FOREWORD 4 1. INTRODUCTION 5 2. APPROACH TO DELIVERY 6 3. INNOVATION THEME 7 4. BUSINESS SUPPORT AND ACCESS TO FINANCE THEME 10

Transcription

1 1

2 2

3 Table of Contents FOREWORD 4 1. INTRODUCTION 5 2. APPROACH TO DELIVERY 6 3. INNOVATION THEME 7 4. BUSINESS SUPPORT AND ACCESS TO FINANCE THEME INFRASTRUCTURE FOR ECONOMIC GROWTH THEME EMPLOYMENT, SKILLS AND SOCIAL INCLUSION THEME COMMUNITY APPROACH OPTIONS CONSULTATION SUSTAINABLE URBAN DEVELOPMENT STRATEGY IN NOTTINGHAM 51 APPENDIX A: INDICATIVE TIMETABLE OF ACTIVITY 53 APPENDIX B: DRAFT SCHEDULE OF CALLS / OPT-IN COMMISSIONS 56 APPENDIX C: ALLOCATION PROFILE 2015, 2016, APPENDIX CI: REPROFILED ALLOCATION IF ERDF OPERATIONAL PROGRAMME APPROVAL IS DELAYED 66 APPENDIX D: PROJECTED OUTPUTS SUMMARY 2015, 2016, APPENDIX E: GLOSSARY OF TERMS 68 APPENDIX F: SURVEY 69 THIS IS A CONSULTATION DOCUMENT TO INFORM THE DEVELOPMENT OF A LOCAL IMPLEMENTATION PLAN FOR THE D2N2 EUROPEAN STRUCTURAL AND INVESTMENT FUND STRATEGY. THE FINAL CONTENT AND TIMINGS OF CALLS WITHIN THE PLAN WILL BE SUBJECT TO FINAL AGREEMENT OF THE ENGLAND OPERATIONAL PROGRAMMES FOR THE EUROPEAN SOCIAL FUND (ESF) AND EUROPEAN REGIONAL DEVELOPMENT FUND (ERDF). 3

4 Foreword Working in partnership, we are committed to using D2N2 s local allocation of European Social and Investment Funds (ESIF) for the 2014 to 2020 programme period to deliver D2N2 s ambitious Strategic Economic Plan. ESIF funds will be fuel in the tank to help drive skills, employment, social inclusion, innovation, economic infrastructure and business growth. The approach set out in this Consultation Document is to invite applications for interventions of scale and impact to maximise the value of ESIF funding for the D2N2 area. To refine our approach, we need your views and would urge you to respond to via our survey ( There is a wealth of existing practice that we can learn from and take the best elements forward into the new programme but this funding is about doing more than would be done anyway. We would encourage applicants to be ambitious to get the greatest value from the programme for our local area. We want businesses and individuals from across our area to benefit from ESIF funded programmes and projects but this does not mean that all delivery needs to be LEP wide. The projects and programmes to deliver our strategy may be local, LEP wide or collaborative with other LEPs within and beyond the East Midlands, determined by whatever is the most efficient and effective way to achieve the outputs and outcomes we seek. We recognise that until the UK Government has agreed its Operational Programmes with the European Commission the content and focus of our local approach may be subject to change. However, we will aim to continue to ensure that the activity to be supported by our ESIF funding allocation is driven by our local strategy and that our local programme is open for business at the earliest opportunity. A key purpose of this document is not only to invite your input to shape and refine our approach before the programme opens but to give prospective applicants early notice of the potential shape of our programme, how ESIF funding could work and to provide a framework for putting together those transformative projects and programmes that we will seek to fund. If you want to talk to D2N2 LEP about the approach or potential project ideas, please contact esif@d2n2lep.org. Peter Richardson Chairman, D2N2 Local Enterprise Partnership and Chairman Elect of the D2N2 ESIF Programme Board Ian White Team Leader, DCLG Growth Delivery Team and Vice-Chairman Elect of the D2N2 ESIF Programme Board 4

5 1. Introduction In its Strategic Economic Plan, the D2N2 Local Enterprise Partnership set a vision for our area to have a more prosperous, better connected and increasingly resilient economy with a headline target To support the creation of 55,000 additional private sector employee jobs in D2N2 by 2023 The D2N2 LEP has the responsibility to develop the local strategy for the use of European Structural and Investment Funds between 2014 and 2020 and to identify the activities and operations that should be funded to deliver that strategy. The D2N2 ESIF programme represents a major source of investment which has the potential to make a significant impact on the D2N2 economy over the next seven years. It is envisaged the investment will result in: Nearly 5,000 businesses receiving support in relation to innovation, ICT, competitiveness and low carbon Over 400 new enterprises supported Over 15,000 individuals supported in relation to employment, nearly 8,000 supported in relation to social inclusion and over 15,000 in relation to skills Nearly 2,500 businesses supported to improve skills levels and employability. This consultation document sets outs a draft approach for translating the agreed D2N2 ESIF Strategy from May 2014 (that can be downloaded from into a delivery programme using open calls, opt-ins and potentially other routes that will be set out in a Local Implementation Plan. The purpose of this document is to shape and inform the approach to be se out in the final Plan. Spend and outputs are programmed according to the outputs in our ESIF strategy submitted to Government in 2014 and the timetable most recently communicated by Government attached as Appendix B. However, we consider it likely that the output definitions and timescales for launch may change as a result of the continuing negotiation of the national Operational Programmes between the UK Government and the European Commission. Indeed, we are already aware that Thematic Objective 7 relating to sustainable transport now only applies to Cornwall and the Isles of Scilly. We consider there is a greater risk of delay to the approval of the ERDF operational programme than the ESF operational programme. Appendix C details our anticipated programme of spend according to the approval timescale at Appendix A. Appendix Ci is an indicative revised programme should there be a delay beyond January 2015 in the agreement of the ERDF operational programmes. Potential applicants for ERDF funding should be aware that there is a possibility that funding from the programme cannot begin to be drawn down until

6 2. Approach to Delivery D2N2 intends that benefits of ESIF funding should be available to individuals and business across the D2N2 area. In its ESIF strategy the LEP set out its intention to promote flexibility, speed, delivery focus and efficiency in deploying funds and pursue a blend of collaborative, LEP wide and more local approaches to deliver better outcomes. In D2N2 s strategy development work, a range of activities are identified that can be brought forward using ESIF funding to deliver the Strategic Economic Plan. Where ESIF funding is matched at source such as through opt-ins with the Skills Funding Agency and the Department for Work and Pensions, the approach set out here is to be specific about the services that we wish to see delivered and the skills, employment and social inclusion funding has been designed to form an integrated programme with the aim of supporting people to move closer to, into and upwards within the labour market. In most other areas funding is not matched at source so the approach is to provide for large calls to enable applicants to combine activities to promote applications of scale and impact. The exception to this is where there is a specific requirement, such as the implementation of the D2N2 Growth Hub. The primary objective of our ESIF funding is to support the delivery of our Strategic Economic Plan. In all our activity, we will wish to see the cross-cutting themes of sustainability and equality suitably promoted. This consultation document is structured around the key themes of our Strategic Economic Plan. Applicants will be invited to bid across themes and the LEP is looking for activity to be large scale and joined up to avoid duplication. To ensure that the value of ESIF funds is maximised locally, we aim to get as much of our programme open for applications as early as possible, within limits of practicality. This may mean that the LEP and partners face a challenge to ensure that a range of calls and associated tender specifications are ready to go at an early stage and it may be that applicants will face a challenge to respond to a comprehensive open call. The LEP does not intend to make ESIF funding commitments to projects or programmes for longer than 3 years, in line with national guidance. This Consultation Document sets out a draft three year delivery programme for the D2N2 LEP s ESIF funds, the timescale of activity and the routes for commissioning or inviting applications. The final Local Implementation Plan will be a rolling document, annually refreshed, that provides for a 3 year programme of activity. This document also seeks your feedback on a short number of key questions to help shape our final approach. Your feedback is much appreciated and can be left at PLEASE SUBMIT YOUR FEEDBACK BY MIDDAY, FRIDAY 14 th NOVEMBER

7 3. Innovation theme Strategic Approach From being the cradle for the industrial revolution and home to the world s first factory D2N2 is a dynamic and diverse economy with enduring excellence in cutting-edge manufacturing and engineering, particularly transport, life sciences and construction. To achieve the ambitions of the D2N2 strategic economic plan, we need to put in place the infrastructure and conditions that will support business and employment growth, including an innovation ecosystem that commercialises cutting edge R&D and supports product and process innovation within businesses, including developing the skills needed to develop more innovative businesses and driving innovation through supply chains; D2N2 s Innovation Strategy, Time to Innovate sets out the LEPs strategic framework for supporting innovation, particularly through the allocation of European Structural and Investment Funds. It sets out three key areas of focus for activity, including business support for innovation, infrastructure for innovation and exploiting the knowledge base. The D2N2 Innovation Strategy can be downloaded from Approach to Implementation The funding for this theme will be primarily drawn from the European Regional Development Fund and made available through an open call. There will be the opportunity for applicants to seek to access European Social Fund to run complementary higher skills activities. Under the Key Activities in the D2N2 ESIF Strategy, the LEP has identified a range of activities that it would wish to promote using ESIF funding to support businesses to grow, innovate and create employment. These are activities that fit with our strategies, although applicant may propose other activities where a case is made that they will more effectively deliver our strategy, In order to promote interventions of scale and sustainable impact, D2N2 would wish to see comprehensive applications that, perhaps encompassing a number of activities although applications for focused activities will still be considered on their merits. The approach set out here is to encourage applicants join up activities within the Innovation, Business Support and Access to Finance themes. The calls will not be prescriptive about delivery geography and, wherever possible, flexible about delivery methodology but D2N2 would wish to see firms from across the D2N2 area be able to access innovation support funded by the D2N2 ESIF allocation. Moreover, D2N2 will consider collaborative bids across LEP areas where it demonstrably adds value to delivery. As most of the activities in the innovation and business support themes require match funding from applicants and to allow applicants to develop applications of scale and impact, it is proposed to roll most of the activities into a single large call to be opened as soon as is practicable, ideally Q The call will be for a defined period. It is anticipated that, depending on progress on allocating spend and outputs, further calls will be necessary with the frequency and content of calls being kept under review by the D2N2 ESIF Programme Board. It is anticipated that a second call will be opened in Q Activities Key : 1 Smart specialisation collaborative research between enterprises, research Institutions and public institutions Thematic Objective: 1 Research and Innovation 1.1: Catapult Centre(s) for Priority Sectors This activity will support the businesses within key sectors to access the benefits of potential Catapult Centres. For example a digital catapult centre would support the development of a local open data ecosystem across the East Midlands to unlock creativity around data assets, 7

8 including those that are currently inaccessible, and act as a model for other such initiatives both nationally and internationally. When and how procured There is the potential for alignment with other Catapult Centres and the Technology Strategy Board competitions and to support cross LEP activity with, for example, Leicester and Leicestershire LEP to develop regional nodes of excellence. Through flexible Business Support and Innovation call. Q1.Collaboration with other neighbouring LEPs. 1.2: Business Support for Innovation This activity builds on the recommendation of the Innovation Plan to develop a Time to Innovate Toolkit. Where possible a collaborative approach would be welcomed. Organisations would be able to submit proposals to deliver the whole Toolkit or specific elements. and delivery would need to demonstrate a D2N2 wide offer tailored to business needs. Link in terms of referrals and data capture of beneficiaries to the Growth Hub would be essential and mechanisms to achieve this would be required in any submission. Elements to be included can be found in the Innovation plan. Methods to assist Business Support for Innovation could include: An Innovation Voucher enabling businesses to procure support from their preferred or provider be that academia; HEIs, Further Education institutions, an OEM, Tier 1 business to assist collaboration between SMEs and peer mentoring. Innovation Coaching for leaders of businesses with high-growth potential, levering in funding from national programmes; A industry-based Knowledge Economy Higher Skills Scholarship A package of support for technology-based innovation, aligned with the Technology Strategy Board; and Early-stage finance for innovation-led start-ups, filling a gap in the market. When and how procured Delivery could be through; Events (& networks) Advisors (innovation sector specialisms ) Innovation-led start-ups (those enterprises with ambition to grow) Coaching SME business leaders Accessing the knowledge base, including o Accessing technical expertise + technology-based support package, alongside TSB o Developing specialisms (inc cross LEP sectors) Innovation centres network (physical locations) Knowledge transfer Partnerships (KTPs) Supply chain development Innovation Evidence & research base (to promote D2N2 offer) Venturefest Placements (undergraduate, graduate, postgraduate) into SMEs Through flexible Business Support and Innovation open call. Q1 where multiple contracts could be awarded for elements of the Innovation provision. The early-stage finance for innovation-led start-ups may be part of a JEREMIE platform of other FEI subject to collaborative ex-ante assessment of access to finance market failure and options appraisal. 1.3: "Start to Innovate" encouraging pre/new start innovation This activity aims to support innovative start-ups and is a direct action from the Innovation Plan following wide consultation to target those with 8

9 ambition for growth whilst recognising innovation by its nature takes time to develop into flourishing businesses. When and how procured Through flexible Business Support and Innovation open call. Q1. Key : 2: Support for the Commercialisation and Enterprise of New Products and Business Processes Thematic Objective: 1: Research and Innovation 1.4: "Finance to Innovate" to support routes to market, collaboration with Opt Ins This activity aims to support innovative firms to access and be ready to access finance to support growth. It is a direct action from Innovation Plan following wide consultation. When and how procured Through flexible Business Support and Innovation open call. Q1. The finance to innovate activity may be part of a JEREMIE platform of other FEI subject to collaborative ex-ante assessment of access to finance market failure and options appraisal. When and how procured 1.5: Sector Innovation SPARK OFF Fund (to encourage cross sector innovation) This activity encourages cross sector collaboration to support innovation. It will provide a mechanism to stimulate a sharing of knowledge between the key sectors with the aim to produce stronger alliances and product development and sharing of best practice. Time will be required for Sector support to be put in place and therefore such a fund will need time for businesses to work up ideas and the Sector Advisers to lay foundations to maximise the usefulness of such a fund. Through flexible Business Support and Innovation call. Q1 Key : 3. Investment in the development of Innovation Space and Facilities, facilities, including equipment, with the capability to serve as a platform, catalyst and host for innovation and innovative relationships. Thematic Objective: 1: Research and Innovation When and how procured When and how procured 1.6: Capital investment Programme for network of Innovation Centres (infrastructure and equipment) This activity complements the D2N2 Business Growth Hub with a suite of physical locations to enable businesses to access the range of business services and advice. A review to be undertaken of the current offers and suitable facilities to meet business innovation needs. The aim being to provide targeted support for existing facilities rather than supporting new provision. Through flexible Business Support and Innovation call. Q1 1.7: "Technology to Innovate" (specialist support to access technology experts) Direct action from Innovation Plan following wide consultation. Through flexible Business Support and Innovation call. Q1 To support innovation skills, it is planned to open a call for applications to the ESF element of D2N2 ESIF funds to support higher level skills to run in parallel with the business support and innovation call. 9

