…help yourself to a cup of coffee!. welcome & introduction mandip rai head of llep
TRANSCRIPT
…help yourself to a cup of coffee!
Welcome & Introduction
Mandip RaiHead of LLEP
Why we’re here……..
• Communicate the LLEP’s role in EU Structural Funds to organisations, individuals, groups and networks in Leicester & Leicestershire
• Engage with key individual stakeholders to form our Structural Investment Funds (SIF) Strategy
• Ensure inclusive participation and contribution to develop our SIF strategy
• Agree draft priority thematic objectives that should shape our SIF Strategy
• Consider potential activities, investment priorities and pipeline projects/programmes
Agenda
10.00 Welcome & Introduction – Mandip Rai, LLEP
10.05 An introduction to EU Funding 2014-20 - Pete Holmes, DBIS
10.15 EMC Technical Assistance Project - Andrew Pritchard, EMC
10.25 Q&A
10.35 The Leicester & Leicestershire economy: Some Facts & Figures
10.50 The LLEP Priorities - Caroline Boucher, LLEP
11.00 Coffee break
11.15 Workshop: Investment priorities for the LLEP area
12.30 Feedback: Top investment priorities and potential projects
12.50 Next Steps & Closing Remarks – Mandip Rai, LLEP
13.00 Lunch & Networking
Workshop
Investment Priorities / Activities Potential Projects / Programmes
Employment, Skills & Social Inclusion
The Story so far
April 2012 - Government consultation
Autumn 2012 – New delivery model developed – single EU GrowthProgramme (ERDF, ESF and EAFRD). Developed in response tostakeholder demands:
• Place based, flexible geographies• Improved responsiveness to local needs• Simplified management and integrated planning
November/December 2012 – RoadshowsApril 2013 – Preliminary guidanceJune 2013 – Notional Allocations – Leicestershire: 126.3 million eurosJuly 2013 – Detailed Guidance
LEP Roles and Responsibilities
• Develop EU SIF strategy, working with wide range of partners (including collaboration)
• Select and prioritise projects through commissioning, bidding and co-financing
• Identify match funding• Spend allocation on time and in line with priorities in EU
regulations• Ensure outcomes delivered • Monitor delivery against strategy and programme priorities• Not responsible for administering the funds (this remains
with MAs – DCLG, DWP and Defra)
Engaging Partners• EU rules require involvement of wide range of
partners to develop and deliver strategies (including businesses, trade unions, local authorities, civil society, rural partners, environmental interests, equality and non-discrimination bodies and further and higher education).
• In rural areas at least 5% of the Rural Development Programme has to be spent through Local Action Groups using LEADER principles.
• LEPs and partners to decide how much to spend on each thematic objective
Key content for draft strategies Local narrative:• market failures, risks, needs and opportunities• drivers and barriers• visionInvestment priorities:• preferred breakdown of spend by fund, thematic objective
and investment priorities• match funding• outputs/results Collaboration:• Plans to collaborate with other LEPs – with details of
themes and geographies Governance and cross-cutting themes
Timetable
• Detailed Guidance - by mid July • Draft LEP SI Fund Investment Strategies - by end Sept• Draft Partnership Agreement - Autumn 2013• Final LEP SI Fund Investment Strategies - January 2014• Start of Programme - Mid 2014• First review of notional allocations 2017
EMC Technical Assistance Project
Andrew PritchardDirector of Policy & Infrastructure
Introduction
What is it all about? Some background Project objectives and timescales Your mission today…
What is it all about?
A technical assistance project led by East Midlands Councils to provide an evidence base for future EU funding
To make sure that we maximise the potential of EU investment across the East Midlands
Strong support from DCLG & Council Leaders for project
Current Experience
Spend under the current ERDF Programme has been slow
Too many small projects - difficult to see a strategic impact
Original operational programme did not fully meet local needs - e.g. Broadband
Future Challenges
1 region replaced by 7 LEPs – 4 overlapping
Pressure for early spend on projects that will deliver clear outcomes
LEP notional allocations to be reviewed in 2017- under-performance could be penalised
Threats v Opportunities
What are we going to do?
Facilitate a series of consultation events Develop an evidence base (or ‘socio-
economic framework’) to inform both the UK Growth Programme and individual LEP Strategies – working with NTU.
Highlight potential areas of collaborative activity that can maximise strategic impact and reduce ‘transaction costs’
Events Diary
1st July: Greater Lincolnshire LEP 5th July: Leicester & Leicestershire LEP 9th July: Competitiveness Round Table 16th July: NEP/SEMLEP 22nd July: D2N2 25th July: Green Economy Round Table
Project Timescales
End of July 2013: Interim Report
September 2013: draft Framework
December 2013 – final Framework
January - June 2014 Awareness raising
Key Outcomes
“It’s the economy, stupid”
More Jobs Less Worklessness
Your mission today…
To think about how best EU funding could be used to address local challenges
To highlight areas or issues where wider collaboration might be helpful.
