 36 Innovation Centre, Cranfield University Technology Park Part-funded by ERDF Technical Assistance
2 Content ERDF Programme Updates ERDF Programme overviewSEMLEP ERDF Programme: to date Current calls: PA 1 and PA3 ERDF key principles Application process Further information part-funded by ERDF Technical Assistance
3 ERDF PROGRAMME updatesProjects to be funded up until when UK leaves the EU even if projects’ funding runs beyond the UK leaving the EU Projects submitted after the Autumn Statement will need to meet domestic priorities and provide value for money ESIF Committees to provide advice on VfM on all new applications (this will require a change to Operational Programme) Measures to strengthen contract management and project evaluation Planning for second half of SEMLEP ERDF Programme from January 2017
4 Impact of NEP-SEMLEP Merger?No impact on all current ERDF projects Continue to deliver in either historical NEP or SEMLEP area From January 2017 we will have: -a combined ESIF committee -a combined ESIF notional allocation To do: -a unique ESIF Implementation Plan -a unique Strategic Economic Plan (refreshed by May 2017) part-funded by ERDF Technical Assistance
5 The combined SEMLEP SEMLEP Aylesbury Vale South NorthamptonshireWellingborough Cherwell Northampton East Northants Milton Keynes Daventry Bedford Kettering Central Beds Corby Luton part-funded by ERDF Technical Assistance
6 Co-financing OrganisationsENGLAND MANAGEMENT ARRANGEMENTS ESI Funds Growth Programme (ERDF, ESF & EAFRD) Rural Development Programme (EAFRD) Maritime and Fisheries Programme (EMFF) CSF Growth Teams Co-financing Organisations LEPs Community Led Local Development, including Leader and FLAGs Projects
7 Research and Innovation- expected spend 21.7% ERDF Priority Axis 14-20 Research and Innovation- expected spend 21.7% 2. ICT – expected spend % 3. SME Competitiveness - expected spend 40% 4. Low Carbon Economy - expected spend 17.3% 5. Climate Change Adaptation – expected spend 1.9% (not in SEMLEP) 6. Protection of the Environment – expected spend 3% 7. Sustainable Transport – expected spend 1.6% only in Cornwall/IoS
8 Notional Allocation - £35m * SEMLEP allocations for ERDF 2014 to 2020*SUBJECT TO EXCHANGE RATE FLUCTUATIONS PA1 – Research and Innovtion - £8m PA2 – ICT - £2.5m PA3 – SME Competitiveness - £14.8m PA4 – Low Carbon Economy - £8.3m PA6 – Green Infrastructure - £1.7m
9 Notional Allocation - £21.5m * NEP allocations for ERDF 2014 to 2020*SUBJECT TO EXCHANGE RATE FLUCTUATIONS PA1 – Research and Innovation - £4.3m PA2 – ICT - £1.8m PA3 – SME Competitiveness - £10.5m PA4 – Low Carbon Economy - £4.8m
10 ERDF Programme to date £34m: SEMLEP & NEPPriority Axis Project Provider Promoting Research and Innovation Innovation Bridge IMAGE City Labs Innovate Northamptonshire Advanced Clinical Technology Innovations Central Beds Council Cranfield University The Open University University of Northampton Medilink East Midlands Ltd Improving ICT Access, use, quality Digital Northamptonshire ICT Escalator Northampton County Council University of Bedford SMEs competitiveness Ready to Grow FEAST Internationalising SMEs Manufacturing Growth Programme Better Off in Business SEM Support for start ups (including SE) Financial Instrument (ring fenced) Food and Drink Forum EMB WM Consortium Princes Trust Wenta British Business Bank + fund managers Low Carbon Smart Energy Business for Northamptonshire Renew Luton Borough Council
11 SEMLEP + NEP ESIF Programme Indicative Allocations 2017-20Combined ERDF £9.9m £13.7m £23.6m
12 ERDF Priority Axis and allocations 2017-20ERDF PA Indicative allocation Current Open Call Deadlines Innovation £5,707,530 £3,707,530 Open till October 2017 Reviewed on: 17 Feb 30 April 30 July 31 October SMEs £6,117,726 £4,445,870 Low Carbon £7,155,086 £4,571,086 Protection of the Environment £1,671,187
13 SEMLEP Live calls: ERDF Priority Axis 1: Research and Innovation1a Enhancing research and innovation infrastructure and capacities to develop research and innovation excellence Purpose: to build or enhance infrastructure that in due course will contribute to commercialisation of products, services and processes Indicative actions Specialist centres/facilities linked to Smart Specialisation, e.g. Science Parks Upgrading of innovation space Improved incubation space for innovation/research Development of enterprise, innovation and technology hubs Upgrading of test facilities
