Agenda item

Report of the Corporate Director, Regeneration and Local Services – Funding and Programmes Manager, Regeneration and Local Services.

The Chairman introduced the Funding and Programmes Manager, Claire Williams who was in attendance to give an update as regards EU Funding (for copy see file of minutes).

The Funding and Programmes Manager reminded Members that the last update in respect of EU Funding had been provided at a meeting of the Committee in March 2016; however a lot had changed since then, especially the result of the European Union (EU) Referendum and the decision of the people for the UK to leave the EU.  It was added that there was an amount on uncertainty post-referendum and there was a need for clarity from Government in terms of the position going forward.  It was added that there was an announcement from HM Treasury in mid-August as regards money that had been guaranteed, those schemes already in place prior to the Autumn Statement, for example the Youth Employment Initiative (YEI).  It was added that the Department of Communities and Local Government had started to issue Funding Agreements for projects endorsed by the European Structural Investment Fund (ESIF) Sub-Committee; however there was still a degree of uncertainty as regards the future.  Members noted that the Chancellor of the Exchequer made a further announcement on 3 October confirming that Government would extend the guarantee for EU funding for structural and investment fund projects up to the point that the UK left the EU.  It was noted that there was a caveat in terms of the projects must “meet domestic strategic priorities and deliver value for money”.

The Committee were reminded that County Durham was a “Transition Region” in terms of EU funding and that the current level of funding for Durham was €157 million, with €537 million for the North East Local Enterprise Partnership (NELEP) area.

It was noted that European Regional Development Fund (ERDF) allocations in terms of £9.74 million contracted in County Durham with a further £46.75m ERDF in project applications in County Durham including £11.7m for JEREMIE 2, ensuring there was a strong pipeline in terms of support for Small and Medium Sized Enterprises (SMEs), innovation and research and development.  Members learned that in terms of European Social Fund (ESF) allocations, in County Durham £26.9m is contracted, with the majority of this being the YEI Programme.

Councillors were referred to Appendix 2 which set out the approved County Durham and NELEP projects and it was added that those involving Durham County Council (DCC) would be undertaken with a partnership approach with those submitted meeting our priorities, those being: the YEI; Community Led Local Development (CLLD); the Business Energy Efficiency Project (BEEP); the Durham Business Opportunity Project (DBOP); Technical Assistance (TA) and the development of a North East Water Hub.  Members noted open calls for projects, with five currently being assessed by DCLG: The North East Space and Satellite Applications Hub (NESSA); King James Enterprise Centre; Community Enterprise; Digital SME Programmes; and Solid Wall Insulation Innovation (SWii).  It was explained that DCC managed LEADER, projects supporting rural development and further projects were being considered by the Local Action Group, to make a total of 16 projects. 

It was added that a lot of hard work had been undertaken in terms of the applications and there was a number of projects in the pipeline, with awareness raising through the Council, CDEP and partners to ensure maximum uptake of opportunities for project funding.  The Funding and Programmes Manager noted that a governance process was agreed and in place, providing assurance in terms of oversight and match funding requirements.     

The Chairman thanked the Funding and Programmes Manager and asked Members for their questions, noting some comfort in terms of the Chancellor’s comments as regards funding guarantees.

Councillor J Armstrong noted that there would be more clarity following the Chancellor’s Autumn Statement and that the work undertaken by Officers in clarifying the situation in relation to EU Funding was much appreciated by Members.

Councillor B Kellett noted that on page 14 it referenced 15 year olds in terms of the YEI DurhamWorks programme.  The Funding and Programmes Manager noted that the programme could work with young people from that age, as the programme was an EU scheme, those from 15 were eligible if they had left school.

Councillor H Nicholson referred to page 12 paragraph 6 and noted some concern as regards the Autumn Statement and that currently there was more money unallocated than allocated and that there was a need to keep an eye on funding progress.  The Chairman reminded Members that EU Funding issues were being centrally led and reiterated that the phrase “strategic priorities” had been used, so indeed it was something that would need to be followed very carefully.   

Resolved:   

(i)              That the report be noted.

(ii)             That the Committee receive further update reports as the programme progresses.