To ask if you do not understand.
East Midlands PA3 ProjectSocio-Economic Evidence – the future of European
Funds in Leicester & Leicestershire5th July, 2013
Chris LawtonNottingham Business School
Project Rationale and Objectives• The project aims to provide socio-economic evidence
to help identify synergies, linkages and common challenges across LEPs within or overlapping the East Midlands
• To identify opportunities for collaboration across the themes identified in the ‘Europe 2020’ strategy
• The UK Government would: “like to see Local Enterprise Partnerships working with each other to deliver a bigger impact… and achieve economies of scale wherever possible”
Source: HM Government, April 2013. ‘Technical Annex: Preliminary guidance to Local Enterprise Partnerships on development of Structural & Investment Fund Strategies.’ paragraph 2.8, p. 4.
Contains Ordnance Survey data © Crown copyright and database right, 2013.
Local Enterprise Partnerships within or overlapping the East Midlands Region
Chart 1: Headline GVA per head indices (UK=100) NUTS2, 2011
Economic Context
Source: ONS Crown Copyright, 2012. ‘Regional Gross Value Added, 2011’.
Economic Context
Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2008 and January-December 2012. From NOMIS [accessed 24th June, 2013].
Chart 2:Employment rate (% working age residents), 2012
• The SME environment remains difficult, but some signs of improvement: – Business death rates have fallen since 2009 and business birth
rates have increased– Survival rates for new businesses have significantly decreased
since pre-recession– Small businesses (<50 employees) have been more likely to
retain staff but cut/freeze wages and investment, with resulting lost productivity
– Large businesses (>250) more likely to cut staff whilst maintaining investment and productivity levels
• Lenders report that demand for credit remains low• Despite some structural improvements, firms seeking credit
continue to report difficulties in the supply of finance• Exports have been growing moderately in recent months
EU Thematic Objective: SME Competitiveness
Chart 3: Business Births and Deaths (as a % of end-of-year count of active enterprises), 2011
Source: ONS Crown Copyright, 2012. ‘Business Demography 2011 – Enterprise Births, Deaths and Survivals.’
EU Thematic Objective: SME Competitiveness
SME Competitiveness: Business Birth Rate (as a % of end-of-year count of active enterprises), 2011
Source: ONS Crown Copyright, 2012. ‘Business Demography 2011 – Enterprise Births, Deaths and Survivals.’Contains Ordnance Survey data © Crown copyright and database right, 2013.
Chart 4: Two year business survival rate from year of birth (%)
EU Thematic Objective: SME Competitiveness
Source: ONS Crown Copyright, 2012. ‘Business Demography 2011 – Enterprise Births, Deaths and Survivals.’
Chart 5: Innovation inputs: Business Enterprise Investment in R&D (as a % of total workplace GVA), 1999 and 2009
EU Thematic Objective: Innovation
Source: Department for Business, Innovation and Skills, 2012. ‘Regional Economic Performance Indicators – Live Tables’.
EU Thematic Objective: InnovationChart 6: Employment in High and Medium-High Technology Industries (% work-based employment), 2011
Source: ONS Crown Copyright, 2012. ‘Business Register and Employment Survey, 2011.’ Data accessed from NOMIS [17th June, 2013] and analysed under Chancellor’s Notice Ref NTCBRES11-P0537.
Innovation: Employment in High and Medium-High Technology Industries (%), 2011
Source: ONS Crown Copyright, 2012. ‘Business Register and Employment Survey, 2011.’ Data accessed from NOMIS [17th June, 2013] and analysed under Chancellor’s Notice Ref NTCBRES11-P0537. Contains Ordnance Survey data © Crown copyright and database right, 2013.
EU Thematic Objectives: Employment, Social Inclusion and Skills
Chart 7: Unemployment Rate (% 16+ resident population), 2012
Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2012. From NOMIS [accessed 14 th June, 2013].
Employment, Social Inclusion and Skills: Unemployment – model-based estimates (%), 2012
Source: ONS Crown Copyright, 2012. ‘Model-based estimates of unemployment’, January-December 2012. From NOMIS [accessed 17th June, 2013].Contains Ordnance Survey data © Crown copyright and database right, 2013.
EU Thematic Objectives: Employment, Social Inclusion and Skills
Chart 8: Trends in the Unemployment Rate (% 16+ resident population), 2007-2012
Source: ONS Crown Copyright, 2013. ‘Annual Population Survey’, January-December 2007 to January-December 2012. From NOMIS [accessed 14th June, 2013].