10 4. Business Support and Access to Finance Theme Strategic Approach Given D2N2 s employment growth targets, and the current gap in the business base, encouraging higher levels of enterprise and stimulating growth within the existing SME base will be a crucial part of our overall Strategic Economic Plan. We have identified priority sectors which will be a focus for our activity but providing a consistent and coherent business support and finance offer across D2N2 is a key aim. This will ensure all growing businesses (in any sector) can access the support they need, enable SMEs to understand the support available and ensure they are provided with the most appropriate provision. To achieve the ambitions of the D2N2 strategic economic plan, we need to put in place the infrastructure and conditions that will support business and employment growth, including a business support system that responds to the specific needs of businesses in the D2N2 area and promotes business start-up and growth and a range of tools to ensure that businesses can access the financial support they need; The D2N2 SEP identifies access to finance as a key barrier affecting business formation and growth. Businesses have faced the double challenge of a lack of internal funding to support growth given the challenging trading conditions which many have faced in recent years, combined with difficulty in accessing external funding in the aftermath of the credit crunch. Access to capital to support business formation has been a particular challenge. The D2N2 Business Growth Hub will draw business support activity together by providing an on line service with a range of business advisers available to provide a bespoke diagnostic and growth package for businesses. By using the Innovation & Technology Centres around D2N2 and through evidence of need identifying gaps across the area; a physical network will complement the service to assist businesses. Research suggests that access to and effective use of broadband can stimulate company growth, market development, knowledge flows, new businesses and improved productivity as well as access to the labour market for specific excluded groups, such as carers and some disabled people. Through allocating 10% of its ERDF resource to ICT activities, D2N2 has put significant funding behind ensuring that the provision and usage of high speed digital connectivity can accelerate economic growth in our area. Approach to Implementation In the D2N2 SEP and its ESIF Strategy, the LEP has identified a range of activities / operations that it would wish to promote using ESIF funding to support businesses to grow and create employment. As most of the activities in the innovation and business support themes require match funding from applicants and to allow applicants to develop applications of scale and impact, it is proposed to roll most of the activities into a single large call. D2N2 would wish to see comprehensive applications that, perhaps encompassing a number of activities, provide for a programme of scale and sustainable impact although applications for focused activities will still be considered on their merits. The activities identified below are those that fit with D2N2 strategies, although we will consider applications for other activities where a case is made that they will more effectively deliver our strategy The calls will be for a defined period. It is anticipated that, depending on progress on allocating spend and outputs, further calls will be necessary with the frequency and content of calls being 10

11 kept under review by the D2N2 ESIF Programme Board. It is anticipated that a second call will be opened in Q D2N2 will not be prescriptive about delivery geography and, wherever possible, flexible about delivery methodology but would wish to see firms from across the D2N2 area be able to access business and access to finance support funded by the D2N2 ESIF allocation. D2N2 will consider collaborative bids across LEP areas where it demonstrably adds value to delivery. In a few areas, we will be very specific about the services that we wish to see funded and how they will operate. In particular, D2N2 will look specifically to support the operation of a Growth Hub to provide for co-ordinated access to business support services and would expect other ERDF funded business support services to have a clear relationship with the Growth Hub. The suggested framework of activities and expenditure profile set out below differs slightly from the approach set out in the ESIF Strategy. The commitments to the ERDF opt-in services proposed by Growth Accelerator, UKTI and Manufacturing Advisory Service has been reduced due to continuing uncertainty about their eligibility and to allow other approaches, including implementation through the Sustainable Urban Development Strategy (SUDs) for Nottingham. It is also proposed to reduce the total funding left unallocated, pending further collaborative investigations, to potentially support enhancements to SME Access to Finance (from 19,000,000 to 11,750,000 over the life of the programme). Further, spending under Thematic Objective 7, sustainable transport, has been ruled ineligible by the European Commission in all LEPs except Cornwall and the Isles of Scilly. and spend has been re-profiled, as far as possible to fund the intended activities under the SME Competitiveness and Low Carbon Thematic Objectives / Priority Axes. D2N2 has responded positively to the invitation from Government in May 2014 for Core Cities to develop Sustainable Urban Development Strategies (SUDS) for more local direction of up to 10% of ERDF Funds. In D2N2, the SUDS strategy for the Greater Nottingham area will focus on; 1. Sustainable Growth for the Creative and Digital Industries Sector and investment and extension of the Nottingham Creative Quarter model. 2. Sustainable Growth for the Manufacturing and Clean Technology Sector 3. Sustainable Growth for SMEs in Nottingham s outer urban areas It will draw on funding from the SME Competitiveness and Low Carbon Priority Axes. More details on SUDs are provided in section 8. Activities Key : 4. Helping Businesses Benefit from ICT through increased awareness of the local ICT offer, improved ICT connections, new product and service offers using enhanced ICT networks, knowledge and skills; and investment in ICT infrastructure where it can be demonstrated to be required Thematic Objective: 2: ENHANCING ACCESS TO, AND USE AND QUALITY OF, ICT When and how procured 2.1: Demand stimulation & sign up to S/F Broadband To complement and work within the BDUK activity and work in the cities. A key infrastructure requirement, demonstrated through evidence in Sector plans for businesses of all sizes within D2N2 is broadband and the ever growing demand for faster speeds to ensure D2N2 businesses are at the cutting edge, particularly with the D2N2 aspirations in areas such as open data sources and high tech growth. Through flexible Business Support and Innovation call. Q1 2.2: Business Transformation through ICT Adoption (training & independent diagnostic of hardware and software) All Sectors require ICT up skilling especially social media, but for those with 11

12 When and how procured When and how procured + When and how procured growth potential the provision of an independent diagnostic is critical to assist their investment plans. Through flexible Business Support and Innovation call. Q1 2.3: Enhanced Connectivity for Businesses To support high growth, heavy data use firms (i.e. Open data sources To address market failure for high speed access for business. Potential links to the Digital Catapult proposal to TSB and the Creative Industries Sector Plan. Potential for superfast voucher programme. Through flexible Business Support and Innovation call. Q1 2.4: Final mile / last 5% community solutions to Broadband (Rural) Part of the EAFRD Programme at present, subject to EU Commission decision on broadband support, and if not required funding shall be switched to Grant support strand Through EAFRD and potentially through call aligned with economic infrastructure calls. Key : 5. Helping Business Grow through business growth strategies, new markets, productivity improvement and resource efficiency activities; access to finance; investment readiness programme; incubation and Grow On Space including support services where there is market failure Thematic Objective: 3: ENHANCING THE COMPETITIVENESS OF SMES 3.1: High Growth Programme (Growth Accelerator Opt-In) Research suggests that a relatively small number of high growth firms contribute significantly to job creation. Growth Accelerator provides dedicated services to support firms with growth potential. D2N2 will work with the providers of the Growth Accelerator Service to ensure that national funding earmarked for the D2N2 area is targeted effectively on the needs of local businesses and localised delivery is effectively embedded with the D2N2 Growth Hub). Targets will be developed to demonstrate D2N2 wide activity and strong links made and referrals shared with the Growth Hub adviser team. Growth Accelerator contracts to include the requirement to link/feed into D2N2 Growth Hub to collaborate with other Business Advisers and be part of the integrated "bespoke business diagnostic". When and how procured Through the Growth Accelerator opt in, however there is continuing uncertainty from national government about the eligibility of the Growth Accelerator opt in and other ERDF opt-ins. Level of opt-in will be subject to consideration of a clarified offer from Government remaining appropriate and providing for suitable local direction of delivery. 3.2: Manufacturing Advisory Service (MAS Opt-in) Manufacturing continues to be a major part of the D2N2 economy, providing 122,000 jobs and accounting for 13.9% of total employment compared to 8.7% nationally. The Strategic Economic Plan states that D2N2 will prioritise activity that supports these sectors but we will remain agile to support growing businesses in other sectors, including the wider advanced manufacturing sector. The Manufacturing Advisory Service provides dedicated support to accelerate growth within manufacturing firms. D2N2 will work with the providers of the Manufacturing Advisory Service to ensure that national funding earmarked for the D2N2 area is targeted effectively on the needs of local businesses and localised delivery is effectively embedded with the D2N2 Growth Hub. 12

13 Targets will be developed to demonstrate D2N2 wide activity and strong links made and referrals shared with the Growth Hub adviser team. MAS contracts to include the requirement to link/feed into D2N2 Growth Hub to collaborate with other Business Advisers and be part of the integrated "bespoke business diagnostic". When and how procured Through Manufacturing Advisory Service opt in however, there is continuing uncertainty from national government about the eligibility of the MAS opt in and other ERDF opt-ins. Level of opt-in will be subject to consideration of a clarified offer from Government remaining appropriate and providing for suitable local direction of delivery. 3.3: Trade and Export Programme (UKTI Opt-in) D2N2 is an export-oriented economy with a strong dependence on international gateways. For example, in 2013, exports from the East Midlands were worth 21.48bn 1. Research suggests that exporting small and medium sized enterprises are more productive, innovative and resilient than non-exporting firms. UKTI provide dedicated services to support companies to begin to export or to increase or diversity their export base. D2N2 will work with the providers of the UKTI to ensure that national funding earmarked for the D2N2 area is targeted effectively on the needs of local businesses and localised delivery is effectively embedded with the D2N2 Growth Hub). When and how procured Targets will be developed to demonstrate D2N2 wide activity and strong links made and referrals shared with the Growth Hub adviser team. UKTI contracts to include the requirement to link/feed into D2N2 Growth Hub to collaborate with other Business Advisers and be part of the integrated "bespoke business diagnostic". Through UKTI opt in in however there is continuing uncertainty from national government about the eligibility of the UKTI opt in and other ERDF opt-ins. Level of opt-in will be subject to consideration of a clarified offer from Government remaining appropriate and providing for suitable local direction of delivery. 3.4: Business Growth Hub (infrastructure) The D2N2 Growth Hub will provide a clear model for coordinating and simplifying business support so that it joins up national, local, public and private support and creates a seamless customer experience for businesses, which makes it easy for them to get the right support at the right time ESIF funding, alongside Growth Deal resources will support operational & systems infrastructure for the Growth Hub. When and how procured There are opportunities to work with Sheffield City Region and the Nottingham City Growth Hub to ensure data systems are integrated. Through dedicated call. One contract award. For the Sheffield City Region overlap area there will be a co-ordinated process to ensure the ICT systems can link to have a seamless customer experience and an alignment with the Nottingham Growth Hub to share resources where this brings wider benefits and offers best value for money. 3.5: Business Growth Hub (Advice and services) The D2N2 Growth Hub will provide a clear model for coordinating and

14 simplifying business support so that it joins up national, local, public and private support and creates a seamless customer experience for businesses, which makes it easy for them to get the right support at the right time ESIF funding, alongside Growth Deal resources will support business advisers and enhance local delivery through locality and specialist advisers, making use of the network of Innovation Centres for delivery and one to one support as appropriate. The overriding principle for the Growth Hub is to simplify the offer to D2N2 businesses and target those businesses with ambition to grow.. contracted via ERDF will bring Business Advisers together, be they specialist or general and locally focussed to support businesses and provide a bespoke diagnostic tool. When and how procured Through dedicated call. Multiple contract awards. (Links to section 3.9) There is scope for agencies, organisations or businesses to bid to deliver all or just an element of the required activity. Collaboration with other relevant organisations will be encouraged to ensure strong links are made to best serve the businesses in the D2N2 area that have ambitions for growth and in pursuance of the D2N2 objectives. Elements within the Growth Hub provision could include Pre/new start support Information Officers handling front line calls via the Contact Centre Better Business Regulation General Business Advisers to provide the first business advice contact referred from the online self diagnosis or Information Officer through the Contact Centre to carry out a flexible and responsive bespoke diagnostic, or health check and series of actions to support businesses to grow. Fund Finder Team (specific intervention to assist on the technicalities of completing the complex form filling) as part of the bespoke business diagnostic Peer to Peer mentoring could be via a web based brokering system One to many relevant themed events to encourage collaboration and CPD Recruitment Fairs to enable SME s to compete and make as strong an offer to school leavers and University graduates as the OEMs assisting them to better sell their businesses and jobs For the Sheffield City Region overlap area and Nottingham Growth Hub, there will be a coordinated process to ensure the ICT systems and provision of general advisers and support services are aligned to have a seamless customer experience. When and how procured 3.6: Incubation and Grow on Space and associated sustainable transport measures (+Growth Deal II and Rural Growth Network) Review need and availability of provision to align with Growth Hub provision and Sector needs. Premises for SMEs including managed workspaces and business incubators where demand is shown to exceed supply, with associated enabling infrastructure. Through flexible Business Support and Innovation call. Q1 3.7: Leadership & Management Programme (non ESF & to complement Skills) Direct action from Innovation Plan following wide consultation. Sector plans recognise the need for this through bespoke mentoring or group learning 14

15 When and how procured sessions. Through flexible Business Support and Innovation call. Q1 ESIF Spend When and how procured 3:8: Access to Risk Finance for SMEs (provisional): including: early growth finance, innovation, debt Subject to consideration of collaborative research and options appraisal. To include element of investment readiness provision. 11,750,000 (provisional) TBC To be considered by the D2N2 ESIF Programme Board following European Investment Bank ex-ante market assessment and East and South East Midlands LEPs options appraisal review. When and how procured 3.9: Rural Business Advisers Specific support to businesses operating in a rural area is required to assist their access to both targeted support and to ensure access to the mainstream support through the EU Programme. EAFRD funding - to support 2 FTE Advisers with generalist experience but knowledge of working with rural businesses. Link to LEADER business support and provision. Through flexible Business Support and Innovation call. Q1 When and how procured 3.10: Rural business grant programme To align with LEADER programmes and support those growth businesses not with in LEADER areas that contribute to the D2N2 Strategy. Through flexible Business Support and Innovation open call. Q1 Through EAFRD funding and subject to agreed level of grant support with DEFRA. Likely to be larger more strategic projects and development suitable within rural areas. 3.11: SUDS contribution The Nottingham Sustainable Urban Development Strategy provides for 4m under this Key. See section 8 for fuller details. When and how procured Through SUDS Call Key : 6. Key Sector Support targeted at the eight priority sectors and including business growth strategies, design and development of a targeted entrepreneurship programme, network and collaborative business activities. Thematic Objective: 3: ENHANCING THE COMPETITIVENESS OF SMES Activities under this key activity will be derived from the sector plans being developed for each of D2N2 s priority sectors. When and how procured 3.12: Collaborative Enterprise programme To stimulate cross sector working, operational costs, events, business support, managing business regulation activity, bespoke marketing for businesses and for those Sectors identifying poor "profile" and difficultly in recruiting, coordinated promotional Campaigns). Organisations wishing to develop programmes of support for some or all of the following sectors would be welcome and collaboration and back office cost sharing would be welcomed to make any cost savings and also stimulate collaborative working. Through flexible Business Support and Innovation call. Q1 3.13: Visitor Economy Business support/product Development Programme 15

16 When and how procured Evidence from Colliers Report & DMO Strategies. Through flexible Business Support and Innovation call. Q1 When and how procured 3.14: Creative Industries Support Programme (wrap around SUDS) More detail to follow when Sector Plan is produced. Through flexible Business Support and Innovation call. Q1 When and how procured When and how procured 3.15: Logistics programme (inc Supply chain collaboration) More detail to follow when Sector Plan is produced. Through flexible Business Support and Innovation call. Q1 3.16: Transport Equipment Manufacturing Programme (inc Supply chain collaboration This is a significant sector with particular focus on developing the supply chains for Planes, trains and automobiles and look to deliver the range of recommendations and actions arising from the Sector Action Plan. A private sector led delivery mechanism would be welcomed that demonstrates awareness of the local provision and support in the D2N2 area and in order to stimulate innovation, firm links with universities and training provision as part of the delivery model shall be essential. Equipment-Manufacturing Through flexible Business Support and Innovation call. Q1 When and how procured 3.17: Food and Drink programme (inc interventions between producers and distributors) To deliver key recommendations for the Food & Drink Manufacturing Sector. Links with EAFRD funding in rural areas. To provide specialist expertise of the sector to drive forward the Sector Action Plan to identify and assist sector businesses and aide their growth. Assist business with developing their Growth Plan and identifying relevant specialists from the suite of D2N2 business support offers. To broker introductions to Universities where businesses are looking for innovation in products or services. To work with the Sector to develop activities of significant size to make a step change in business improvements, this could be around Low Carbon technologies or work with the Logistics Sector to develop a distribution centre. Through flexible Business Support and Innovation call. Q1 When and how procured 3.18: Life Sciences Programme To deliver key recommendations for the Life Sciences sector and work across East Midland LEPs Through flexible Business Support and Innovation call. Q1 3.19: Construction Programme (inc supply chain and procurement support) To Deliver key recommendations for the Construction Sector, in particular a Construction Ambassador and supply chain & streamlined procurement activity 16

