EU and the D2N2 Economy: What next?
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1 EU and the D2N2 Economy: What next? VCSE Sector Engagement Events Rachel Quinn Active Engagement Officer - D2N2 LEP This project is part-funded by the European Structural and Investment Funds Growth Programme in England.
2 UK Economy: Snapshot High employment / lowest unemployment for 10 years Pubic sector spending / national borrowing will not meet surplus target by end of parliament UK productivity underperformance Up to 1.2% GDP on infrastructure (up from 0.8%) Increase in personal tax allowances (17/18) Reduction in corporation tax to 17% by 2020 National living wage increased to 7.50 Reduction in taper rate of Universal Credit of 2p Northern Powerhouse and Midlands Engine 500m revenue investment into prison system (2500 officers) Expansion of existing grammar schools Housing designated as national priority
3 State of the D2N2 LEP Area Economy in ,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - Change in GVA, D2N2 England Trend Line Source: Regional Gross Value Added, ONS Dec 2015 and GVA for Local Enterprise Partnerships, ONS Feb 2016
4 D2N2 Headlines Local GVA growth has slightly outpaced national average Area employment rate now exceeds pre-recession peak Narrowing of gap in skills levels between Region and England average. Proportion of working age population with no qualifications is no longer above national average No narrowing of productivity gap Continuing high levels of unemployment and economic inactivity in some communities. Increase in the number of Employment and Support Allowance claimants, more than offsetting the fall in those claiming unemploymentrelated benefits.
5 Skills Challenge EMC Quarterly Survey 54% of employers tried to recruit within past 3 months 53% experienced problems in finding suitable staff Job types where difficulties in recruitment were felt most 50% managerial / professional 47% skilled manual / technical 24% clerical / administrative 25% unskilled / semi-skilled 10% said Brexit influenced business's recruitment decisions UKCES 2015 Survey 68% highlighted work experience as being critical or significant factor in recruiting candidates. Maths and English rated at 60%, vocational qualifications 48%.
6 Key Issues for LEPs BREXIT! ESIF acceleration of programme and next steps Economic / Industrial strategy / Shared Prosperity Fund Housing the need to help developers build more homes Devolution and Combined Authorities Midlands Engine and Northern Powerhouse HS2 Growth Strategy and infrastructure developments Review of Strategic Economic Plans in the context of new national Industrial Strategy. Skills Strategies Sector growth plans Low carbon / Inclusion / rural development etc
7 D2N2 Local Enterprise Partnership By 2023 we will: Develop sector growth agreements Deliver 55,000 new jobs in the private sector Accelerate delivery of 77,000 new homes Deliver a step change in skills outcomes Creative Industries Life Science Transport & Logistics Increase our business base Share the benefits of growth across our communities
8 Local Growth Fund LGF is a 257m Capital Grant Fund Funding for all types of capital infrastructure projects e.g Roads, Housing, Cycle Infrastructure, Education provision. All projects are funded against matched contributions from public, private or voluntary sector contributions.
9 Infinity Park Derby (Enterprise Zone) 31.4m project to the south of Derby City Centre Series of infrastructure works to enable the development to take place. Road infrastructure, brook realignments and sustainable transport improvements m of LGF Funding matched by 7.45m from the private sector.
10 Sherwood Visitor Centre 500,000 allocated to the project subject to approval in this year Work in partnership with the RSPB and Nottinghamshire County Council, 4.8m match. Construction of the new visitor centre on the site of the current visitor centre.