14 SEMLEP Live calls: ERDF Priority Axis 1: Research and Innovation1b Promoting business investment in research and innovation Specific Objectives: SMEs invest more in research and innovation in sectors/technologies linked to SSS. More SMEs engage in knowledge exchange with research, public or large private enterprises Indicative actions Productive Innovation partnerships (linked to Smart Specialisation Strategy) Supporting commercialisation of new products, process and initiatives (linked to the 8 Great technologies set in the Smart Specialisation Strategy) Applied Research Programmes for sectors and technologies set out n the SSS Innovation Vouchers for SMEs Technology Support Programmes Grants to support development of prototypes and social innovation Local Priorities: collaborative R&D projects; innovation hubs; tailored support; business and innovation advice for full list check Call for Proposals: https://www.gov.uk/european-structural-investment-funds/research-and-innovation-call-in-south-east-midlands-oc31r16p- 0470
15 Outputs 1a C25 Number of researchers working in improved research facilities P2 Public or commercial buildings renovated or build 1b C1 Number of enterprises receiving support C2 Number of enterprises receiving grants C3 Number of enterprises receiving financial support other than grants C4 Number of enterprises receiving non- financial support C5 Number of new enterprises supported C6 Private investment matching public support to enterprises (grants) C7 Private investment matching public support to enterprises (non- grants) C8 Employment increase in supported enterprises C26 Number of enterprises supported to introduce new to the market products C28 Number of enterprises supported to introduce new to the firm products C29 Number of enterprises cooperating with research entities P2 Public or commercial buildings built or renovated
16 SEMLEP Live calls: ERDF Priority Axis 3: SME COMPTETIVENESS3a Promoting Entrepreneurship (new idea, new firms, business incubators) Specific Objective: increase entrepreneurship particularly in areas with low levels and amongst underrepresented groups Indicative actions: Provision of land and premises for employment sites including incubator space, managed workspace and grow on space. Support for individuals starting a business, new SMEs including social enterprises Local Priorities: Providing businesses with high quality business premises Retrofit/refurbishment of existing business premises (including town centres) Open to public and private organisations Must demonstrate current supply does not meet demand Explain position about planning permissions, site ownership, match funding, RIBA stage 3
17 SEMLEP Live calls: ERDF Priority Axis 3: SME COMPTETIVENESS3C Supporting the creation and extension of advanced capacities for products, services and development (Increase the growth capacity of SMEs) Indicative actions: Advice and Support for: development of new business models or higher quality products; productivity improvements including resource efficiency; business processes; attracting FDI; collaborative projects; access to finance. Activities can target domestic and foreign- owned SMEs
18 SEMLEP Live calls: ERDF Priority Axis 3: SME COMPTETIVENESS3d Supporting the capacity of SMES to grow regionally, nationally, internationally and to engage in innovation processes Indicative actions: Support for developing growth strategies; local referral routes to tailored support for expanding in new markets; attracting new business investments; investment readiness; advice on access to finance; leadership and management coaching linked to business growth plan; support events/trade fairs to enable SMEs to expand in new markets; advice on access to finance Local priorities: Support for high growth SMEs and Scale Ups (achieving £1m turnover within 3 years of starting trading or have at least 10 employees). For further information: https://www.gov.uk/european-structural-investment-funds/sme- support-call-in-the-south-east-midlands-rolling-call-oc31r16p0468
19 Outputs C1 Number of enterprises receiving supportC2 Number of enterprises receiving grants C3 Number of enterprises receiving financial support other than grants C4 Number of enterprises receiving non- financial support C5 Number of new enterprises supported C6 Private investment matching public support to enterprises (grants) C7 Private investment matching public support to enterprises (non- grants) C8 Employment increase in supported enterprises C28Number of enterprises supported to introduce new to the market products P2 Public or commercial buildings built or renovated P11 Number of potential entrepreneurs assisted to be enterprise ready (3a only) P13 Number of enterprises receiving information, diagnostic and brokerage support (3c & 3d only)
