Agenda item

Report of the Corporate Director of Regeneration and Economic Development – Funding and Programmes Team Leader, Regeneration and Economic Development.

The Chairman introduced the Funding and Programmes Team Leader, Regeneration and Economic Development, Catherine Pearson who was in attendance to give an update as regards the EU Funding (for copy see file of minutes).

The Funding and Programmes Team Leader thanked the Committee for the opportunity to provide an update in respect of EU Funding and reminded Members that the last update had been provided in September 2015 and since then the EU Programme had been signed off and agreed by the Commission.  It was added that due to fluctuations in the exchange rate of Sterling and the Euro, there had been a need to look to review this twice yearly and this in turn meant that local indicative allocations were also subject to change.  Members noted that this, in addition to some Government changes to local allocation, meant a refresh of the ESIF Strategies was required, and the ESIF Strategy for the North East Local Enterprise Partnership (NELEP) area was submitted to Government on 5 February 2016.

The Committee noted the report referred to allocations in terms of support for those young people Not in Education, Employment or Training (NEETs) had been negotiated to £5.2 million, up from £880,000, to include preventative activities in order to help prevent people becoming NEET.  It was noted changes had meant the removal of funding for Sustainable Transport, with only Cornwall and the Isle of Scilly remaining eligible in this regard.

The Funding and Programmes Team Leader explained that Open Calls included: European Regional Development Fund (ERDF) for innovation and business support and low carbon and European Social Fund (ESF) for the Youth Employment Initiative (YEI) and employability support.  It was noted that Durham was hosting an event in respect of Low Carbon, with the Department of Communities and Local Government and the Department for Energy and Climate Change, in order to scope out what activities could be funded under this priority.  Members were reminded of the YEI allocation, the DurhamWorks branding and noted Service Level Agreements (SLAs) were being drawn up for delivery partners to be in place early April 2016.

The Committee learned that Community Led Local Development (CLLD) would be a tool, similar to LEADER to provide small community led interventions.  It was added that two bids had been submitted in terms of preparatory funding for North Durham and South Durham, in order to assist them in the preparation of Local Development Strategies for each area.

In terms of full applications, Members noted responses to open calls in respect of NETPark Explorer, Durham Business Opportunities Programme and the Business Energy Efficiency Programme, with Business Support, and upon further information, the latter two were submitted and would be managed via the Sustainability and Climate Change Team and Business Durham.  It was added that in respect of a submission by Durham University in terms of a project to develop a Water Science Hub, further to the information set out in the report, a submission was made in time.  Members were made aware of some Skills Funding Agency (SFA) invitations to tender in terms of NEETs and Community Grant and also were reminded of the LEADER programme, with two areas in County Durham, North Pennines Dales and Durham Coast and Lowlands.  It was noted that for both areas, Local Action Groups had been established bringing together individuals from local public, private and community sectors to be responsible for decision making, establishing direction, strategy and priorities of individual programme.  Members noted that Twitter and Facebook accounts were in development in respect of promoting these, with the DCC website and Partnership website being used in addition, with bespoke sites for each to be developed and it was added that press releases had received good local coverage.

The Funding and Programmes Team Leader concluded by noting the flowchart at Appendix 3 of the report in terms of the project application process and lessons learned from the ERDF calls would be being adjusted to streamline the process.

The Chairman thanked the Funding and Programmes Team Leader and asked Members for their questions on the update report.

Councillor J Armstrong asked a question on behalf of Councillor M Davinson who was not in attendance at the meeting, the question was regards: Community Led Local Development; the opportunities for Members to be involved; how the CLLD was publicised; was it effectively two LEADER programmes, with a focus on rural issues; and were AAPs involved, noting that Stanley AAP had a Task Group that may be suitable to provide input.  The Funding and Programmes Team Leader, Catherine Pearson noted that Members could be involved in the CLLD process, with AAPs being the conduit used.  Members noted that the Principal AAP Coordinators Andrew Megginson and Lee Copeland were leading on the issue.  It was added that the key publicity would be via the consultation process which would be via external consultants appointed and AAPs, with the message as regards the CLLDs and the involvement and support in setting up Local Action Groups (LAGs) to be highlighted.  Members noted that the first steps were in terms of preparatory work on Local Development Strategies and that the process was a competitive one, with submissions to be made to Government and if successful, activity would be likely begin Spring 2017.  The Funding and Programmes Team Leader added that LEADER was mentioned within the report alongside CLLD as the CLLD approach was based upon the LEADER model, adding that LEADER covered rural areas and CLLD the majority of the other areas, albeit with some small gaps.

Councillor O Temple added that it may be useful for Members to have information in terms of the top 20% deprived Wards as mentioned in the report and that the relevant Members were notified in terms of work and bids in their areas.  Councillor H Nicholson noted reference within the report to “DurhamWorks New Employment Zone” and asked what this meant, and asked whether funds were ringfenced to particular areas. 

The Funding and Programmes Team Leader noted that it was for the whole of the County and that there would be focus on NEET hotspots and to help vulnerable groups.  It was added that in relation to the point raised by Councillor O Temple, at the consultation stage all Members would be contacted.

Councillor J Clare noted that he assumed his Division, Aycliffe North and Middridge fell outside of the South Durham CLLD area however it is hoped that the division will fall under the LEADER programme.  The LEADER Programme has a focus on rural and farming issues which may result in his area falling into a gap in provision”.  The Funding and Programmes Team Leader noted Newton Aycliffe was a rural hub town and that while LEADER did include farming, cultural heritage and rural issues there was more potential in terms of flexibility under LEADER than CLLD in terms of being able to provide support to any micro-business as CLLD would focus on business support, business space via ERDF and social inclusion via ESF.  It was highlighted that areas are not ruled out from funding via the main programme if they also qualify for funding under LEADER/CLLD.

Councillor D Hall asked as regards more information in respect of small grants under the Community Grant, as set out in the report.  The Funding and Programmes Team Leader noted that they were grants to the voluntary and community sector (VCS) that did not require match funding for the purpose of mobilising disadvantaged or excluded unemployed and inactive people into positive activity, moving them closer to entering the labour market.  A body would be appointed to oversee the distribution of these grants, with the tender currently out for this and the SFA to evaluate and feedback by Summer 2016.

Resolved:       

(i)              That the report and views on the direction of travel of the emerging programme be noted.

(ii)             That the Economy and Enterprise Overview and Scrutiny Committee receive further reports as the programme progresses.