17 When and how procured When and how procured to address the Government s Industrial Strategy, by 2025 to: 33% reduction in initial construction costs and whole like cost of assets 50% reduction in overall time from inception to completion for new build and refurbished assets 50% reduction in greenhouse gas emission in the built environment 50% reduction in the trade gap between total exports and total imports for construction products and materials Through flexible Business Support and Innovation call. Q1 3.20: SUDS contribution The Nottingham Sustainable Urban Development Strategy provides for 1.2m under this Key. See section 8 for fuller details. Through SUDS Call Key : 7. Support Low Carbon Markets and Technologies Thematic Objective: 4: SUPPORTING THE SHIFT TOWARDS A LOW CARBON ECONOMY IN ALL SECTORS D2N2 s consultation draft Low Carbon plan sets outs our plans to use our competitive advantage to build on expertise in the low carbon transport technologies and dual fuels sector, including Toyota and Rolls Royce, and data from DECC suggests employment in the low carbon economy here is amongst the highest of all LEP areas. The D2N2 area importantly also has significant research expertise in this area. D2N2 is also a significant contributor to power generation in the UK, with the potential to exploit the move to more renewable sources of energy. Climate change and the low carbon economy is also likely to present commercial opportunities for the entire D2N2 business base either through the development and provision of low carbon goods and services, including low carbon housing and retrofit or through savings in areas such as energy or waste reduction, providing a market for local low carbon economy businesses. The focus of D2N2 s activities under thematic objective 4, low carbon, has been shaped by our draft low carbon sector action plan When and how procured When and how procured When and how procured 4.1: Low Carbon Sector Support Growth Programme (see low carbon strategy To deliver key recommendations for the Low Carbon Sector specifically developing the foundations for a strong sector in D2N2 Through flexible Business Support and Innovation call. Q1 4.2: Low Carbon Transport Technology To link Low Carbon, Transport Equipment Manufacturing & Logistics. Through flexible Business Support and Innovation call. Q1 4.3: Low Carbon support for Supply Chain & Procurement for new markets To include public sector procurement links such as NHS. Through flexible Business Support and Innovation call. Q1 4.4: SUDS Contribution The Nottingham Sustainable Urban Development Strategy provides for 4m under this Key. See section 8 for fuller details. When and how procured Through SUDS Call Key : 8. Energy Efficiency for SMEs including industrial processes, designing out waste, recovery of waste heat energy and CHP; helping SMEs to move to 17

18 renewable and low carbon fuels; building retrofit and energy efficiency; adoption of domestic energy efficiency and low carbon construction techniques Thematic Objective: 4: Supporting the Shift towards a Low Carbon Economy in All Sectors When and how procured 4.5: Business/Social Enterprise low carbon retrofit programme following an Environmental Audit that will identify the low carbon recommendations for action. Funding assistance for businesses to develop retrofit activity. May be linked to an Environmental Audit at premises, or could help develop stronger businesses in D2N2 to deliver quality schemes Through flexible Business Support and Innovation call. Q1 When and how procured 4.6: Low Carbon Construction techniques (inc BIM development & stimulate uptake thereof. Arising from the Construction Sector Plan Through flexible Business Support and Innovation call. Q1 When and how procured When and how procured 4.7: Sustainable Communities To deliver key recommendations for the Low Carbon Sector specifically developing the strength within Sustainable (SMART) Communities Through flexible Business Support and Innovation call. Q1 4.8: SUDS Contribution The Nottingham Sustainable Urban Development Strategy provides for 1.2m under this Key. See section 8 for fuller details. Through SUDS Call Key : 11. Innovative Technologies including support to improve business understanding and use of resource efficiency measures, improvements in resource use planning and knowledge transfer both in relation to technical expertise and practical applications in business and communities. Thematic Objective: 6: PRESERVING AND PROTECTING THE ENVIRONMENT AND PROMOTING RESOURCE EFFICIENCY When and how procured When and how procured 6.1: Business low carbon / energy efficiency advice and Audit Universal offer as part of the business diagnostics element of Growth Hub. Very strong requirements from all Growth Sectors. Initially to save money and reduce business operating costs, and could move to a Green accreditation, setting a high ambition for a Low Carbon/ sustainability standard for D2N2. Through flexible Business Support and Innovation open call. Q1 or Growth Hub specific call 6.2: 2 x Sector collaboration on knowledge transfer of technical expertise & practical applications in business & Communities To be Programmed to encourage at least two Growth Sectors to work together to share and learn best practise and transfer low carbon knowledge to benefit both. An example arising from the Construction Sector Plan is the recommendation to develop and deliver a package of support for SMEs around green construction to include BIM, Building Information Modelling to support the reduction of waste and improve efficiencies. Through flexible Business Support and Innovation call. Q1 18

19 5. Infrastructure for Economic Growth Theme Strategic Approach To achieve the ambitions of the D2N2 strategic economic plan we need to put in place the infrastructure and conditions that will support business and employment growth, including economic infrastructure that meets the needs of the 21st century economy. As a location that has a range of export-led sectors including aviation, automotive manufacturing, and bioscience, with a global customer base, D2N2 s economic and transport infrastructure is fundamental to its economic performance. Access to global markets via ports and airports, supported by effective strategic road and rail connections, is critical in meeting the area s growth requirements Excellent local connectivity, a range of employment locations to suit our diverse business base, digital infrastructure that reaches all parts of our geography, and a housing offer that reinforces the vibrancy of our cities, towns and villages and attracts and retains the high quality workforce that our businesses need will support and sustain growth. D2N2 is part of a more developed region and the European Commission does not consider that the area has an overall infrastructure deficit. Therefore ERDF spend can t be directed towards general infrastructure but instead be directed towards activities with direct economic outcomes. Flood risk is a significant challenge to the D2N2 economy, potentially leading to economic blight of key economic sites. According to the Office of Science and Technology s Foresight Flood and Coastal Defence flood incidents are set to at least double and be more severe in coming years. D2N2 ESIF funding for flood risk management will be targeted at the specific challenges of highest priority and potential, where there is demonstrable market failure. D2N2 s natural environment plays a key role in the economy and attracts business, visitors and people to live and work in the area, and provides a number of economic opportunities such as the growth of the visitor economy, and the potential of the green economy. Developments that detract from the environment have the potential to cause both environmental and economic harm. Investment in both green and blue infrastructure, conversely, can help to attract investment into areas, by creating a more attractive and sustainable environment for growth. Developing and protecting ecosystems services to sustain economic growth, particularly focused on sites that deliver growth, is the focus of spend under the priority axis 6. Approach to Implementation D2N2 will invite applications via rolling open calls for activities to deliver our Infrastructure for Economic Growth theme with separate calls for each key activity although the LEP will consider rolling all the economic infrastructure activities into a single call. As applications will require match and are likely to be place-specific, D2N2 will not be prescriptive about delivery geography and, wherever possible, flexible about delivery methodology. Activities Key : 9: Flood Risk Management including measures that support the protection of existing major employment areas; measures focused on strategically important sites/areas central to realising growth aspirations; and involving communities in the planning and management of flood risk. Thematic Objective: 5: PROMOTING CLIMATE CHANGE ADAPTATION, RISK PREVENTION AND MANAGEMENT 5.1: Flood mitigation measures that support the protection of existing 19

20 major employment areas The risk to businesses, and therefore to economic development, posed by flooding is a significant climate change challenge for the UK. Flood damages in England have risen by around 60% over the past 25 years and already exceed 1bn per annum in direct costs. Small and micro-businesses are less able to cope with the costs of flooding than larger firms. In addition to the costs that flooding imposes on existing businesses and communities, the risk of flooding constrains economic growth in parts of the D2N2 area. Land which would otherwise provide a significant resource to support economic development such as that in the centre of Derby cannot be developed through the market alone, as the costs of mitigating the flood risk make such schemes financially unviable for private sector developers. When and how procured Through flood risk management open call. Q : Flood mitigation measures focused on strategically important sites/areas identified as central to realising growth aspirations The risk to businesses, and therefore to economic development, posed by flooding is a significant climate change challenge for the UK. Flood damages in England have risen by around 60% over the past 25 years and already exceed 1bn per annum in direct costs. Small and micro-businesses are less able to cope with the costs of flooding than larger firms. In addition to the costs that flooding imposes on existing businesses and communities, the risk of flooding constrains economic growth in parts of the D2N2 area. Land which would otherwise provide a significant resource to support economic development such as that in the centre of Derby cannot be developed through the market alone, as the costs of mitigating the flood risk make such schemes financially unviable for private sector developers. When and how procured Through flood risk management open call. Q Key : 10. Investments in Green and Blue Infrastructure where they can be shown to support wider economic development objectives, for example linked to the delivery of priority development sites. Thematic Objective: 6: PRESERVING AND PROTECTING THE ENVIRONMENT AND PROMOTING RESOURCE EFFICIENC 6.3: Green and Blue Infrastructure Fund D2N2 s natural environment plays a key role in the economy and attracts business, visitors and people to live and work in the area, and provides a number of economic opportunities such as the growth of the visitor economy, and the potential of the green economy. Any developments that detract from the environment have the potential to cause both environmental and economic harm. Investment in both green and blue infrastructure, conversely, can help to attract investment into areas, by creating a more attractive and sustainable environment for growth When and how procured Through Green and Blue Infrastructure call. Q Key : 12. Unlocking Economic Potential through promoting sustainable, low carbon access to employment opportunities Thematic Objective: 4: SUPPORTING THE SHIFT TOWARDS A LOW CARBON ECONOMY IN ALL SECTORS 4.9: Low Carbon Mobility Promoting low-carbon sustainable mobility strategies for all types of territories to enhance sustainable access to priority employment and development sites, sustainable multimodal urban mobility and mitigation-relevant adaptation measures When and how procured Low Carbon Mobility Call. Q

21 6. Employment, Skills and Social Inclusion Theme Strategic Approach To achieve the ambitions of the D2N2 strategic economic plan we need to put in place the infrastructure and conditions that will support business and employment growth, including a fitfor-purpose skills and training system which ensures our young people are properly prepared for work, enables employers to access the skilled workers they need and supports people, including our most disadvantaged individuals, to develop their skills and employability to gain, retain and enhance employment and earnings. Employment and skills is a cornerstone of D2N2 s Strategic Economic Plan and the LEP is committed to increasing the number of jobs within the economy and ensuring that our businesses can access the skilled workers they need, both now and in the future. Ambitious coordinated action at strategic, local and individual levels is needed to ensure that everyone, irrespective of where they live or their background, is socially included and those experiencing poverty can access support to exit it. Paid employment and the pathways to it are recognised to be the primary route to achieving this. There is a need to tackle unemployment, reduce the number of residents who are economically inactive and open up routes to employment for those not currently in work. Too many individuals and families in D2N2 continue to face disadvantage. Action is needed to ensure that every individual and family that is socially included and can access support to help them out of poverty. The need for lifelong learning is more evident now than ever before. People no longer have jobs for life with many people changing career as well as employers during their working life. The delivery approach set out in this document has been driven not only by the D2N2 Strategic Economic Plan, but by our key strategic documents, including our Skills for Growth Strategy, Apprenticeship Growth Plan and (draft) Social Inclusion Framework. All can be downloaded from: The D2N2 Skills for Growth Strategy identifies six key priorities; 1. Develop sector growth agreements to make explicit ownership and shared responsibilities for investment, ICT, labour market intelligence and impact measures. 2. Improve business leadership, management skills and training needs analysis to help increase productivity and performance. 3. Promote and develop apprenticeships and traineeships to achieve higher level skills and improve social mobility. 4. Foster enterprise and the characteristics of entrepreneurial behaviour, career adaptability and resilience. 5. Raise the visibility of and access to career insights and specialist careers support for young people and adults to raise aspirations, participation, retention and achievement in learning and work. 6. Promote graduate recruitment and facilitate graduate retention in the region. The outlined approach to skills and employment is designed to avoid duplication, meet the needs of employers, deliver more joined up working, ensure programmes complement existing services and funding and to ensure these are efficiently utilised, match skills to employment destinations, remove barriers to employment and deliver a step change in performance across D2N2 as outlined in the Skills for Growth Strategy and ESIF strategy. To ensure education and training systems reflect employer requirements, To engage new start businesses and SMEs in the education and skills agenda, To equip the workforce with the skills and competencies required by local employers, both at present and in the future, Extend and deepen engagement between business sectors and training providers, Encourage better matching of skills supply with employer need to address recruitment difficulties and unemployment, and 21

22 Develop employer-led, added value, flexible provision. The delivery programme that is presented for consultation is built on engagement with employers in our priority sectors. The key findings from the consolidated sector skills Action Plans include; Relatively low levels of awareness and understanding about what provision is available Provision isn t necessary relevant to sectors / employer needs. Barriers to access - lack of time, perceived/actual cost and not being able/willing to release people for training off-site There is concern about losing returns on investment should a trained employee leave. Need for increased flexibility in the current offer. More opportunities for developing training courses for employers by employers would be welcomed. Negative perceptions and stereotyping about the types of job opportunities. There is a wide range of hard to fill vacancies and skills shortages some sectors. Skills training needs to be employer-led, peer-to-peer, affordable and relevant and accessible. Having access to innovation is critically important to some sectors and to skills development through on-the-job learning and training. Small and micro businesses feel that the grant funding scheme can be too complex and therefore are put off from applying. To address the issues identified by employers in our priority sectors, the consolidated sector skills Action Plans make a number of recommendations, which have informed the development of the proposed delivery programme, including; Create a fund targeting priority sectors, through which employers can source funding to buy training provision for existing staff against its own specification and from the most appropriate provider. (SKILLS Local) Consideration should be given to how D2N2 may be able to complement the existing programmes such as Employer Ownership Pilots and Trailblazers to accelerate the development of new frameworks, particularly at technical level (Develop Sector Growth). To develop an independent skills brokerage function to increase update of skills support and to support employers to understand and navigate their way around the skills system. (SKILLS Local) To implement a common standard of work preparation across all D2N2 schools and to develop an integrated employability offer to schools which includes increased information through careers guidance to young people about key sectors and career pathways. (CAREERS Local) To create a fund which employers can access to provide training to new recruits who have previously been unemployed. (EMPLOY Local) Roll out the Apprenticeship Hub model across the D2N2 area to increase the uptake of apprenticeships and traineeships (including promotion of ATA / GTA models), (EMPLOY Local) but to also consider the potential expansion to incorporate wider skills engagement. (Skills Local) Develop a graduate internship incentive which encourages companies to create graduate internships within their businesses. (Higher Skills Development) 22

23 Approach to Implementation in these themes is supported by the European Social Fund element of the D2N2 European Structural and Investment Funds. A key principle in the use of European Social Fund is that it must add value and not substitute for or duplicate existing mainstream delivery. The proposed delivery programme is designed to work alongside existing delivery structures and provide an integrated programme of support with numerous entry routes for clients. With the majority of ESF funds being matched at source such as through opt-ins with the Skills Funding Agency, the Department for Work and Pensions and Big Lottery, the approach set out is to be specific about the services to be delivered and the skills, employment and social inclusion funding has been designed to form an integrated programme with the aim of supporting people to move closer to, into and upwards within the labour market. Where funding is not directed through the opt in route it will be made available more flexibly through calls which will require a 50% match from the public sector. The programme will ensure sufficient coverage is targeted at hotspot localities across D2N2 which avoids duplication and competition whilst taking account of local and regional as well as national requirements through input from key stakeholders. The diagrams below illustrate how the proposed programme can run alongside and add value to existing provision together with activities, client groups and routes into the proposed activities. EXISTING PROGRAMMES TIME2CHANGE D2 N2 Futures Contract (NEETs) N2 Innovation Fund (End: Mar 2015) Work Choice (Specialist Disability Programme) (Ends: Oct 2015) National Careers Service D2 Nottingham Jobs Fund (18+ City) Integrated Employer Hub (unemployed City) Mandatory Work (End: Mar 2015) Youth Hubs (18-24 County) Job Clubs (local residents County various) Working Communities (Redundancy, unemployed County) Apprenticeship Jobs Fair (16-18) City Mansfield Learning Partnership (young people in school Mansfield) Skills for Employment Foundation Learning (NEETs County) ACLS Family Learning (post 19 County) Apprenticeship Hub (16-24 City) Sector Based Work Academy (End: Mar 2015) DWP Flexible Support Fund Tomorrows Engineers (Y8 City) EMPLOY Local EMPLOY Local National Citizenship Service Apprenticeship Next (Y11,12,13 leavers City) Big Bang (secondary students City) Primary Engineer (KS1/2 City CAREERS Local Just Imaging Working Here Y5/6 City) Afasfafefe Mock Interview (Y11/12 City) Apprenticeships for SMEs (16-19 County) N2 Supported Employment for LLDD /NEET young people employer job coaches (young leaners County) National Apprenticeship Service NAS AGE Grants (for SMEs) SKILLS Local TIME 2 CHANGE Work Programme (Ends: 2016 (with continued support by providers up to 2018) Youth Contract (End: Mar 2015) New Enterprise Allowance Scheme (NEA) (Mentoring: End: Mar 2015 Work Experience (End: Mar 2015) Job Centre Plus Support Contract (Ends: Dec 2014) Talent Match (18-24) Help to Work (End: Apr 2014) Apprenticeship Hub (Employers City) Wheels to Work (newly employed County) +L3 Student Loans Raising Aspirations (16-18 NEET, Y9,10,11 preventative NEET (County) Apprenticeship Funding Adult Skills Budget Ambition SCR Youth contract (18-24 County) D2 Derbyshire Dales Business Advice (SMEs, Dales) Juniper Transport Costs (16-18 Glossop) Juniper Transport Costs (16-18 Glossop) Derby s Working Wage Subsidy (25+ unemployed Derby) Nottingham Peer Support (risk of gang activity City) Area Based Grants (unemployed City) Nottinghamshire Work Clubs (job seekers County) Support in Work (job seekers with long term health barriers N2) i-works (inclusion, learning difficulties / disabilities) (adults County) Youth Contract (18-24 City) EMPLOY Local D2 N2 Navigation and Mentoring Local Response Community Engagement 23