11 What are the European Structural and Investment Funds? ESIF are the EC s primary mechanism for reducing social and economic disparities across the EU. In England, these funds comprise the following elements: European Regional Development Fund (ERDF) 98m Supporting business, particularly SMEs, innovation, business development, ICT, low carbon etc. European Social Fund (ESF) 93m Supporting people and business with employment and skills, enhancing access to employment and social inclusion European Agricultural Fund for Rural Development (EAFRD) 5.5m Supports economic development in our rural areas
12 ESIF Priority Axes Innovation Promoting climate Change adaptation Employment and labour Mobility Enhancing access to Information And Communication Technologies Environment and resource efficiency Social inclusion & combating poverty SME Competitiveness Better education, skills and Life long learning Low-carbon economy in all sectors
13 What will ESIF buy in D2N2? ESIF has specific outputs and outcomes: D2N2 have set the following broad targets for the programme: 5000 businesses receiving support e.g. ICT, low carbon, competitiveness, innovation 400 new enterprises supported 15,000 people supported to find employment 8,000 people supported in relation to social inclusion 2,500 businesses improving skill levels
14 D2N2 ERDF Priorities Innovation new products, new markets, business processes Business Support ICT, connectivity, low carbon Midlands Engine Investment Fund early growth finance, Rural Capital grants to rural SME s (EAFRD) 8 Priority Sectors Actions Plans for Low Carbon, Construction, Visitor Economy, Food & Drink Manufacturing, Life Sciences, Transport Equipment Manufacturing, Transport & Logistics, Creative Industries, Health and Social Care, Retail Over 20 projects worth nearly 40m approved to support business growth D2N2 Growth Hub
15 ERDF Business Support activities Innovation 3 projects Universities of Nottingham / Derby / Medilink Building collaborative research between enterprises and universities e.g. graduate placements, grants to innovate, 121 advice, events etc. ICT - Nottinghamshire County Council Coaching, advice, consultancy, mentoring, seminars, grants for businesses to access new markets, equipment and develop skills
16 ERDF Business Support activities SME competitiveness - 11 projects Coaching from start up to survival, ongoing business planning, Grants to invest for product, process and service improvements; Low Carbon Unis of Derby / Nottingham SME s grow by becoming more sustainable, improving resource efficiency and reducing CO2 Technology / knowledge transfer, coaching, consultancy, seminars, grants e.g. for new equipment
17 D2N2 ESF Priorities Develop employer led flexible provision to add value to mainstream activities Address Market Failure Better prepare people to secure jobs Remove barriers to employment Engage with new businesses to invest in skills Coverage and coherence across D2N2
18
19 Enterprise, Innovation Pathways Investment Priority Access to Employment for Jobseekers and inactive people 1,465,910 available Improve employability of LTU Support groups who face disadvantage in labour market 50+, disabled etc Encourage inactive people to improve employability Address Basic Skills Reduce gender employment gap by supporting women at disadvantage in labour market
20 Develop Sector Growth Investment Priority Access to Employment for Jobseekers and inactive people (complementary call with 2.1.) 459,072 available Improve employability of LTU Support groups who face disadvantage in labour market 50+, disabled etc Encourage inactive people to improve employability Address Basic Skills Reduce gender employment gap by supporting women at disadvantage in labour market Improve access to transport
21 Develop Sector Growth Investment Priority 2.1 Enhancing equal access to lifelong learning 653,019 available Boost support for priority sectors Basic skills of employed, SME s, micro addressing skills shortages Increase technical skills, including apprenticeships Support links to EMPLOY Local and SKILLS Local Increase skill levels of employed women to address wage gap / gender employment
22 Higher Skills Development Investment Priority 2.2 Improving the labour market relevance of education and training systems Complementary with 2.1 3,767,593 available Promote improvements in labour market relevance of skills provision through active engagement with institutions and employers particularly SME s and micro businesses Graduate retention Support for disadvantaged students Coherence with employment and skills landscape
