The document presents the UK government's proposals for an EU Common Strategic Framework (CSF) Funds delivery model in England from 2014-2020. It proposes consolidating several EU funds into a single "Growth Programme" focused on priority themes like innovation, SME competitiveness, and low-carbon development. This would be overseen by Local Enterprise Partnerships and managed through new "CSF Area Growth Teams." Separate programs are proposed for rural development and maritime/fisheries. The government seeks feedback on further developing this approach to simplify administration while aligning local and national priorities with EU regulatory requirements.

1. EU COMMON STRATEGIC FRAMEWORK
FUNDS IN ENGLAND 2014-2020
GOVERNMENT PROPOSALS
7 DECEMBER 2012

2. HMG’s OBJECTIVES FOR TODAY
 Present the Government’s latest thinking for an EU
Common Strategic Framework (CSF) Funds delivery
model and get feedback from you to inform its further
development
 Listen to your views
 Understand from you your plans and aspirations for how
to use the CSF Funds

3. 2012 EU BUDGET (commitments)
€147.2 billion = 1.12% of EU gross national income
Citizens, freedom,
security and justice
1%
The EU as a global player:
including development aid Administration
6% 6%
Natural Sustainable growth:
resources: Jobs, competitiveness,
Agriculture & regional development
environment 46%:
41% of which
STRUCTURAL FUNDS
36% (€53 bn)

4. ‘ALLOCATED’ TO THE UK:
STRUCTURAL FUNDS, RURAL DEVELOPMENT & FISHERIES FUNDS
EUROPEAN REGIONAL DEVELOPMENT FUND (£2.8 bn 2007-2013 England)
 Innovation and knowledge based economy (incl commercialisation
of research and technology transfer)
 Stimulating enterprise and supporting SMEs
 Sustainable Development & low carbon technologies
 Building sustainable communities – incl regeneration
10 programmes in England managed by DCLG (previously RDAs)
EUROPEAN SOCIAL FUND (£2.5 bn 2007-2013 for England)
 Helping unemployed and inactive people into work (especially
disadvantaged groups such as ex-offenders, young people NEET and
unskilled people)
 Improving workforce skills and redundancy support
1 English programme managed by DWP

5. ‘ALLOCATED’ TO THE UK (continued):
STRUCTURAL FUNDS, RURAL DEVELOPMENT & FISHERIES FUNDS
EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT
(£3.7bn 2007-2013 for England)
Improving the environment and countryside; Improving the
competitiveness of the agricultural and forestry sector ;
Quality of life in rural areas and diversification of the rural
economy. One English programme / DEFRA.
EUROPEAN FISHERIES FUND
(£40m for England in 2007-2013)
Smart, green fisheries (to address discards); aquaculture
businesses ; coastal communities dependent on fishing. 1 UK
programme / DEFRA.

6. CHANGING TIMES
- NEGOTIATIONS FOR 2014-2020 -
 Economic landscape : recession & Eurozone crisis
 EU budget & Structural Funds in particular :
 Increased focus on driving the EU forward vs global
competitors : EU 2020 (external)
 Concentration of EU investment on top drivers
of EU growth and jobs & delivering UK National
Reform Programme
 More flexibility to align EU funds to increase
impact (regional, social, rural and fisheries)
 Streamlining red tape

7. WHAT’S HAPPENED SO FAR……
 Informal consultation (April 2012)
 Bespoke events for specific audiences eg. universities,
local authorities, voluntary sector, fund specific
management committees, etc (Spring-Autumn 2012)
 Development of an initial delivery model and
Ministerial discussion (November 2012)
 Road testing the approach (today!)
 Refining the model for formal consultation 2013

8. WHAT YOU HAVE TOLD US SO FAR
 Preference for place based programmes with flexible
geographies
 Any approach must be responsive to local need and
national priorities
 Simplification of fund management
 Integrated programming, in particular in relation to the
Structural Funds (ERDF and ESF)
 Better co-ordination of match-funding & co-financing
across the public sector