24 ESF PROPOSED PROGRAMMES TIME2CHANGE Existing apprentices Young People (NEETS) Economic inactive Pre-employment training Employees, including those who are underemployed, in jobs without training and needing to improve their skills levels Deliver sector based training for the existing workforce People considering entrepreneurship and social enterprise EMPLOY Local Groups facing particular barriers Marginalised individuals and groups Job seekers Contextualised English and maths Induction and sector training for unemployed Deliver employerled summer school activities Deliver local competitions and events NEETS and potential NEETS Graduates and post-graduates Induction and sector training for unemployed returners Rollout of Apprenticeship Hub Capacity building to link employers with schools (to support NCS) Brokering opportunities Awareness raising Incentive to schools to support delivery of careers insight across all year groups. Deliver the Employability framework through localised menu of activities EMPLOY Local EMPLOY Local CAREERS Local Raise awareness and increase participation of the National Citizenship Service Deliver innovative approaches to IAG (D2N2 Escalator) People considering entrepreneurship and Groups facing particular barriers: social enterprise -Older people -Women -Lone parents Apprentices -People affected by redundancy -Ethnic minorities Groups facing particular barriers -Ex-offenders -People from households with multi-generational worklessness -People with disabilities and mental health and wellbeing problems -People with caring responsibilities Strategic engagement to establish a preferred provider network for employer led provision Awareness raising SKILLS Local Develop and deliver opportunities for internships TIME2CHANGE Training for mentors Deliver purposeful TNAs Employer engagement by the sector to the sector Facilitate the Task Groups Groups facing particular barriers Monitor employer contributions to the skills agenda Develop the D2N2 Time2Change Programme Support post-employment SMEs with a need to engage more effectively in the skills agenda Local response development and delivery Develop a pathway to employment Deliver D2N2 Time2Change Programme JSA Work Programme returners Develop processes to meet the Apprenticeship Reforms Mentoring support NEETS and potential NEETS Graduates and post-graduates Marginalised individuals and groups Employees at risk of redundancy Income support ESA WRAG JSA (up to 1 year) Navigation and Mentoring Local Response Community Engagement Version 2 Delivery / Procurement Options. Effective delivery depends on a procurement process that is equitable and transparent, and also open to influence from all stakeholders via an on-going dialogue. Co-ordination of employment and skills delivery will be undertaken through an integrated portfolio of projects that respond to clearly identified and evidenced need using research from the Skills for Growth Strategy, SEP and ESIF strategy, which will operate across the D2N2 area, but operate at local levels through strategic input from the D2 ESB, N2 SEB and D2N2 LEP, including by identifying local delivery geographies and at key stages throughout the programme A focused set of delivery principles have been developed to inform the route to market for each of the identified delivery programmes. They are; Delivery should; o be driven by effectively delivering to the target client group and geography o be open, transparent and allow for effective performance management o not duplicate existing provision o extend the benefits of best practice o be undertaken by organisations with demonstrable capacity to deliver in local areas o minimise funding lost in administrative overheads In order to achieve this we need to determine the best route to procure each of the programmes, identifying whether the D2N2 ESIF programme should seek to directly contract all the opted in ESF activities or appoint managing agents or prime contractors for each programme that could then subcontract delivery activities. 24

25 In both approaches, D2N2, with partners including the opt-in providers, would be responsible for the design, strategic performance management and monitoring of programmes. Depending on the delivery model pursued, in both approaches D2N2, with partners including the opt-in providers, can reserve the requirement to sign off the strategic criteria for contracts and sub-contracts and the assessment of tenders against those strategic criteria. D2N2 would wish to ensure a strategic input from Employment and Skills Boards at a local level to ensure delivery is locally sensitive. Some of the pro s and cons are outlined below for each - Direct Delivery / Contracting Pro s - more direct influence and control over delivery, one centralised team overseeing performance of the whole programme ensuring alignment and integration, direct relationship between the ESB s and the LEP to determine local need rather than spread across several programmes. Con s Potentially many more delivery relationships for the LEP to manage needs additional capacity within the LEP and Opt-In providers, to ensure that programmes are effectively managed and integrated. Sub-Contracted Delivery / Contracting Pro s - Fewer, more strategic relationships for LEP to manage. Flexibility over delivery subcontracts over time Con s - Requires strong on-going strategic engagement with ESBs to promote locally sensitive delivery. Requires ESB s and local partners to work with several managing agents to scope projects. Adds in additional objectives of managing agent to be met. It may be that different approaches and particular delivery models are appropriate for different programmes. Four delivery models have been identified that could be employed to deliver individual programmes. Some may be more appropriate to particular programmes and some others. Each model has different implications for the operation of the LEP s role and the management resource required and they are summarised below. Feedback is sought from partners about which of the models, or alternative approaches, are most appropriate for particular programmes. 25

26 Potential Delivery Models for opt in Programmes Sub-contracted Delivery / Contracting Direct Delivery / Contracting Prime Contractor Model Managing Agent Model Multiple Managing Agent Model by Procurement One prime contractor per programme. One managing agent per programme. Two or more managing agents per programme. Fewer, more strategic relationships for LEP to manage. All deliverers and sub-contracts in place at point of contract award. Performance reported to ESBs and requires very strong local engagement and knowledge from the outset to ensure locally sensitive delivery. Can specify local presence and knowledge as key criteria in tender specification together with requirements around engagement and management fee caps. Relatively straightforward and time efficient to contract. Due diligence is based on criteria of prime provider (can limit access of some smaller providers). Fewer, more strategic relationships for LEP to manage. Strong on-going strategic engagement with ESBs to promote locally sensitive delivery. Longer lead in time than Prime Contractor model due to due-diligence being required for all sub-contracts but once this is in place it is a more responsive model. More flexible and responsive than Prime Contractor model, with the ability to retain sign off of sub-contracting strategic criteria and strategic assessments and continuing strategic engagement, particularly with ESBs, over the life of the programme. This provides for flexible sub-contracting in response to performance and change in local circumstances and potential delivery through smaller, local providers that may not have the capacity for a full ESF application, Benefits as per the single Managing Agent approach but with the additional potential benefit of more locally or thematically focused managing agents within a single programme. However, this approach would require the delineation of relationships at the outset between multiple managing agents to ensure operational efficiency and impact. Potential risks include; - Sharing of best practice within the programme may be more difficult. - Greater potential administrative burden for providers and smaller contracts may not be as attractive. - Multiple smaller delivery geographies may give a greater risk of under-spend with less flexibility to redeploy it. No managing agent or prime contractor but activity is procured on an activity by activity and by geography basis. Gives greatest degree of control and flexibility over contracting to D2N2, working with Opt-in providers, ESBs and partners. Requires strong central capacity to manage and monitor multiple contracts, secure local strategic engagements, co-ordinate the overall delivery programme and manage delivery provider performance. By fully contracting rather than subcontracting every activity, this is a potentially more time-consuming process to get from need identification to contracting. Potential saving on Managing Agent costs but potential costs from undertaking functions in house. Sub-contracts pay a management fee. Provision can appear closed. Awareness doesn t; always get the reach because marketing is based on prime and sub-contractor target audiences. 26

27 Strategic Overview Showing Programmes Linked to Skills for Growth Key Priorities Strategic Overview for the Skills for Growth Key Priorities Develop sector growth agreements to make explicit ownership and shared responsibilities for investment, ICT, labour market intelligence and impact measures. Improve business leadership, management skills and training needs analysis to help increase productivity and performance. Promote and develop apprenticeships and traineeships to achieve higher level skills and improve social mobility. Foster enterprise and the characteristics of entrepreneurial behaviour, career adaptability and resilience. Raise the visibility of and access to career insights and specialist careers support for young people and adults to raise aspirations, participation, retention and achievement in learning and work. Promote graduate recruitment and facilitate graduate retention in the region. EMPLOY Local SFA Opt-in 6,000,000 Time2Change DWP Opt-in 6,000,000 To be programmed Youth Engagement Initiative for Nottingham D2N2 Youth Engagement DWP Opt-in 1,570,541 Open Call 3,200,000 DWP Opt-in 3,200,000 SKILLS Local SFA Opt-in 7,000,000 Generating Outcomes Higher Skills Development Develop Sector Growth SFA Opt-in 1,000,000 Open Call 4,500,000 Open Call 1,111,498 CAREERS Local SFA Opt-in 2,000,000 Enterprise, Innovation and Pathways Open Call 1,731,337 Average Funding 2,444, ,444, ,977, ,977, ,699, ,699, Average Match 1,027, ,027, ,260, ,260, ,982, ,982, ,785, Total 3,472, ,472, ,238, ,238, ,682, ,682, % 7% 7% 22% 22% 21% 21% 27

28 Activities Key : 13: Increasing Employer Uptake Key : 14: Reducing Unemployment Thematic Objective: 8: Promoting Employment and Supporting Labour Mobility To increase employer uptake of skills provision, and apprenticeships; to increase employment for the unemployed through purposeful training; to increase positive destinations from apprenticeships; to ensure the skills landscape is employer / sector-led; employer engagement to target SMEs not currently engaged; incentive payments to encourage advanced and higher level apprenticeships, traineeship destinations and travel bursaries. Strategi c rational e 8.1: EMPLOY Local The rationale for intervention to promote employment and support labour mobility in D2N2 is multi-faceted; some of the key factors driving the need for intervention include tackling unemployment, reducing economic inactivity and opening up routes to employment; some SMEs are not engaged with skills support within D2N2 only 1 in 4 offer work experience; low levels of apprenticeships alongside recruitment difficulties; ensuring training is employer-led. NEETs make up 99% of the market-share of overall employer numbers in the D2N2 area 2. Skills deficiencies threaten emerging recovery 3 Activities within the EMPLOY Local programme will support people not in work to take up opportunities leading to employment and economic activity. There will be the requirement to interact with the D2N2 Sector Consultative Task Groups and the D2 and N2 Skills and Employment Board to ensure localised intelligence creates purposeful and interrelated strategic activities in line with the needs of the local economy and the D2N2 Skills for Growth Strategy: Raise awareness, link with existing engagement mechanisms and pay employer incentives to support the roll-out of an apprenticeship hub model across D2N2 and to increase employment opportunities for the unemployed and those moving from traineeships to apprenticeship and work across D2N2. Raise awareness of activities linking with Meeting the Needs of Key Sectors specification engagement framework and with existing services such as NAS, Apprenticeship Hubs, Employer Hubs, JCP and the National Careers Service so that an holistic service is on offer (eg to hide the wiring from the employer ). Pay for purposeful pre-employment training which contains the minimum standards set out by the Sector Consultative Task Group (SCTG) by each key priority sector (including ICT). The requirement is that an employer outcome identified at the commencement of the training will support the delivery of the D2N2 LEP key priority of achieving 55,000 additional jobs before Training will be delivered through the sector preferred training network as outlined by the SCTG. Funding will be an outcome based model. The expectation is that learners from this programme will progress to the Employer Training Bundle and will receive the funding as outlined below. Other local sectors as identified by the D2 and N2 SEB will be able to also access this funding, as well as any emerging sectors as identified by the D2N2 LEP. Where a D2N2 SME recruits an unemployed individual with a D2N2 postcode an Employer Training Bundle will be paid to cover the cost of the employee induction to the sector training as ratified by the Sector Consultative Task Groups (SSCTGs) which will be delivered through the sector preferred training network. Funding will be an outcome based model. Training bundles paid at two rates, a lower rate for an unemployed returner to the sector, and a higher rate for an unemployed individual with no previous experience of the sector. Additional payments to reward sustained employment for at least 6 months and for progression to an apprenticeship (within the required timeframe to count as a progression). We may want to provide additional incentives to employers to recruit from priority groups and or priority sectors. Traineeships will not be eligible for the Employer Training Bundle. Other local sectors as identified by the D2 and N2 SEB will be able to also access this funding, as well as any emerging sectors as identified by the D2N2 LEP. 2 Skills for Growth Strategy UK Commission s Employer Skills Survey (UKCES)

29 When and how procure d Delivery of contextualised English and maths for priority groups and or priority sectors. To work with existing employer engagement services to support the roll-out of the Apprenticeship Hub model across D2N2. Award incentives to employers for Apprenticeship starts in addition to any national incentive, likely to prioritise the take up of advanced and higher level apprenticeship in key priority sectors. To grow apprenticeship take-up there will be a requirement to develop processes for SMEs to engage with Apprenticeships in light of the Apprenticeship Reforms. To work with existing employer engagement services to develop opportunities for Traineeships. Award incentives to an employer for supporting a Traineeship opportunity and further reward employers where those Traineeships turn into employment opportunities or an apprenticeship. To support travel bursaries of apprentices and traineeship learners to enable them to access programmes and to stay on programme (this is likely to be more focussed at rural communities and rural micro and SMEs employer). Through SFA Opt-In. Q Key activities identified by employers include; 1. Awareness raising. 2. Incentives to support the rollout of the apprenticeship hub model to increase employment, traineeship and apprenticeship opportunities. 3. Delivery of purposeful sector led pre-employment training, including ICT. 4. Incentives and delivery of induction and sector training for the unemployed returner. 5. Incentives and delivery of induction and sector training for the unemployed. 6. Incentives to support the unemployed from targeted groups. 7. Delivery of contextualised English and maths for priority groups and or priority sectors. 8. Support travel bursaries for apprentices and traineeship learners to access and stay on programme. Eligible Activities by Strategic Area: Brokering opportunities between young people and local employers to encourage work placements, apprenticeships, traineeships, graduate placements and direct employment in growth and high employment sectors; (1) Helping older workers to re-train, re-enter or stay engaged in the labour market. (2) Reducing the number of young people not in employment, education or training, and those at risk of disengaging (including through engagement and preparation activities, access to apprenticeships, and personal coaching); (4,5) Additional support and provision for people, including young people to gain English and maths qualifications (in support of the raising of the participation age); (6) Providing support to embed programmes for people, including young people not in employment, education or training, such as traineeships and apprenticeships; (2) Additional and innovative approaches to pre-employment training which encourages a methodology of employ then train which is employer and sector led; Support to encourage and influence destination driven outcomes; (4,5) Enhancing the take up of Apprenticeships for people, including young people, particularly those linked to priority growth sectors, including advanced manufacturing and bioscience. Activities might include enhancements to core delivery such as support for different delivery models; the addition of professional qualifications which aren't supported locally and/or travel for apprentices. (1) Activities that focus on subjects in most demand by employers to alert young people to employment opportunities and skill needs and go on to equip people with these skills. For example in STEM subjects and/or to meet replacement demand as well as expansion demand; (1,2) Activities that focus on increasing the employability and work readiness of young people. (3) Promoting self-employment as a route out of worklessness and supporting people to take the steps forward to achieve this. (5) Training workless people who need to upgrade their skills or learn new skills (including basic skills and English for speakers of other languages (to compete in the local labour market and adapt to changes in the economy; (3,4,5,7) 29