Source: ONS Crown Copyright, 2012. ‘Annual Population Survey’, January-December 2012. From NOMIS [accessed 17th June, 2013].Contains Ordnance Survey data © Crown copyright and database right, 2013.
Employment, Social Inclusion and Skills: Resident Adults Qualified to a Level 4 (first degree) and above (%), 2012
Key Points• Some improvements (e.g. business births and deaths),
but overall economic context remains challenging• North-south or east-west divides (depending on topic)
exacerbated by the recession:– Unemployment/Social Exclusion: north-south divide– Enterprise and Skills: north-south and east-west– Innovation: east-west (M1 corridor)
• Importance of manufacturing and large firms in regional innovation activity
• Enterprise, innovation and low-carbon themes will be explored further in x2 regional round-tables
Common Issues: Leicester & Leicestershire Enterprise Partnership
SME Competitiveness Innovation Employment, Social Inclusion and Skills
GCGP, NEP and SEM- relative resilience (of Leicestershire CC) in employment/output 2008-2012
Greater Lincolnshire, SEM and NEP – pockets of high business birth rates
Construction – important employer across the East Midlands
D2N2 – high tech manufacturing in south Derbyshire/north Leicestershire (M1 corridor) – a range sub-sectors with possible inter-relationships
Greater Lincolnshire and GCGP – Food & Drink
D2N2 and Sheffield City Region – Leicester City significant increases in unemployment and youth unemployment
GCGP, NEP and SEM – South Leicestershire common opportunities related to a highly skilled workforce (and common risks of local under-employment/’brain-drain’)
Leicester & Leicestershire Economic Priorities
Caroline Boucher
GVA and Productivity
•Total GVA in the LLEP area grew by 1.5% from 2010 to 2011 (national growth 2.3%). Current GVA is £19.4b
•GVA per head is below national levels and growth rate is slower than national growth (0.7% Leicester, 1% Leicestershire, 1.4% England)
•Gap remains between local and national workplace earnings
Private Sector Job Growth
• There was a decline of 25,100 jobs in the LLEP area between 2008 and 2011
• At - 5.5%, this rate of decline is above the national rate (-2.7%)
• Employment fell from 2010 to 2011 in LLEP area (-2%), whereas grew +0.3% nationally
• Share of employment in public sector has fallen faster locally than nationally (2010 to 2011) but quite high dependency remains in Leicester City (25.4%)
Employment Structure, LLEP Area & England, 2011(Source ONS: BRES 2011, via nomis)
Employment Structure, LLEP Area & England, 2011(Source ONS: BRES 2011 via nomis)
Predicted Job Openings to 2020LLEP Area, by Sector
Top 9 Sectors – job openings Total job openings
Skills issues by level
Wholesale and retail 35,000 H M L E
Health and social work/care 21,000 H M L E
Support services (business admin) 20,000 H E
Education 19,000 H E
Manufacturing including engineering and food & drink
18,000 H M L E
Professional services 18,000 H M E
Construction 17,000 H M L E
Transport & storage 12,000 H L E
Accommodation & food 10,000 L E
Source: UKCES Data, IER/Cambridge Econometrics Model , H=High, M=Intermediate, L=Low/EntryNote: Figures include replacement demand and new job openings E=Employability Skills
Predicted Job Openings to 2020LLEP Area, by Occupation
Occupation Growth Number of job openings
Professional occupations (especially science & technology) 44,000
Managers and professional administrators 30,000
Associate professional and technical 27,000
Care, leisure, personal services (nearly all growth in care) 26,000
Elementary occupations 19,000
Administrative and secretarial 19,000
Skilled trade occupations (especially skilled electrical & metal) 18,000
Sales and customer services 17,000
Process, plant and machine operatives 12,000
Source: UKCES Data, IER/Cambridge Econometrics ModelNote: Figures include replacement demand and new job openings
Workforce qualification differences…
Level2012 data
Leicester City Leicestershire County
England
NVQ 4 equivalent (degree) 28% 30% 34%
NVQ 3 equivalent(A levels) 48% 55% 55%
NVQ 2 equivalent(GCSEs) 64% 73% 72%
Other Qualifications
10% 6% 6%
NO Qualifications 14% 8% 9.5%
LLEP Ambitions to 2020
•Create 25,000 new private sector jobs
•Attract £2b private sector investment
•Increase GVA from £19b to £23b
LLEP Priorities
•Create a business friendly physical environment through investment in infrastructure – transport, employment land, housing
•Build on our strengths in manufacturing and logistics sectors, grow the knowledge-based sectors and develop our growth sectors (space and aerospace, environmental technologies, creative design)
•Ensure skills supply meets employer demand – now and in the future
•Support people, particularly young people into the new jobs that will be created and into replacement demand
•Raise aspirations and communicate a diverse range of local opportunities
Thank you
