Agenda item

Report of the Corporate Director of Regeneration and Economic Development.

The Chairman thanked the Head of Strategy, Programmes and Performance, Regeneration and Economic Development, Andy Palmer who was in attendance to give an update to Members in relation to the EU Funding Programme (for copy see file of minutes).

The Head of Strategy, Programmes and Performance explained that there were various strands to the EU Structural Funds Programme and that the programme for 2014-2020 had yet to be approved.  Members noted that the programme was in effect a national one and the UK Government was in negotiation with the EU Commission regarding the English Operational Programmes (OPs).  It was explained that the Government had given LEPs the role of preparing board strategies for investment themes in their areas.  Councillors learned that there were 5 strategic objectives in relation to the European Structural Investment Fund Strategy (ESIF) those being: Innovation; Business Growth; Low Carbon; Inclusive Growth; and Skills.

Members were reminded that as County Durham was a “Transition Region”, it was unique within the NELEP area, having a sub-allocation of £135 Million.  It was noted that the CDEP was an advisory board, with the following work streams of: innovation; enterprise and business support; access to finance; capital infrastructure; youth unemployment; social inclusion; adult skills and employability; and low carbon/sustainability.  Members noted that the YEI funding mentioned in a previous item was a separate fund from the EU Structural Funds Programme. 

It was explained that there was a degree of tension between the EU and Government in respect of the role of LEPs, and that the Combined Authority (CA) acted as a sub-committee in respect of the national group.  It was added that this meant DCC had representation through both the CDEP and CA, with the Department for Communities and Local Government (DCLG) looking for a steer from this “local group”.

Members were referred to Appendix B of the report which set out the areas of potential DCC project activity identified through the CDEP, including: reducing homelessness; supporting SMEs in the food, drink and retail sectors (where linked to the visitor economy); low carbon economy; and apprenticeships. 

Councillors learned that in addition the majority of the Area Action Partnerships (AAPs) had some form of job creation within their list of priorities. 

The Committee noted that the project proposals would be finalised by Easter 2015, with projects then applying to the Programme.  It was added that there had been engagement with partners and briefings had been held with the local M.E.P.s and M.P.s.

The Chairman thanked the Head of Strategy, Programmes and Performance and asked Members for their questions on the report.

Members asked questions in respect of: was the EU Structural Funds Programme affected by the £1.7 Billion that the UK were being asked to pay to the EU as mentioned in the press; how the OPs fitted in with the CA; Government “Opt-ins” where match funding is not required; and further information for Members in respect of EU Funding.

The Head of Strategy, Programmes and Performance noted that the issue being discussed in the press regarding the £1.7 Billion was not connected to the issue of EU Structural Funds Programme.  Members noted that there was some EU debate as regards the OPs, including issues of Flooding, ICT and Sustainable Transport and also where national issues would then impact on the UK regions, an example being transport.  The Head of Strategy, Programmes and Performance explained that the CA funds were via the NELEP, devolved from the Department for Transport (DfT) and some Government Departments, with a single Transport Authority for the region.  It was added that the technical expertise in dealing with EU Funding bids sat with the Local Authorities, and the CA and therefore support could be offered to the NELEP, working with local partners.

The Head of Strategy, Programmes and Performance noted that in the past ESF was handled nationally and ERDF was handled at a regional level, however, now Government note the LEPs have a say in respect of programmes and can “opt-in” to the Government programme with the LEPs then “buying programmes” from Government Departments, a prospectus being available on the Department for Business, Innovation and Skills website.  It was added that there had been a Members’ Seminar on EU Funding approximately 6 months ago, though further sessions could be arranged if Members wished.

Resolved:

(i)              That the Economy and Enterprise Overview and Scrutiny Committee note the update report.

(ii)             That the Economy and Enterprise Overview and Scrutiny Committee receive a further progress report at future meeting of the Committee.