30 Target Beneficiaries (from EUSIF strategy): Job seekers; Existing apprentices progressing to advanced and higher apprenticeships; Economically inactive (i.e. not actively seeking to engage in economic activities); Young people who are not in employment, education or training; Groups facing particular barriers to accessing work, including: - People from households with multi-generational worklessness - Older people - People affected by redundancy - People with disabilities and metal health and wellbeing problems - Women - Ethnic minorities - People with caring responsibilities - Lone parents - Ex-offenders 10% of the funding is ring-fenced to support young people who are not in employment, education or training. 10% of the funding is ring-fenced to support groups facing particular barriers as listed above. Geographic areas Procurement will Cover: The geographic area is across D2N2, with 40% of funding ring-fenced to support individuals in multiple deprivation areas across D2N2. Specific Employer Sectors that the Should Focus: Sectorial growth opportunities necessitate a strong focus initially on key areas such as: Transport Equipment Manufacturing; Medicine and Bioscience; Construction; Food and Drink Manufacturing; Visitor Economy; Low Carbon Goods and Services, Creative Industries; and Transport and Logistics. Other local sectors as identified by the D2 and N2 ESB will be included in the above arrangements, also any emerging sectors as identified by the D2N2 LEP. Target support some of the of 165,530 out of work benefit claimants aged within D2N2 (21,860 Derby, 36,200 Nottingham) 4 work programme returners (5,880 Derby, 11,570 Nottingham) 5 Target support to some of the 88,840 benefit claimants aged on incapacity benefits (11,040 Derby, 16,530 Nottingham) 6 Of the 2946 responses, 64% quoted the cause of having a hard to fill vacancy due to lack of quality was due to the skills they were looking for, with 39% being a lack of work experience, and 24% lack of qualifications 7 ESIF Spend Outputs Totals 1,399,252 1,865,669 2,725,079 6,000,000 Participants Unemployed Inactive Employed Aged Office for National Statistics November 2013 update Inclusion 5 DWP statistics Percentage of referrals to the Work Programme that could achieve a job outcome up to December Office for National Statistics November 2013 update Inclusion 7 UK Commission s Employer Skills Survey (UKCESS)

31 2,231 1, Key : 14: Reducing Unemployment Thematic Objective: 8: Promoting Employment and Supporting Labour Mobility Supporting those furthest away from the labour market into employment; influence tangible destinations and progression towards employment; coaching and mentoring activity; intensive localised support to remove barriers to employment; work preparation skills; activities to remove additional barriers; post-employment support. 8.2: Time2Change The rationale for intervention to promote employment and support labour mobility in D2N2 is multi-faceted; some of the key factors driving the need for intervention include tackling unemployment, reducing economic inactivity and opening up routes to employment; high levels of unemployment and disengagement from the labour market in (parts of) D2N2; over 65,000 working age out of work benefits claimants in D2N2, and nearly 90,000 on incapacity benefits; employers report hard to fill vacancies due to lack of skills, experience and qualifications. Activities in the Time2Change programme will create a wrap-around service to provide a holistic pathway to employment for target groups, and to link existing services, pathways and funding to make it easier for target groups and advisors. To provide a pathway to employment, with funding to support a mentoring / coaching / advocacy / referral point for target groups. Develop a D2N2 Time2Change Programme (with stakeholder input clients and employers). This will be a two week programme to aspire, inspire, generate ideas and set achievable goals --- into employment. There is the expectation that the programme will be innovative and creative and generate the re-motivation and reengagement of clients. The two week programme will include input from NCS who will have carried out the first referral with each client (a Skills Health Check and TNA with the output of an individualised Pathway to Employment). The Time2Change programme will be ratified by the D2 ESB and N2 SEB prior to delivery and endorsed by the D2N2 Skills & Employment Commission (consisting of the sector groups, D2 ESB and N2 SEB, and Local Authority). The Time2Change programme will form a passport into employment and add value to a client s CV. There will be the need to market / communicate this to existing services, groups, networks. Pay for the delivery of the D2N2 Time2Change two week programme, using the most suitable providers, with reach across the D2N2 LEP area, and with differentiated delivery to target groups as required. On completion of the Time2Change programme each client will be assigned a mentor who will provide a mentoring and coaching service, in an advocacy role.. The expectation is for weekly contact to support, track, advise and influence the client to stay on their pathway. The mentoring support will be for the duration of the pathway. There will be additional funding to support postemployment of ESA clients and NEETs for the first 3 to 6-months of their purposeful employment. The length of in work support will be individualised to each client. To provide on-going review and consultation to inform the pathway and to work with providers to influence the provision so that it develops to be fit for purpose for the target groups to gain purposeful employment. Provide an on-going support service which will be a one-stopshop for anybody who has completed the D2N2 Time2Change 31

32 programme for the duration of this project. This will be an extension service to the individual mentoring support. The expectation is that this will be a telephone support service, which tracks progress and changes of the clients. The service will be a wrap-around to existing services by providing a signposting and follow up service (such as to NCS). There is a need to ensure this is quantified so that the funding is commensurate of the number of referrals to the service. There is a need for the service to link with the Social Inclusion framework Big Lottery Opt-in specification. There is a need to work alongside NCS, particularly as on-going referrals will be provided in respect of the client pathway to employment. There is an expectation that the Client Pathway will include independent referrals / signposting to current provision to up-skill / provide new skills to clients including functional skills, IT skills (particularly in light of the roll-out of Universal Credit and Universal Job Match), employer-led Sector Work Based Academies, traineeships and apprenticeships, as well as the ESF SFA opt-in programmes. All referrals are to be made to programmes that are true employer-led and not provider-led. The aim is that the pathway will dispel the circle of pre-employment training without progressions to employment (eg one client with 6 different CVs created by attending 6 different pre-employment courses). The expectation is that the Pathway Advisors will be knowledgeable of LMI pertinent to the local area through the NCS contract requirement to collate and communicate purposeful LMI and to promote and utilise information from the D2N2 LEP Escalator to Employment, Employability Charter and the annual D2N2 State of the Economy Report. Provide access to training for mentors so they are suitably equipped to deliver a quality and effective service, and to provide training for ambassador mentors (those who have experience of worklessness and who are able to provide support to others). When and how procured Through DWP Opt-In. Q Summary of Activities: 1. Provide a pathway to employment 2. Support mentoring, coaching and advocacy 3. Develop a D2N2 Time2Change Programme 4. Deliver D2N2 Time2Change Programme 5. Support post-employment. 6. Provide on-going support service 7. Training for mentors Eligible Activities by Strategic Area: Providing a range of more intensive support (including through multi-agency approaches) than available through mainstream sources which is outcome based to help people to move towards, enter and progress in work; (2,4,5,6) Additional support, innovative approaches and programmes to specific target groups such as young people with no or few qualifications, people with disabilities or health barriers, people with caring responsibilities, lone parents, ethnic minorities, ex-service personnel, ex-offenders and those from households with intergenerational worklessness. (3, delivery of programmes is through Social Inclusion Framework) Additional support for long-term unemployed people, including those who have left the Work Programme; (1,2,4,5,6) Additional resources to enable new approaches to work experience (including volunteering) and training to support people to move towards and enter employment in existing high employment 32

33 sectors; (2) Responding flexibly to community led approaches for skills and employment development where they can help to increase levels of engagement, and employment(for example overcoming the challenges brought about by the limited range of employment in some rural areas., or to individuals facing specific issues (such as low incomes and low skills)) (Social Inclusion Framework) Additional and innovative approaches to support and motivate young people with no or few qualifications into training and the workplace such as additional support that harder to reach young people will require to successfully complete a traineeship or apprenticeship. (2,4,5,6) Target Beneficiaries (from EUSIF strategy): Income Support ESA WRAG (JCP classification of orange clients) JSA up to one year ESA to JSA JSA Work Programme Returners NEETS and potential NEETS Groups facing particular barriers to accessing work, including: o People from households with multi-generational worklessness o People with disabilities and mental health and wellbeing problems o People with caring responsibilities o Older people o Women o Lone parents o People affected by redundancy o Young unemployed people o Ethnic minorities Geographic areas Procurement will Cover: o Ex-offenders We want to ensure funding is spread fairly and equitably and that the funding goes to the most in need, rather that the easy to reach, therefore this programme will be across the D2N2 LEP area however we would look to ring-fence approximately 60% of the funding for the more disadvantaged target groups and communities with social deprivation. Using the Benefit Claimants Working Age Client Groups Report from NOMIS (29 August 2014) the resident population is 191,540 (using February 2014 figures). We will look to ring-fence 60% of the funding to support targeted groups at Ward level where the rate of total claimants is 3% and more. We are keen for the evidence of data to drive the targeting of support. We are looking for transport/travel and outreach issues to be supported by this programme. ESIF Spend Totals 2,000,000 2,000,000 2,000,000 6,000,000 Outputs Aged Participants Unemployed Inactive Employed ,230 1, Key : 14: Reducing Unemployment 33

34 Thematic Objective: 8: Promoting Employment and Supporting Labour Mobility 8.3: Unnamed ESF activity to be reviewed in December 2015 and appropriate activity will be commissioned, either additional wrap-around, delivery of programmes of extension of existing ESF programmes. When and how procured ESF-Open Call: Q ESIF Spend Outputs Key : Key : Totals 1,570,541 1,570,541 Aged 15- Participants Unemployed Inactive Employed : Reducing Unemployment 17: Meeting the Needs of Key Sectors and Higher Level Skills Development Thematic Objective: 8: Promoting Employment and Supporting Labour Mobility Thematic Objective: 10: Investing in Education, Skills and Lifelong Learning 8.4: Youth Employment Initiative for Nottingham ESF-Open Call When and how procured The primary objective of the activity is to provide funding to support the Youth Engagement Initiative (available to NUTS3 areas Nottingham). Participants must be aged 15 to 24 inclusive when they start on YEI provision. They must be residing in an area eligible for the YEI. They must be unemployed or inactive. Usually they will be NEET (i.e. not in education or training as well). However, in certain cases young people in education or training may participate, if they are not on full time education or training courses and are at risk of becoming NEET (for example they have no qualifications, or are from disadvantaged groups or marginalised communities). Full time students are excluded from YEI support. Activities supported by the YEI will need to fall within the scope of the ESF investment priority on the sustainable integration of young people. The draft investment priority is attached at annex A. If partners believe that the YEI should fund activities that have been proposed in LEP area strategies, but do not appear to be covered by the scope of the investment priority, they should indicate what these are in their responses to the consultation on the ESF Operational Programme. Open-call through CLG. Q D2N2 will work with the Skills Funding Agency, DCLG and DWP and any other partners as appropriate to seek to identify ways to maximise ESF match funding to enable full draw down of the potential YEI match funding. Currently programmed match is as below. ESIF Spend Totals 1,030,924 2,169,076 3,200,000 Outputs Participants Unemployed Inactive Employed 1, Aged Key : 14: Reducing Unemployment Thematic Objective: 8: Promoting Employment and Supporting Labour Mobility 8.5: D2N2 Youth Engagement The primary objective is to support targeted activity for inclusive, who are unemployed, inactive and NEET. 34

35 This funding will provide a more targeted and enhanced wrap around support and service for the Youth Contract to extend benefits of YEI across the D2N2 area. Hotspot areas will be advised by the D2 and N2 SEBs to ensure targeted engagement and delivery is for the hardest to reach, and will require LAs sharing data in respect of NEETs and not known. Through consultation with the ESBs and LAs provision will be tailored to local areas, utilising existing services and providers, and linking with existing funding streams to add value. This project will be the conduit of engagement for this client group to the Time2Change programme. will incorporate additional mentoring and 1 to 1 support, and provide opportunities to create relevant programmes of delivery as engagers and enticers When and how procured Funding will be available to support mentor ambassadors to work on this programme and this client group. DWP Opt-in: Q ESIF Spend Totals 632,000 1,100,000 1,468,000 3,200,000 Outputs Aged Inactive Participants Unemployed Employed , Key : 15: The Targeted Community Support Programme Key : 16: Helping Excluded Groups Back into Training and Work Thematic Objective: 9: Promoting Social Inclusion and Combating Poverty Targeted Community Support Programme adding value to existing mainstream support activities and will include tailored support measures to target specific geographies; developing capacity to address local support needs; local inclusion initiatives including CLLD. Helping Excluded groups back in to Training and Work, adding value to existing mainstream support activities. 9.1: D2N2 Social Inclusion Programme Too many individuals and families in D2N2 continue to face disadvantage. Action is needed to ensure that every individual and family is socially included and can access support to help them out of poverty. Access to employment, including pathways to employment which will vary in duration and the level of support needed depending on the needs of the individual, is recognised to be the primary route to achieving this. The current economic and social climate presents both challenges and opportunities. The economy is growing and growth is projected to continue for the foreseeable future, so we are arguably in a better position to tackle exclusion than 5 years ago. However, there is no guarantee that this will translate into strong employment growth or that the benefits of growth will automatically trickle down. Productivity has yet to pick up so companies have the capacity to expand without the need to create new jobs. There is an added risk that people who lost their jobs or never gained their first job because of the recession get left behind. As businesses modernise and need new skills this risk increases. Those experiencing what might be defined as deep exclusion face many barriers to even beginning to think about and embark on a journey towards employment / economic activity and so are at greater risk of not benefiting from the upturn. Agencies that work with and support the socially excluded are experiencing financial capacity challenges. The aim of this activity is to: Deliver integrated and innovative solutions that tackle the root causes of social exclusion Address barriers to work and provide pathways to employment to allow all 35

36 adults to play an active role in the labour market Lift people out of poverty wherever they live including overcoming persistent pockets of poverty And support active inclusion through the use of local initiatives. This activity will deliver against the priorities identified in the D2N2 Social Inclusion Framework (July 2014). The Framework identifies four key priority excluded groups for support: o Older long-term unemployed people o Women returning to or needing to access employment o Younger People (including NEETs) o People with multiple and complex needs o The financially excluded. The Social Inclusion Framework sets out the following pathway to enable priority groups to move from exclusion to inclusion (including financial inclusion) to employment: To deliver this, the activity will: Provide a personalised navigator service which ensures synergy with the Time2Change programme, the extended Youth Employment Initiative and the roll out of Universal Credit Bespoke and tailored provision for thematic priority groups Local employer engagement Local support and capacity building to ensure programme reach and individual solutions Volunteering co-ordination For most people who go through this pathway the aim is to link them in to T08 and T10 (Time2Change) activity, but for some there is recognition that bespoke support and an alternative route through the T09 pathway into economic activity / employment will need to be in place. When and how procured Through the Big Lottery opt-in across the D2N2 area. Drawing on the Commissioning Principles recommended by the D2N2 Social Inclusion Framework. It is proposed that a Managing Agent model supported by co-ordinated supply chains would be appropriate for this activity. 36

