Agenda item

EU Funding - Progress

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

Minutes:

The Chairman introduced the Funding and Programmes Manager, Claire Williams who was in attendance to provide the Committee with an update report in relation to European Union (EU) Funding (for copy see file of minutes).

 

The Funding and Programmes Manager reminded Members she had attended Committee previously and that the update was in terms of the progress made since November 2018.  Councillors were reminded that County Durham was a “Transition Region” and therefore had a ring-fenced allocation of EU funding of £155 million.  It was added that this was split between just over £86 million European Regional Development Fund (ERDF) and approximately £69 million European Social Fund (ESF).  The Funding and Programmes Manager noted the County also benefited from a share of £10.5 million European Agricultural Fund for Rural Development (EAFRD) funding to support rural development in the NELEP area had two LEADER programmes worth £4 million.  She noted that a breakdown of allocations was set out at page 38 within the agenda pack.

 

 

 

The Committee were informed as regards a range of ongoing projects, set out within the report, and were referred to details relating to the LEADER programme, as requested by Councillor R Bell at Corporate Overview and Scrutiny Management Board.  The Funding and Programmes Manager noted that the LEADER Programme was now closed to applications, with a total of 95 projects having been supported under the programme, mostly small and micro businesses.  She explained that the evaluation of the project was underway and that the programme had been seen to be very good, the support received by applicants having been greatly valued.  It was noted that the help provided to applicants in terms of developing business plans had been appreciated and businesses had asked for this type of support to continue.

 

The Funding and Programmes Manager explained that EAFRD was at Round 3 and that as there had been considerable attrition in the programme nationally, a Reserve Fund of pooled resources had been created.  It was noted of £5 million within the NELEP area, around half had been approved to projects in County Durham.

 

Members were informed that there had been little detail received from Government in terms of the UK Shared Prosperity Fund (UKSPF) and that the Council was working with regional and national bodies in terms of lobbying in respect of the UKSPF.

 

The Chair thanked the Funding and Programmes Manager for her update and asked Members of the Committee for their comments and questions.

 

Councillor J Atkinson referred to paragraph 13 of the report and asked for further information in relation to the ERDF and ESF funds being “pooled at a national level”.   The Funding and Programmes Manager noted that if funds were not committed or in the pipeline they would be pooled nationally.  She added that an example was low carbon projects, where it had proven difficult in many Local Authority areas in meeting eligibility criteria and providing match funding, therefore uncommitted funding would then go into the national pool.

 

Councillor M Wilkes noted that if the UK had not been leaving the EU, it would have been likely that County Durham and Teesside would have been allocated more EU funding in the future.  He added he did not feel that Government would provide funding in the future to the current EU level, and certainly not at any potential higher level.  Councillor M Wilkes noted a lot of projects that would end by 2022 and that he felt that if there was not something put in place by Government during the period of transition, or Council funds were not used, there was a risk to projects and the  staff associated with those projects.  Councillor M Wilkes asked how much we would need to invest and match-fund to keep projects going and when would we need the money.  He added he felt it would be a great loss to the Council if those highly skills officers were not retained. 

 

The Funding and Programmes Manager noted that where possible we had looked to extend projects as much as possible, for example DurhamWorks.  She added that 2022-23 was flagged in terms of service risk, and it was noted that there would be lobbying in terms of future funding.

 

Councillor R Crute noted in terms of the UKSPF that, time after time, there had been no answer from Government on the details.  He reiterated that there had been lobbying by regional bodies, however, we were still unsure as regards the level of funding and the governance arrangements that would be in place.  Councillor R Crute noted that in terms of Brexit, it would be after 31 January 2020 when the work would actually begin, and he had concerns as regards the amounts of funding and the governance arrangements.  He highlighted the need to continue to lobby Central Government.  Councillor E Adam noted that paragraph 22 of the report stated that the 2019 Conservative Party manifesto had reiterated the commitment as regards the UKSPF.  He noted he was not convinced as regards a Conservative Government basing such a fund on need and referred to paragraph 24 mentioning mayoral combined authorities and LEPs adding he felt Government would work more closely with mayoral combined authorities. 

 

Councillor E Adam also noted the number of jobs created through the LEADER programme and asked how many of those were sustainable and how they were monitored.  The Funding and Programmes Manager noted that the LEADER Programme Team would monitor the outcomes, with evidence being required in terms of items such as wage slips.  She added there was a requirement in terms of projects having to submit a post-project report after one year, however, longer term monitoring over three to five years was not undertaken.  The Strategy and Project Development Manager noted that mayoral combined authorities could appear to have a louder voice in some cases and there was a need to be able to develop a bespoke argument for the North East, with Local Authorities, through organisations such as the County Councils’ Network and others, to lobby Government.  Councillor E Adam noted it would be important to hold Government to account as there had been many promises made to people in the North East during the general election campaign and Government would need to deliver upon them.

 

Resolved:  

 

(i)           That the report be noted.

(ii)          That the Economy and Enterprise Overview and Scrutiny Committee receive further reports as the programme continues as part of 2020/21 Work Programme.

 

Councillors S Dunn and M Wilkes left the meeting at 10.45am

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