23 Growth Hub All roads lead to the Growth Hub!! Call info@d2n2growthhub.co.uk
24 What Next? Community grants Health & Wellbeing Pilots Second half of the programme??? Shared Prosperity Fund
25 D2N2 ESIF Revenue Projects: Schedule ERDF Business Support Projects PROJECT NAME APPLICANT ERDF ( ) ERDF End of Priority Activity Axis Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Catalysing Growth through Research for Transport Equipment Manufacturing University of Derby 1,352, /03/2019 Enabling Innovation University of Nottingham 10,142, /03/2019 INSTILS (Inspiring Networking to Stimulate Technology Innovation in Life Sciences.) Medilink East Midlands Limited 2,551, /12/2018 D2N2 Digital Business Growth Programme Nottinghamshire County Council 3,787, /12/2018 East Midlands A2F Fund of Fund 9,750,000 Financial Instruments 2,000,000 3, 4 31/3/2023 The Creative and Digital Industries D2N2 Consortium for increased SME Competitiveness Nottingham City Council 2,479, /09/2019 Centre for supply chain competitiveness in transport engineering University of Derby 636, /03/ m of ERDF business support projects in D2N2 due to end in 2019 Growing and Developing the Visitor Economy Sector within Derbyshire. Visit Peak District and Derbyshire 743, /03/2019 The D2N2 LEP Growth Hub Nottingham City Council 1,657, /03/2019 Invest in D2N2 Marketing Derby 1,184, /12/2018 D2N2 SME Growth and Innovation Programme East Midlands Business Ltd 5,600, /12/2018 Food Enterprise Advisory Support Team (FEAST) Food & drink Forum 1,751, /12/2018 Growing Enterprise NBV Enterprise Solutions Ltd 1,511, /11/2018 Internationalising SMEs East Midlands Business Ltd 500, /09/2018 The Prince s Trust BETTER OFF IN BUSINESS Princes Trust 658, /09/2018 D2EE -(D2 area Energy and Efficiency) University of Derby 2,334, /05/2019 Environmental Technology Centre 6 University of Nottingham 1,752, /02/ million pounds worth of business support programmes, including 32 million of ERDF funding are due to end by 31 st March A further 10.8m worth of business support projects, including 5.4m of ERDF funding are due to end by 30 th September No funding has been identified to replace the lost ERDF funding. These projects will assist 6,092 businesses, create 1,921 new jobs and support 1,125 new business starts. ESF Inclusion, Employment and Skills Support Projects PROJECT NAME APPLICANT ESF ( ) ESF End of Priority Activity Axis Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CAREERS Local Nottinghamshire County Council 1,731, /07/2018 D2N1 Youth Engagement CT Skills 2,879, , /07/ m of ESF skills and employment projects in D2N2 EMPLOY Local DBC Training 4,049, /07/2018 due to end in 2018 SKILLS Local Learn Direct 4,725, /07/ m of skills and employment projects, including 17.3m of ESF are due Nottingham Works Nottingham City Council 2,434, /07/2018 to end by 31 st July In theory there can be further ESF calls to extend Get on Track By Design Group 124, /07/2018 provision of this type but there is no confirmation of match at source or Nottm Gets to Work Sustrans 380, /07/2018 cofinancing to enable this to be delivered in D2N2. Nottingham Enterprise Works NBV 78, /07/2018 Get in 2 DBC Training 309, /07/ m of ESF skills and employment projects Nottingham Works Plus Nottingham City Council 516, /07/2018 in D2N2 due to end in 2019 INSPIRE Local Working Links 4,542, /12/2019 A further 23.4 of inclusion, skills and employment projects Financial Inclusion St Ann's Advice Centre 1,544, /10/2019 are due to end in Q4 2019, including 12.1 million of ESF. Multiple and Complex Needs Framework HA 2,317, /10/2019 Government will not issue ESF contracts after Q No Towards Work GGN 3,700, /10/2019 funding has been identified replace lost ESF funding. Developing Sector Growth (outline) TBC (outline) 1,112, , /3/20 Enterprise, Innovation and Pathway (outline)s TBC (outline) 1,465, /3/20 Higher Skills Development (outline) TBC (outline) 4,764, , /3/20 Community Programme - Active Inclusion Grant TBC (planned call) 1,500, /9/20
26 Questions 1. What is missing? 2. What else could the VCS contribute towards delivery of? 3. Can the VCSE provide match for any of this activity?
27 Contact details Rachel Quinn Active Engagement Officer D2N2 Local Enterprise Partnership Tel:
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