37 40% of funding ring fenced to support individuals in multiple deprivation areas within D2N2. 80% of the funding ring fenced to support the five priority thematic groups leaving 20% to be used more flexibly if required e.g. to address emerging priorities throughout the programme or locality-specific priorities. ESIF Spend TOTAL 1,801,684 2,357,730 2,558,292 6,717,706 Outputs Participants Unemployed Inactive Employed Aged Key : 15: The Targeted Community Support Programme Key : 16: Helping Excluded Groups Back into Training and Work Thematic Objective: 9: Promoting Social Inclusion and Combating Poverty Between 2015 and 2018 there is 489,032 ESIF funding under Thematic Objective 9, Promoting Social Inclusion and Combating Poverty, that remains either unallocated to either the Big Lottery opt-in in or notionally allocated to a local Community / CLLD programme. D2N2 will consider how this funding can most effectively be allocated alongside considering the outcome of consultation on CLLD / community programmes (see section 7). It may be appropriate to incorporate the social inclusion funding into a broader community programme that draws on ESF and ERDF funds, allocate it to an ESF only grant programme or potentially seek to operate a dedicated social inclusion only grant pot. Funding could support the very many small groups that support individuals, understand their needs, work in local communities to actively enable social inclusion and contribute to skills and employability outcomes. Any grant fund could be structured to promote both small grants to enable local community groups and micro-providers to deliver activities that contribute to this agenda and larger grants to bring social innovation and drive system change. When and how procured This funding could be made available either through an open call, opt-in, CLLD model or other bespoke community programme or a mixed model. Recommended Commissioning Principles ESIF Social Inclusion Programmes It is proposed that the following principles are followed in the development and commissioning of ESIF Social Inclusion programmes. 1. Personalised interventions personalised interventions are more likely to achieve outcomes with excluded individuals and beneficiaries themselves respond better to personalised approaches. Tackling exclusion is a complex challenge and relational approaches doing things with people rather than for or to people are more likely to succeed Support should remain in place throughout the beneficiary journey along a pathway towards employment and this support should be delivered ideally by the same person or combination of persons as they move along the journey. 3. Programmes should be based on the three A s of Aspiration, Attitude and Aptitude. Work to enable excluded people to broaden their horizons and think about new possibilities 8 Many to Many: How the relational state will transform public services, IPPR, R Muir & I Parker, February

38 as well as develop their confidence and basic skills was seen as essential and as an essential starting point for many. 4. Delivery through Navigators and Mentors is the best approach, particularly with young people, helping to guide and navigate them through available services, overcome obstacles and achieve goals. 5. Strong support was expressed for Business Mentors for example to enable excluded people to access and sustain jobs with key local employers and give businesses the confidence to offer them jobs. 6. Programmes should focus on deliverability through the simplest possible structures and processes. This might include partnerships with a limited number of core partners alongside wider community delivery groups and the use of existing or emerging partnership structures and models. 7. Deliverability will be enhanced by strong local support for both the project prime and the delivery partnership. Successful projects should have the support of local networks and should demonstrate how they will utilise the strength of local supply chains. 8. Thematic objective 9 should focus on those furthest away from the labour market experiencing what we have called deep exclusion. Providers should be encouraged/enabled to avoid the perverse though understandable incentive to focus their work on those who will most readily/quickly enable them to achieve targets. 2 for 1 activities. Opportunities should be taken for activities that achieve twin goals at the same time. For example TO9 activities should not target people who will never work. However, activities could support work with people in this group e.g. by offering structured/supported volunteering opportunities or work placements for excluded people from within our priority groups in social care settings eg residential care homes. 38

39 Key : 17: Meeting the Needs of Key Sectors and Higher Level Skills Development Thematic Objective: 10: Investing in Education, Skills and Lifelong Learning To extend and deepen engagement between business sectors and training providers; encourage better matching of skills supply with employer need to address recruitment difficulties and unemployment; develop employer-led, added value, flexible provision; commission programmes of sector-focussed training for existing employees based on sector skills action plan findings; training package for unemployed new recruits into priority sectors; ensure that appropriate higher level skills interventions are in place to support D2N2's growth ambition; to support the development of new talent, and the up-skilling and re-training of the existing workforce; to ensure graduates are aware of career opportunities in D2N2 growth sectors and have appropriate technical and employability skills; implementing an incentive payment for SME employers to offer paid graduate internships and graduate placements which lead to employment at a graduate level; innovative approaches to intermediate, vocational and higher level vocational provision; sector specific higher level apprenticeship programmes; internship and placement programmes; innovative programmes to encourage graduates and post graduates to start a business. 10.1: SKILLS Local The need for lifelong learning is more evident now than ever before. People no longer have jobs for life with many people changing career as well as individual employers during their working life. Staying informed of employer skills requirements to have the best possible chance of accessing and progressing in employment is therefore a high priority. Demand for skills, particularly higher level skills is expected to rise significantly in the D2N2 area, and there is a need to balance expansion demand and replacement demand, with opportunities arising at all skills levels. Employers need to be supported to identify and articulate their skills needs, so that providers can respond; D2N2 jobs and productivity gap; skills landscape is confusing for employers; skills gaps and shortages exist alongside unemployment; over two-fifths of D2N2 employers don t invest in skills development; highly skilled workforce crucial to future growth, innovation and economic resilience; D2N2 has lower than average proportion with higher level skills; 70% of SMEs do not recruit graduates. 41% of D2N2 businesses don t invest in skills development. 9 32% of year olds in the UK were undertaking some vocational study compared with an average of 50% for the rest of the UK.10 Initial priorities would be to extend and deepen engagement between business sectors and training providers, and the creation of a comprehensive ladder of opportunities for Apprenticeships across all NVQ levels and ensure that young people are work ready.11 In response to the actions taken by employers to overcome difficulties find candidates to fill hard to fill vacancies; of the 2355 responses 42% of employers took the action to increase advertising / recruitment spend, whilst 24% used new recruitment methods or channels.12 The primary objective is to support engagement activity: Emerging Needs and Development Linked to Employers Needs, including Employer Engagement : Employer engagement directly delivered through a sector specific employer framework. Awareness raising which also links to existing engagement activities such as NAS, SFA Apprenticeship Growth Teams, Nottingham Employer Hub, the Apprenticeship Hubs, provider engagement teams, LA regeneration and inward investment teams. 9 Skills for Growth Strategy Skills for Growth Strategy Employment and Skills, The Economic Strategy Research Bureau, Nottingham Business School 12 UK Commission s Employer Survey (UKCESS)

40 There is existing sector bodies for all key priority sectors to the LEP Skills Consultative Task Groups (SCTG). To influence an employer led skills landscape there is a need to continue to facilitate this activity with a joined up approach which will in time link to the D2N2 Growth Hub. The strategic methodology is to create localised Employer Ownership of Skills for the D2N2 priority sectors. Their purpose will be to consult with, inform emerging needs, interpret skills needs of employers, translate funding for employers particularly for SMEs, inform on provider fit for the sector - this will create a supply chain approval process led by the sector. The winning organisation will facilitate the Skills Sector Consultative Task Groups for the LEP key priority sectors listed below, with the continuation of each group being chaired by a private sector employer and the stakeholder grouping meeting the expectation of the D2N2 LEP. Fund holder to pay for capacity building to fund the Skills Consultative Task Groups (SCTG) to create a preferred provider network for their given sector and for on-going consultation to inform emerging and development needs of the sector in relation to up-skilling staff in the workplace and encouraging employment within the sector. LEP key priority sectors: Other local sectors as identified by the D2 and N2 ESB will be included in the above arrangements, also any emerging sectors as identified by the D2N2 LEP. Engagement with D2 and N2 Employment and Skills Boards (ESBs) to agree a preferred provider network at a local level within D2 and N2 for their defined key priority sectors. Fund holder to pay for local response emerging and development needs of the sector where projects are ratified by the SSCTGs and signed off by the D2N2 LEP. Demand Led Training: Carry out purposeful employer led Training Needs Analysis, format of which has been approved by the SCTGs of the LEP. Fund holder to pay for sector-based training for the existing workforce and in-line with sector skills action plans (delivered through the preferred provider network as ratified by the sector bodies and D2 / N2 for non D2N2 key priority areas). Higher Level Skills: To work with employers to develop opportunities for internships for higher skilled individuals and graduates locally. Award incentives to employers for internships and if possible further reward employers where those internships turn into employment opportunities at a higher skills level. It is anticipated 60% funding for all activities is ring-fenced to support the LEP Key Priority Sectors. We would want a performance management mechanism to review this on an on-going basis. We want to be able to set an assumed proportion of capacity building at the start (10%). The LEP also wants the ability through performance management to review the proportion and agree changes to it. Funding should support large employers where they can evidence the development and growth of their supply chain only this is a request of large and small businesses to enable capacity. Where employers link into funding activity under this programme there is an expectation for them to buy into the skills and employment agenda by providing an engagement / employment opportunity eg work experience, link with a D2N2 school and be involved with an event, traineeship, etc. This will 40

41 required facilitation and monitoring to link into the D2N2 Employability Framework and National Careers Service employer engagement strategies and the production of marketing materials and case studies in line with ESF requirements. When and how procured Through SFA Opt In Q Summary of Activities from Employers: 1. Employer engagement by the sector to the sector. 2. Awareness raising. 3. Facilitate the Skills Sector Consultative Task Groups. 4. Creation of preferred provider networks. 5. Local response development and delivery. 6. Delivery of purposeful employer led Training Needs Analysis. 7. Delivery of sector based training for the existing workforce. 8. Develop and delivery opportunities for internships. 9. Develop processes for SMEs to engage with apprenticeships in light of the Apprenticeship Reforms. 10. Monitor employer contribution to the skills agenda (eg curriculum design, opportunities for work-placements, activity in schools, competitions, etc). Eligible Activities by Strategic Area: Investment to address identified skills gaps, including for higher level skills and transferable skills such as leadership and management across all sectors, particularly where they reflect the requirements of growth sectors and sectors forecast to require substantial levels of replacement demand or support the advancement of other elements of the European agenda (e.g. skills required to grow the low carbon economy and support greater resource efficiency); (1,3,4,5,6,8) Support programmes of sector-focussed training for existing employees based on sector skills action plan findings; (1,6,7) Support to develop higher level skills, including through vocational learning routes and active employer engagement in such initiatives; (1,5,6,10) Support to start and grow a business, including increasing awareness of enterprise and social enterprise opportunities and providing support needed to launch and manage an organisation. (1,2) Support for collaborative projects, placements, internships or other activities with SMEs that enable students, graduates (and those unemployed graduates) to gain industry relevant experience and skills. (9) Provide incentives to SMEs to provide project, placement, internship opportunities to enhance the contribution of higher level skills to SME growth which encourage a destination into employment. (9) Skills support for apprenticeships and traineeships including improvements in engagement, recruitment, assessment and viable delivery methods (eg delivery clusters for rural and SMEs); (9) Promotion of the use of higher level apprenticeships (especially across the key priority sectors) by developing a supportive environment for new HLAs; (5) Additional or innovative approaches to training in a vocational context for those with low level skills in Maths, English and ICT where supported by an employer / sector need to support them in progressing in work; (7) Support for intermediate, technical and high level vocational provision for career progression; (7) Skills and training packages in response to redundancies. (7) Responding flexibly to employer and sector led needs for skills development where they can help to increase levels of engagement 41

42 and skills; (1,2,3,4,5,6,7,9,10) Target Beneficiaries (from EUSIF strategy): Marginalised individuals and groups; People considering entrepreneurship and social enterprise; SMEs with a need to engage more effectively in the skills agenda; Graduates and post-graduates; Employees, including those who are underemployed, in jobs without training and needing to improve their skills levels, as well as those at risk of redundancy and needing to re-train. Geographic areas Procurement will Cover: The geographic area is across D2N2. Specific Employer Sectors that the Should Focus: Sectorial growth opportunities necessitate a strong focus initially on key areas such as: Transport Equipment Manufacturing; Medicine and Bioscience; Construction; Food and Drink Manufacturing; Visitor Economy; Low Carbon Goods and Services, Creative Industries; and Transport and Logistics. Other local sectors as identified by the D2 and N2 ESB will be included in the above arrangements, also any emerging sectors as identified by the D2N2 LEP. It is anticipated 60% funding for all activities is ring-fenced to support the LEP Key Priority Sectors. We would want a performance management mechanism to review this on an on-going basis. We want to be able to set an assumed proportion of capacity building at the start (10%). The LEP also wants the ability through performance management to review the proportion and agree changes to it. Funding should support large employers where they can evidence the development and growth of their supply chain only this is a request of large and small businesses to enable capacity. Consideration should be made to link with sector trailblazers (not sure what activity / intervention needs to be taken). Where employers link into funding activity under this programme there is an expectation for them to buy into the skills and employment agenda by providing an engagement / employment opportunity eg work experience, link with a D2N2 school and be involved with an event, traineeship, etc. It will be for the Employer Engagement and Fund Holder to facilitate and monitor this linking into the D2N2 Employability Framework and National Careers Service employer engagement strategies. We would also expect the Employer Engagement and Fund Holder to produce marketing materials and case studies in line with ESF requirements. ESIF Spend Totals 42

43 Outputs 2,333,334 2,333,333 2,333,333 7,000,000 Aged 15- Participants Unemployed Inactive Employed 24 3, ,579 0 Key : 17: Meeting the Needs of Key Sectors and Higher Level Skills Development Thematic Objective: 10: Investing in Education, Skills and Lifelong Learning 10.2: Generating Outcomes D2N2 LEP are interested in further exploring the possibilities for running a procurement round to achieve genuine traction over sector specific preemployment training and support activity, enhancing current funding streams with a view to increasing: 1. Delivery in key priority sectors 2. Increasing the proportion of individuals that are supported into employment through such route-ways. It is anticipated that many of the parties that will be able to bid for funding will already be in receipt of Adult Skills Budget funding, through either direct allocations or subcontracting arrangements, however the procurement will not be limited to such organisations. Any organisation that is already delivering pre-employment skills training, or that could refocus funding they are currently in receipt of to deliver such activity would be in scope to bid for this activity. This would include charitable funds as well as public funds. The intention is to provide significant funding in the first year to pilot an approach where bidding organisations commit to focus a significant amount of funded activity in key sectors, and in return are eligible to access additional skills support funding and claim job outcome incentive payments. D2N2 LEP would look to run a pilot for one year to establish the level of impact achievable, before reviewing whether to expand such an approach. The pilot would include skills training delivery in the 2015/16 Academic Year. (Links need to be made with EMPLOY Local to ensure this specification is added value and does not create any duplication of ESF delivered provision). When and how procured SFA Opt-in Q ESIF Spend Outputs Key : Key : Thematic Objective Totals 1,000,000 1,000,000 Aged 15- Participants Unemployed Inactive Employed : Meeting the Needs of Key Sectors and Higher Level Skills Development: 18: Increase Employability and Enterprise Skills 10: Investing in Education, Skills and Lifelong Learning 10.3: Higher Skills Development There is a distinct need for provision across the D2N2 area to be demand-led, and for employers and sectors to lead on the skills and employment agenda to provide skills solutions to enable job creation. We will look to procure innovative projects which are aligned to the Skills for Growth strategy which will further add value to existing services, activities and funding and complement the D2N2 offer. Potential activities will be to support:

44 Graduate recruitment and development support for SMEs (enable graduate retention and stimulate graduate returners to D2N2 using a joined up approach and engagement strategy with employers) Workshops and mentoring to support students and unemployed graduates Graduate internships and students placements Development programmes to up-skill vocational staff to deliver Higher Apprenticeships (where Higher Apprenticeship programmes exist and the need is evidenced by D2N2 LEP) Develop future higher skills needs influenced by employers Develop technical skills as needed by employers, influenced by employers as part of a career pathway for the sector Develop supply chain and cluster based skills development Student enterprise Boot Camps / Summer Schools All activities need to evidence that they are employer or sector-led, focussed on the D2N2 LEP priority sectors and strategic economic growth for D2N2. There is an expectation that project bids will be consortia with a mix of stakeholders and partners. (Links need to be made with other ESF programmes to ensure there is no duplication of engagement activities). When and how procured ESF-Open Call: Q ESIF Spend Outputs Totals 264,834 1,000,000 3,500,000 4,764,834 Aged 15- Participants Unemployed Inactive Employed 24 1, , Key : 17: Meeting the Needs of Key Sectors and Higher Level Skills Development Thematic Objective: 10: Investing in Education, Skills and Lifelong Learning 10.4: Develop Sector Growth There is a distinct need for provision across the D2N2 area to be demand-led, and for employers and sectors to lead on the skills and employment agenda to provide skills solutions to enable job creation. We will procure innovative projects which are aligned to the Skills for Growth strategy which will further add value to existing services, activities and funding and complement the D2N2 offer to Meet the Needs of Key Sectors, and in particular micro and SMEs. Potential activities will be to: Encourage and deliver successful employer-led partnerships which will be instrumental in bringing about new jobs, skills and growth Build a coherent set of requirements and possible solutions to skills shortages and job creation; Boost enterprise, entrepreneurship and business creation Consolidate knowledge, activities, expertise and capability within the area; Support employers to take a lead on shaping investment in demandled provision and supply-side goods within their localities and sectors; Develop delivery methodologies to encourage aggregation so that employer and or sector led sustainable programmes can be delivered locally and to enable the exchange of experiences and good practice; Progression into employment training needs to be guided by employers rather than providers and the training provision needs to be linked directly to the needs of the sector; Share learning, continued networking and more affordable delivery focused on business needs with a greater alignment to strategy and 44