20 ERDF Key Principles Minimum project size is £500k ERDF50% match funding: clean, private or public, cash, staff time, SMEs contributions*, delivery partners, donated land no more than 10%, buildings (present value), bank loans, capital/revenue match funding Simplified cost options for indirect costs and hourly rates BREEAM rating of ‘excellent’ for new build and ‘very good’ for refurb. Cross cutting themes: Equality and anti discrimination and sustainable development policies and implementation plans (see ERDF OP sect. 11) Added value, ‘good value for money’ and alignment with domestic priorities Must be able to cashflow operation Procurement policy (legal advice) State Aid (legal advice)
21 What costs can be claimed?Revenue Capital Contingencies to allow for unforeseen costs Mobile assets (phone, computers, motor vehicles) 100% ERDF Land Acquisition up to 10% of total project cost Building Acquisition Plant and machinery Equipment and second hand equipment Ineligible Expenditure: Local social welfare facilities (hospitals, sport facilities, parks etc.) Coastal protection, soil conservation Building and renovation of housing except for energy efficiency Infrastructure in ports List not exhaustive! If in doubt contact DCLG Direct staff costs Direct other costs Rent, equipment, evaluation, procured goods, services, works Travel and substance Flat rate of 15% of direct staff costs for all other indirect costs egg HR, IT, Finance Ineligible expenditure: Notional costs Entertainment Contingencies Bad debts List not exhaustive! If in doubt contact DCLG Check Eligibility Guidance
22 Application Process Calls specification is published on Funding Finder on & publicised on LEP website Must read the following documents prior to starting application: SEMLEP/NEP ESIF Strategies ERDF Operational Programme Programme Guidance including National ERDF Eligibility Rules, Selection Criteria, Procurement and State Aid Guidance, Publicity rules Use the Outline Application Guidance to Complete Outline Application; You will also need to submit: granular budget; indicators annex; financial table annex. You will need to give details about your policy and implementation plan for Equality and Sustainable Development OR steps you will take to develop. Give yourself plenty of time, outline application can run to 50 pages!
23 Assessment of outline application To get through to the next stage you need to meet:1) Gateway Criteria 2) Core criteria Is your organisation eligible to apply? Is the proposed activity and expenditure eligible? Does your proposal clearly meets the Call needs and opportunities? Does it fit with the ERDF Operational Programme? strategic fit (national and local) value for money management and control deliverability compliance with: eligibility rules, procurement, state aid, publicity requirements and cutting themes
24 …if you are accepted to make a Full Application…Use the full application guidance to help completing form and annexes The Managing Authority may have made suggestions for conditions to be met, these need to be fully answered in your full application The appraisal will focus on core criteria It may take some time before you finally receive the Funding Agreement, remember any expenditure incurred from Outline approval is at applicant’s own risk
25 Useful links SEMLEP & NEP Esif Strategies ERDF Operational Programme https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/453888/England_ERDF_op erational_programme_FINAL_ pdf Programme Guidance (eligibility, publicity, procurement, revenue, state aid, document retention, performance, fraud, conflict of interest, timesheets) https://www.gov.uk/government/publications/european-structural-and- investment-funds-programme- guidance Output definition guidance https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/577016/ESIF-GN _ERDF_Output_Indicators_Definition_Guidance_v3.docx Funding Agreements https://www.gov.uk/government/publications/european-structural-and-investment- funds-funding-agreements
26 Support from ESIF Facilitation TeamESIF Facilitators (ESIF Manager) (Advisor rural affairs and VCS) Tel: M: (Sandra)