9. GROWTH PROGRAMME THEMES
Top priorities
 Research, technological development and innovation – esp.
commercialisation
 Raising SME competitiveness – esp re exports
 Shift to low-carbon economy – esp energy efficiency &
renewable technologies
 Employment & skills (inc. social inclusion)
Other objectives
 Climate change adaptation, risk prevention & management
 Environmental protection & resource efficiency
 Sustainable transport and removing network bottlenecks
 Access to & use of ICT

10. GROWTH PROGRAMME ORGANISING PRINCIPLES
Complex EU funds
packaged as a coherent Variable
and consistent geographies
programme
National and
local priorities Local decision
aligned BETTER FOCUS making and drive
HIGHER IMPACT
A single set of INCREASED Common standards
targets and
milestones across
GROWTH and transparent
England accountabilities
EU regulatory Lower cost &
requirements met simplifies
and financial risk
administration
minimised

11. PROPOSED DELIVERY ARRANGEMENTS
Maritime
Rural and
Growth Programme Development Fisheries
(ERDF, ESF & EAFRD) Programme Programme
(EAFRD) (EMFF)
Community Led Local
Development, including Leader
and FLAGs
Projects

12. GROWTH PROGRAMME
 An “EU Growth Programme” to be financed by ERDF and ESF with
a contribution from EAFRD
 A single “EU Growth Programme Board” incorporating a joint
Programme Managing Committee for ESF and ERDF
 LEPs to be the fundamental building blocks receiving a 7 year
notional allocation subject to periodic performance reviews
 LEPs to identify their preferred EU investment prospectus as part
of their wider growth strategy, for agreement by the Growth
Board. LEPs will not take on project delivery accountabilities,
however but retain a strategic oversight role in cooperation with
local partners.
 Government departmental teams to work as “CSF Area Growth
Teams” to support LEPs in their strategic role. All final funding
decisions to be dependant upon due diligence by fund Managing
Authorities.
 National co-financing initiatives to take account of local needs
 ‘ITIs’ may be an option in a limited number of places - where this
arrangement will deliver better value, higher impact results.

13. GROWTH PROGRAMME: A SIMPLER SYSTEM
 Greater alignment of eligibility rules for projects
across the country
 Improved and harmonised guidance to applicants
 Managing authority to ‘hide the wiring’ where projects
draw on more than one fund

14. RURAL DEVELOPMENT PROGRAMME
 Securing environmental benefits
 Boosting the competitiveness and growth of agriculture
and forestry sector
 Strengthening rural communities

15. MARITIME AND FISHERIES PROGRAMME
 Smart, Green Fisheries
 tackle fish ‘discards’
 fisheries which are less
damaging to the marine
environment and support innovation
 Smart, Green Aquaculture
 Sustainable Development of Fisheries Areas
 reverse the decline of
communities
dependent on fishing

16. EU PRIORITIES
 Europe 2020: “smart, sustainable and inclusive growth”
 National Reform Programme
 Commercialise new technologies
 Finance SMEs
 Invest in low carbon power, infrastructure and new ‘green’ markets
 Address NEETs & higher/intermediate skills gaps
 Common Strategic Framework
 Align CSF funds to improve coherence, impact, efficiency and
effectiveness
 Thematic Concentration
 80% ERDF for innovation, SMEs, low carbon (ICT?) - except Cornwall
(tbc)
 20% ESF &ERDF for social inclusion (tbc)
 Commission position paper for the UK – 6 December

17. IDEAS INTO REALITY : CSF NEGOTIATIONS PROCESS
Informal Ministers Formal Develop programmes
consultation agree
consultation
domestic
delivery
Develop UK
CSF
negotiating Identify, develop and test policy options Go live
positions
EU Commission
tests & UK negotiates with other EU countries, European Parliament and
launches Commission
proposals
Develop UK EU
budget
UK negotiates EU budget
negotiating
positions
EU - Eurozone crisis; downward pressure on EU budget; upward pressure on CSF funds to deliver results
UK – pressure to drive high impact growth; localism; city deals; CSR; ministerial change & elections

18. WHAT DO YOU THINK?!