45 investment; Develop solutions in light of the Apprenticeship Reforms to assist small businesses but which links with existing services and ESF programmes. When and how procured ESF-Open Call: Q3/ ESIF Spend Totals Outputs 725, ,563 1,111,498 Aged 15- Participants Unemployed Inactive Employed Key : 18: Increase Employability and Enterprise Skills: Thematic Objective: 10: Investing in Education, Skills and Lifelong Learning Ensure all young people in D2N2 are informed about enterprise, entrepreneurship, career insights and employability, so that they make better-informed careers choices with an understanding of current and future economic growth in D2N2; create a D2N2 Employability Framework for schools covering employability and enterprise delivered through Local Charters which address local issues; provide an integrated package of support for schools, including work experience, either through D2N2 or through local initiatives; develop a D2N2 Escalator to Employment to ensure a joined up pathway of support to bring people into the labour market; provide a range of activities to encourage enterprise and employability amongst our young people, including skills competitions, events, Student Ambassadors, enterprise activities, and a D2N2 Skills Show. 10.5: CAREERS Local Raise the visibility of and access to career insights and specialist careers support for young people and adults: Youth unemployment in the D2N2 area is high, and the jobs market is increasingly competitive, with fewer entry level opportunities. Many employers and agencies comment that young people are not adequately prepared to enter the labour market, with a lack of employment-related skills, and have expressed concern about the consistency and quality of careers advice and information, and the appropriateness of choices made by young people and adults. The objectives of support under this thematic objective are closely aligned to the Skills Strategy priorities: To ensure education and training systems reflect employer requirements; To equip the future workforce with the skills and competencies required by local employers; Extend and deepen engagement between business sectors, employers and schools; Encourage better matching of skills supply with employer need to address recruitment difficulties and unemployment; and To increase young people s realisation of local career opportunities To foster enterprise and the characteristics of entrepreneurial behaviour, career adaptability and resilience. Consortia to implement the D2N2 Employability Framework; a common standard of work preparation across all D2N2 schools and to fund an integrated employability offer to schools which includes increased information through careers guidance to young people about key sectors and career pathways. An element of capacity building and incentives to link employers with schools effectively, whilst utilising and connecting with existing mechanisms (including the NCS); Deliver local competitions and events which link into the regional and national skills shows; Deliver the menu of activities highlighted in the D2N2 Employability 45

46 Framework which could include some match funding from the employability providers; Innovative approaches to IAG to inform schools of the D2N2 Escalator which sets out employment, vocational and higher level pathways, especially related to the D2N2 LEP key sectors; Funding to be utilised for 15+ students in full time education; Raise awareness and increase participation of the National Citizenship Service across all D2N2 schools for disadvantaged and those at risk of becoming NEETs, working with the local contracted providers of the service; Provide a range of employer led summer school activities for 15+ around enterprise, entrepreneurship and career insights for the D2N2 key priority sectors aligned to the D2N2 Employability Framework. An incentive to schools to reward them for adopting the D2N2 Employability Framework methodology An increased incentive to schools for securing alternative to support delivery of enterprise, entrepreneurship and careers insights across all year groups. There will be a requirement to link into the Sector Consultative Task Groups when promoting the opportunities in the D2N2 LEP key sectors (link to Meeting the Needs of Key Sectors specification). There will be a requirement in the contract to work in partnership with the National Careers Services When and how procured SFA Opt-in: Q ESIF Spend Outputs Totals 668, , ,000 2,000,000 Aged Participants Unemployed Inactive Employed Key : 18: Increase Employability and Enterprise Skills Thematic Objective: 10: Investing in Education, Skills and Lifelong Learning 10.6: Enterprise, Innovation and Pathways Youth unemployment in the D2N2 area is high, and the jobs market is increasingly competitive, with fewer entry level opportunities. Many employers and agencies comment that young people are not adequately prepared to enter the labour market, with a lack of employment-related skills, and have expressed concern about the consistency and quality of careers advice and information, and the appropriateness of choices made by young people and adults. The objectives of support under this thematic objective are closely aligned to the Skills Strategy priorities: To ensure education and training systems reflect employer requirements; To equip the future workforce with the skills and competencies required by local employers; Extend and deepen engagement between business sectors, employers and schools; Encourage better matching of skills supply with employer need to address recruitment difficulties and unemployment; To increase young people s realisation of local career opportunities; and To foster enterprise and the characteristics of entrepreneurial behaviour, career adaptability and resilience. 46

47 This project is an extension of the ESF funded project Employability and Careers which is the delivery of the D2N2 Employability Framework. Funding can be used to deliver a more localised offer. We will procure innovative projects which are aligned to the Skills for Growth strategy to raise the visibility of and access to career insights and specialist careers support for young people and adults - which will further add value to existing services, activities and funding and complement the D2N2 offer. Potential activities will be to: All activities needs to evidence that they are employer or sector-led, engage with schools and academies (where appropriate), focussed on the D2N2 LEP priority sectors and add to the strategic economic growth for D2N2. There is an expectation that project bids will be consortia with a mix of stakeholders and partners. Activities will need to link with the appropriate LA, D2N2 Sector Consultative Task Groups, Employment and Skills Boards and the National Careers Service. There will be a requirement to evidence that activities will not duplicate or undermine any national programmes or D2N2 LEP ESF funded programmes. 100k - 350K projects across the three years will be accepted. When and how procured ESF-Open Call Q ESIF Spend Outputs Totals 577, ,724 1,466,503 Aged Participants Unemployed Inactive Employed

48 7. Community Approach Options consultation In our ESIF Strategy, the D2N2 LEP set out its position that it would wish to operate a CLLD (Community Led Local Development) programme in its ESIF Strategy, in order to facilitate community level solutions to very local economic development issues. This approach, in principle, was supported in consultation. The D2N2 ESIF strategy states that this position and any implementation of a CLLD approach will be subject to further clarity on the potential CLLD offer from the UK government being received and a further local view being taken on whether it remains appropriate for D2N2 to pursue a CLLD option. The UK government remains in discussion with the European Commission about the size and shape of a potential CLLD programme in England, but has issued further guidance to LEPs that can be downloaded from the 'Special Update' provided by Government in August The European Commission has presented significant challenges to the Government s CLLD proposals, which may take some time to resolve and the outcome remains uncertain, D2N2 is keen to hear views on whether CLLD, as currently described remains the best and most viable option for using ESIF funding to address strategic local economic development issues. The strengths and weaknesses of three potential community approaches are outlined below. 1. CLLD (Community Led Local Development) Community Led Local Development is the UK Government s mechanism to facilitate targeting of ESIF funds on very local economic development issues through community led solutions. CLLD supports a long term community development approach in which funding follows the development, by a local action group that is representative of the target community, of a local development strategy, which should be in place before 31 st December Up to 25% of CLLD allocations can be used to support the running costs of a Local Action Group in each CLLD area. LEPs may allocate up to 5% of their ESIF funds to support CLLD, drawing funding from a number of different thematic objectives with the LEP s ESIF strategy. CLLD may cover functional geographic areas of between 10,000 and 150,000 people. They require local match funding and an accountable body to receive and be accountable for the use of funds. This usually a public body, mostly a local authority. There is a minimum public sector contribution of 3m euro to each LAG/CLLD, which means that D2N2 could support approximately 8 CLLD areas from a maximum permissible ESF & ERDF allocation of 12.2m euro ( 10.44m) to a CLLD programme. The role for the LEP is to identify the areas in which CLLD would apply and then the ESIF Programme Board would consider individual project applications as they come in. The UK Government has not yet agreed its CLLD approach with the European Commission, which has challenged the Government s initial proposals, therefore uncertainty remains about the potential focus and geographic restrictions on LEP CLLD approaches. Current government guidance indicates that CLLD will be focused on the bottom 20% of wards in IMD and there is a lack of clarity about potential overlap with LEADER areas. The CLLD concept retains the potential to help both build capacity and social capital in selected communities and bring, in time, economic benefits, but it is a potentially long and slow process and subject to yet to be defined rules and criteria set by Government and the European Commission. A brief overview of the potential strengths and weaknesses of the CLLD approach is given below. Strengths: 48

49 25% project development costs and longer term approach to build community capacity Long term, multi-year projects Concentration of spend in an area Weaknesses: Uncertainty on UK government approach and EC view on eligibility, which could mean a potentially geographically restrictive approach depending on EC view on eligibility of LEADER areas and deprivation criteria Mechanistic approach. Long timescale no spend until at least 2016 and potentially much later Potential for up to 25% of budget to be absorbed in overhead costs rather than delivery Minimum size of programme means few awards could be made and their larger size means that there is risk of duplication of mainstream activity and dilution of very local focus intended. Given timescales, it is only feasible to run a once only opportunity to access the CLLD programme. The selection of a few areas for concentrated investment will be a lengthy and potentially contentious process, especially given the uncertainty over the eligibility of the overall UK approach. 2. Bespoke D2N2 Local / Community Economic Programme As an alternative to the CLLD approach, there is the potential for D2N2 LEP to design its own community scale programme and work around some of the restrictions in the CLLD approach. However, a D2N2 bespoke programme could not include 25% overhead funding to support community consultation and Local Action Group development. Views are invited about how a D2N2 programme could be shaped. It could be a programme that invites local organisations to bring match to run integrated, multi-theme, local delegated grant programmes or it could be separated into an or it could be operated on a thematic basis. A bespoke programme could invite local areas to express interest in applying for a community scale project involving a number of components, with a single accountable body. (i.e. an accountable body agrees to bring together a number of smaller community based projects within a single community-led programme application to tackle very local economic development issues or to run a delegated local grant programme.) There would therefore be an emphasis on community / accountable body engagement in the development of propositions or to come forward with a defined programme to respond to local need, A number of potential eligible thematic areas of focus could be identified to support communities to develop projects that are both community led and fit with the economic goals of the D2N2 ESIF strategy. Those thematic priority areas could include; Community based broadband provision / adaptation Community low carbon and resource efficiency activity Community economic activity programme (skills, social inclusion, employment, start-up) Community asset development programme Community transport / employment programme The geographic size / population size, coverage, timescale, number of awards and overall project value parameters would be for the LEP to determine rather than be pre-set by the CLLD model. Although a bespoke programme would not include a 25% funded programme development stage, it could; use a 2 stage approach with sufficient interval between the outline and final stages to enable the applicant / accountable body to undertake appropriate community consultation to develop their initial proposition into a community owned programme with proper community oversight of delivery. 49

50 Be complemented by an invitation to submit a D2N2 application for Technical Assistance funding to support pipeline development of community projects. Strengths Flexible, locally determined approach and timescale] No need for geographic predetermination or identification of ineligible areas or to await UK Government and EC to agree on parameters of CLLD programme Can be run as an open programme that can be bid into as and when communities are ready subject to sufficient funding being available Can support more rapid delivery and spend than the standard CLLD model Negatives: Doesn t include 25% overhead for projects Still subject to CLG view on eligibility of approach Still requires D2N2 to run a competition between areas Uncertainty over incentive to Accountable Body to apply, at risk, and build partnerships Potential for spend to be diffused in very small programmes with less cumulative impact 3. Mainstream delivery only Resources under ESIF mainstream programmes remain open for application from community scale projects across the D2N2 area, however the approach to delivery in this consultation document indicates the LEP s wish to see larger, comprehensive programmes of scale and impact. Strengths No potential for local duplication of mainstream / universal programmes No requirement to disaggregate funding pots between mainstream and community streams. Weaknesses Risks mainstream delivery being fragmented through a proliferation of very small applications, lessening its overall strategic impact Does not provide for aggregation of projects within a defined area. The most effective use of yet to be allocated ESIF funding, such as that under Thematic Objective 9 Social Inclusion and Combating Poverty will be considered alongside consultation on CLLD / Community approaches. 50

51 8. Sustainable Urban Development Strategy in Nottingham As an EU requirement, at least 5% of the European Regional Development Fund must be spent on sustainable urban development. To achieve this in England, London and Core Cities have been invited to submit proposals to Government to deliver integrated actions for sustainable urban development for use of up to 10% of the relevant Local Enterprise Partnership areas' ERDF allocations. Core Cities will be able to select projects appropriate for their delivery and will be able to access the European Urban Development Network. Nottingham is the Core City in the D2N2 LEP. The D2N2 SUDS area covers the whole of Nottingham City local authority area, plus connected urban parts of the surrounding districts of Ashfield, Broxtowe, Gedling and Rushcliffe including the proposed urban extensions in the Rushcliffe spatial plan. Population for this area is roughly 620,000 based on the ONS estimates for The lead urban authority will be Nottingham City Council. Strategic Approach The funding within the Sustainable Urban Development Strategy is 10.4m, representing 10% of the total ERDF funding in the D2N2 ESIF Strategy of 104.4m. With match funding the SUDS supports activities up to 20.8m. The strategic approach in the SUDS is integrated with the Nottingham Growth Plan and the D2N2 Strategic Economic Plan and its objectives align to the D2N2 ESIF priorities. There is a strong focus on elements of the Nottingham City Deal, particularly on development of the creative and digital industries and clean technology sectors. The SUDS model will provide support for both hard and soft infrastructure for SMEs, along with extensive networking across the Nottingham Urban Area. It will be capable of connecting activities and support within specific hubs, building on existing structures, including heritage buildings and, importantly, reflecting the growth potential within these structures and across to clusters of SMEs and activity in the urban parts of the surrounding districts. The model will develop and deliver an integrated programme of capital and infrastructure works and business support activities in specific hubs within the Core City urban area of Nottingham and surrounding districts. It will be sector specific building on strengths in the Core City and within clusters of SMEs in the district areas. The sector focus of the SUDs will be; 1. Sustainable Growth for the Creative and Digital Industries Sector and investment and extension of the Nottingham Creative Quarter model. An integrated programme of capital and infrastructure works and business support activities to increase GVA in D2N2 creative and digital industries through the development of the Creative Quarter as a hub for creative and digital media business with engagement in the districts across the urban area. 2 Sustainable Growth for the Manufacturing and Clean Technology Sector Delivery of sustainable economic growth across the D2N2 area through the creation of Manufacturing and Clean Technology facilities and sector-specific support in the Nottingham urban area, particularly around the strengths in the energy generation and management fields. Specifically, Nottingham s outer urban areas require a degree of specialist support to ensure they receive the benefits deriving from the development of these sectors and other ESIF priority sectors. How this will be delivered will be subject to the development of detailed arrangements between Nottingham, Ashfield, Broxtowe, Gedling and Rushcliffe and include bespoke activity to reflect local needs and clusters of SMEs. Specialist start-up support for technology driven companies to enable them to benefit from their innovative products will be key as will progression to growth programmes as they develop. 51

52 Approach to Implementation Nottingham City Council will be the lead urban authority for the SUD. It will work with the District and County Councils to commission projects fitting the outline of the SUD given above to bring forward sustainable urban development in the Nottingham core city area. SUDs Funding and D2N2 ESIF strategic activities Thematic Objective 3: Strategic 5: Helping Business Grow: 4m Strategic 6: Key Sector Support: 1.2m Thematic Objective 4: Strategic 7: Low Carbon Markets & Technologies: 4m Strategic 8: Energy Efficiency for SMEs: 1.2m 52

53 Appendix A: Indicative Timetable of Issued by HMG to LEPs in June 2014: All subject to approval of Operational Programmes by the European Commission Timing June 25th June July End July July / August / September September Local teams check progress against ESI Funds Strategy feedback on issues in local partners control; local teams will liaise with LEP areas to provide comments Growth Programme Board meet and consider selection criteria for operations and ESF Opt-in Organisations and how to proceed with terms of reference for sub-committees Information to LEPs and partners on: Specific issues that arise during discussion with the EC on UK Partnership Agreement and Operational Programmes Information to LEPs and partners on: Calls Process - Management of the first round of calls Implementation Plan Eligibility Rules Initial guidance on Financial Instruments Guidance on next steps in CLLD Technical Assistance Performance Management Arrangements Definition of Outputs Terms of Reference and establishment of local ESI Fund committees (if finalised) (NB note: a special update covering some of the above issued in August 2014) Local teams work with local ESI Funds Committee on ESI Funds Implementation Plans and developing the project pipeline (NB note: LIP guidance now due to be issued in October 2014) New ESI Funds section of Gov.uk Website goes live with content on: Business process (Documents produced to date) Policy papers Governance On-line handbook (Information available to date) 53

54 From September October October / November / December GPB Sub-Committees meet to discuss draft Implementation Plans MA works with Partners to develop CLLD proposals ESF & EAFRD Operational Programmes expected to be adopted ESF & EAFRD Implementation Plan content agreed by HMG Information to LEPs and Partners on Application process: Outline and Full application forms Application guidance Appraisal guidance Training and capacity building for local MA teams, partners and applicants on application process. Designation of the formal Programme Monitoring Committees (PMC) for the ESI Funds in the Growth Programme. After designation the PMCs will formally approve(depending on the Fund) Respective Programme Monitoring Committees (PMC) formally constituted and approve (depending on the Fund): Selection Criteria (Structural Funds and EAFRD PMCs) Sub-committees Terms of Reference (Structural Funds and EAFRD PMCs) Technical Assistance Strategy (Structural Funds PMC) Selection of criteria for Opt-In Organisations (Structural Funds PMC) Opt-In organisations apply for funding and MA carries out appraisal Local ESI Fund Committees Agree final Implementation Plan Considers MA Funding Agreement with Opt-In Organisations December January (All subject to OP) ERDF Operational Programme expected to be adopted ERDF Implementation Plan content agreed by HMG Final feedback from Government (following GPB discussion) on any last revisions to LEP ESI Fund Strategies required as a result of negotiations on the Operational Programme. LEP Strategies agreed MA prepares first call Opt-ins finalise specifications with local partners and prepare first calls 54

55 January February February Calls opened For operations as specified For first wave of CLLD activity For first wave of Opt-in activity Information to LEPs, Partners and potential applicants on contract management processes: Project Initiation Visit Monitoring and verifications procedures - Claims Checks & On-the-spot visits Irregularities reporting Structural Funds IT system goes live Spring 2015 First expected investments on the ground, including through Opt-ins 55

56 APPENDIX B: DRAFT SCHEDULE OF CALLS / OPT-IN COMMISSIONS Call SEP Theme(s) Budget Type of Call: 1: Business Support and Innovation Business Support and Access to Finance, Innovation ERDF & EAFRD Timed call: Applicants may bid for one or more of the activities below. Priority will be given to comprehensive applications of scale and impact. It is anticipated that applicants would have 2 months to submit and expression of interest with a further 3 months to develop a full application if invited to do so. For activities 3.4 and 3.5 applicants would be expected to bid to against a set tender specification and budget. Multiple Number of awards Call Open Q1: 2015: If capacity remains, the call will be re-opened, after review, no later than Q Ref TO KA Activities within the call Sector Catapult Innovation Vouchers & "Network to Innovate" "Start to Innovate" encouraging pre/new start innovation "Finance to Innovate" to support routes to market, collaboration with Opt Ins 1.5: 1 2 Sector Innovation SPARK OFF Fund (to encourage cross sector innovation 1.6: 1 3 Capital investment Programme for network of Innovation Centres (infrastructure and equipment) 1.7: 1 3 "Technology to Innovate" (specialist support to access tech experts) 2.1: 2 4 Demand stimulation & sign up to S/F Broadband 2.2: 2 4 Business Transformation through ICT Adoption (training & independent diagnostic of hardware and software) 2.3: 2 4 Enhanced Business Connectivity 2.4: 2 4 Final mile / last 5% community solutions to Broadband (Rural) Business Growth Hub (architecture) Business Growth Hub (Advice and services) 3.6: 3 5 Incubation, Grow on Space and Access 3.7: 3 5 Leadership & Management Programme (non ESF & to complement Skills) 3.9: 3 5 Rural Business Advisers 3.10: 3 5 Rural business grant programme 3.12: 3 6 Collaborative Enterprise programme 3.13: 3 6 Visitor Economy Business support/product Development Programme 3.14: 3 6 Creative Industries Support Programme Logistics programme (inc Supply chain collaboration) Transport Equipment Manufacturing Programme (inc Supply chain collaboration Food and Drink programme (inc interventions between producers and distributors) Life Sciences Programme (wrap around SUDs) Construction Programme (inc supply chain and procurement support) 4.1: 4 7 Low Carbon Sector Support Growth Programme (see low carbon strategy 56

57 Low Carbon Transport Technology 4.3: 4 7 Low Carbon support for Supply Chain & Procurement for new markets 4.5: 4 8 Business / Social Enterprise low carbon retrofit programme following Environmental Audit 4.6: 4 8 Low Carbon Construction techniques (inc BIM development & stimulate uptake Sustainable Communities 6.1: 5 11 Business low carbon / energy efficiency advice and Audit x Sector collaboration on knowledge transfer of technical expertise & practical applications in business & communities Indicative Budget ERDF Outputs EAFRD Outputs TOTAL Additional Number of Number of enterprises Number of Infrastructure Number of enterprises enterprises Private accessing companies site Number of Number of Employment enterprises supported supported investment Estimated ICT supported development enterprises new increase in cooperating to to matching GHG People Jobs products with including receiving enterprises supported with introduce introduce public reductions trained created and business green support. supported. enterprises. research new-to-themarkefirm enterprises. new-to-the- support to (tonnes) services resource infrastructure entities. including efficiency. (hectares) products. products. broadband. 5,333,416 11,139,640 14,403,583 30,876, To promote comprehensive and integrated activities, it is proposed to open European Social Fund calls for higher level skills, developing sector growth and enterprise and innovation pathways alongside the Business Support and Innovation call although much of the spend for these programmes will not occur until Call 2: Skills for Sector Growth, Enterprise and Innovation SEP Theme(s) Employment and Skills Budget ESF Type of Call: Timed call: It is anticipated that applicants would have 2 months to submit and expression of interest with a further 3 months to develop a full application if invited to do so. The call would comprise discrete activities with their own budget and output targets Number of awards Multiple When commissioned Q1: 2015: If capacity remains, the call will be re-opened, after review, in Q but no later than Q Ref Activities within Call TO KA Indicative Budget Outputs TOTAL Participants Unemployed Inactive Employed Aged : Higher Skills Development 10 17/18 264,834 1,000,000 3,500,000 4,764,834 1, , Developing sector growth ,111, Enterprise, Innovation and Pathways , ,724 1,466, TOTAL 10 17/18 264,834 2,303,714 4,774,287 7,342,

58 Call 3: Economic Infrastructure SEP Theme(s) Economic Infrastructure Budget ERDF Type of Call: Open Call: Applicants may bid for one or more of the activities below. Priority will be given to comprehensive applications of scale and impact. Rolling call - applicants may bid at any stage. Number of awards Multiple Call Open Q1: 2015 Ref TO KA Activities within the call Flood mitigation measures that support the protection of existing major employment areas Flood mitigation measures focused on strategically important sites/areas identified as central to realising growth aspirations Green and Blue Infrastructure Fund Low Carbon Mobility Indicative Budget ERDF Outputs EAFRD Outputs TOTAL Additional Number of Number of enterprises Number of Infrastructure Number of enterprises enterprises Private accessing companies site Number of Number of Employment enterprises supported supported investment Estimated ICT supported development enterprises new increase in cooperating to to matching GHG People Jobs products with including receiving enterprises supported with introduce introduce public reductions trained created and business green support. supported. enterprises. research new-to-themarkefirm enterprises. new-to-the- support to (tonnes) services resource infrastructure entities. including efficiency. (hectares) products. products. broadband. 848,223 1,507,952 2,073,434 4,429, Call 4: Sustainable Urban Development Strategy Nottingham SEP Theme(s) Business Support and Access to Finance Budget ERDF Type of Call: TBC: Number of awards TBC When commissioned TBC Ref TO KA Activities with the call TBC TBC TBC TBC Indicative Budget ERDF Outputs EAFRD Outputs TOTAL Number of enterprises receiving support. Number of new enterprises supported. Employment increase in supported enterprises. Number of enterprises cooperating with research entities. 58 Number of enterprises supported to introduce new-to-themarket products. Number of enterprises supported to introduce new-to-thefirm products. Additional enterprises accessing ICT products and services including broadband. Private investment matching public support to enterprises. Number of companies supported with business resource efficiency. Estimated GHG reductions (tonnes) Infrastructure site development People including trained green infrastructure (hectares) 1,400,000 1,800,000 1,800,000 5,000, Jobs created

59 5: Youth Employment Initiative for Nottingham Employment and Skills European Social Fund ESF-Open Call ring-fenced for Nottingham Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref TO KA Indicative Budget Outputs TOTAL Participants Unemployed 8.4 Youth Employment Initiative for Nottingham 8/10 14/17 1,030,924 2,169, ,200, : Social Inclusion Call (provisional) Employment and Skills European Social Fund Through call Multiple Call SEP Theme(s) Budget Type of Call: Number of awards Call open Q Ref TO KA Indicative Budget Outputs 9.3 Social inclusion call timing and scale to be determined alongside consultation on community programme / CLLD TOTAL Participants Unemployed Inactive Inactive Employed Employed Aged Aged ,

60 Call 7: Community Programme / CLLD (provisional) SEP Theme(s) All Budget European Social Fund & ERDF Type of Call: TBC Number of awards Multiple Call open TBC Depending on outputs of consultation. Estimate Q Ref TO KA Activities to deliver the ESIF Tbc 3 CLLD Tbc 4 CLLD Tbc 7 CLLD Tbc 8 CLLD Tbc 9 CLLD Tbc 10 CLLD Activities, timing and expenditure under the CLLD / Community Programme are subject to consultation (see Section 7) Indicative Budget ERDF Outputs ESF Outputs TOTAL Additional No. of Number ents No. of Infrastructure Number of enterprises enterprises Private of accessing companies site Number of Employment enterprises supported supported investment Estimated enterpris ICT supported development new increase in cooperating to to matching GHG es products with including Aged enterprises supported with introduce introduce public reductions Participants Unemployed Inactive Employed receivin and business green supported. enterprises. research new-tothe-markethe-firm enterprises. new-to- support to (tonnes) g services resource infrastructure entities. support. including efficiency. (has) products. products. broadband. 1,121,140 1,601,496 2,055,191 4,777,

61 OPT INS OPT IN 1. High Growth Programme SEP Theme(s) Business Support and Access to Finance Budget ERDF Type of Call: Through Growth Accelerator Opt In. Delivery contract to be specified. Number of awards 1 When commissioned ASAP Ref TO KA Activities within the call High Growth Programme Indicative Budget ERDF Outputs EAFRD Outputs TOTAL Number of enterprises receiving support. Number of new enterprises supported. Employment increase in supported enterprises. Number of enterprises cooperating with research entities. Number of enterprises supported to introduce new-to-themarket products. Number of enterprises supported to introduce new-to-thefirm products. Additional enterprises accessing ICT products and services including broadband. Private investment matching public support to enterprises. Number of companies supported with business resource efficiency. Estimated GHG reductions (tonnes) Infrastructure site development People including trained green infrastructure (hectares) 500, , ,000 1,500, Jobs created OPT IN 2. Manufacturing Advice Service SEP Theme(s) Business Support and Access to Finance Budget ERDF Type of Call: Through MAS Opt In. Delivery contract to be specified. Number of awards 1 When commissioned ASAP Ref TO KA Activities within the call Manufacturing Advice Service Indicative Budget ERDF Outputs EAFRD Outputs TOTAL Number of enterprises receiving support. Number of new enterprises supported. Employment increase in supported enterprises. Number of enterprises cooperating with research entities. Number of enterprises supported to introduce new-to-themarket products. Number of enterprises supported to introduce new-to-thefirm products. Additional enterprises accessing ICT products and services including broadband. Private investment matching public support to enterprises. Number of companies supported with business resource efficiency. Estimated GHG reductions (tonnes) Infrastructure site development People including trained green infrastructure (hectares) 500, , ,000 1,500, Jobs created 61

62 OPT IN 3. Trade and Export Programme SEP Theme(s) Business Support and Access to Finance Budget ERDF Type of Call: Through UKTI opt-in. Delivery contract to be specified. Number of awards 1 When commissioned ASAP Ref TO KA Activities within the call UKTI Indicative Budget ERDF Outputs EAFRD Outputs TOTAL Number of enterprises receiving support. Number of new enterprises supported. Employment increase in supported enterprises. Number of enterprises cooperating with research entities. Number of enterprises supported to introduce new-to-themarket products. Number of enterprises supported to introduce new-to-thefirm products. Additional enterprises accessing ICT products and services including broadband. Private investment matching public support to enterprises. Number of companies supported with business resource efficiency. Estimated GHG reductions (tonnes) Infrastructure site development People including trained green infrastructure (hectares) 400, , ,000 1,200, OPT IN 4: EMPLOY Local Employment and Skills European Social Fund Through SFA Opt-In Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref Activities within Call TO KA Indicative Budget Outputs TOTAL Aged Participants Unemployed Inactive Employed : EMPLOY Local: 8 13/14 1,399,252 1,865,669 2,725,079 6,000, Jobs created OPT IN 5: Time2Change Employment and Skills European Social Fund Through DWP Opt-In Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref TO KA Indicative Budget Outputs TOTAL Aged Participants Unemployed Inactive Employed Time2Change ,000,000 2,000,000 2,000,000 6,000,

63 OPT IN 6: Unnamed Employment and Skills European Social Fund Through DWP Opt-In Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref TO KA Indicative Budget Outputs TOTAL Aged Participants Unemployed Inactive Employed : Unnamed to be reviewed in Dec ,570,541 1,570, OPT IN 7: D2N2 Youth Employment Employment and Skills European Social Fund Through DWP Opt-In Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref TO KA Indicative Budget Outputs TOTAL Participants Unemployed 8.5 D2N2 Youth Employment ,000 1,100,000 1,468,000 3,200, OPT IN 8: D2N2 Social Inclusion Programme Employment and Skills European Social Fund Through the Big Lottery Opt-In Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref TO KA Indicative Budget Outputs TOTAL Participants Unemployed 9.1 D2N2 Social Inclusion Programme 9 15/16 1,801,684 2,357,730 2,558,292 6,717, Inactive Inactive Employed Employed Aged Aged

64 OPT IN 9: SKILLS Local Employment and Skills European Social Fund Through SFA Opt-In Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref TO KA Indicative Budget Outputs TOTAL Participants Unemployed 10.1 SKILLS Local ,333,334 2,333,333 2,333,333 7,000, OPT IN 10: Generating Outcomes Employment and Skills European Social Fund Through SFA Opt-In Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref TO KA Indicative Budget Outputs TOTAL Participants Unemployed 10.2 Generating Outcomes ,000,000 1,000, Inactive Inactive Employed Employed Aged Aged OPT IN 11: CAREERS Local Employment and Skills European Social Fund SFA Opt-in Call SEP Theme(s) Budget Type of Call: Number of awards 1 Call open Q Ref TO KA Indicative Budget Outputs TOTAL Participants Unemployed 10.5 CAREERS Local , , ,000 2,000, Inactive Employed Aged

65 APPENDIX C: ALLOCATION PROFILE 2015, 2016, 2017 SEP Theme TOTAL Business Support Access to Finance 6,733,275 12,406,057 16,569,907 35,709,238 Innovation 1,801,684 3,202,993 4,404,116 9,408,793 Economic Infrastructure 936,623 1,665,108 2,289,524 4,891,254 Skills, Employment and Social Inclusion 12,011,225 16,014,968 20,018,707 48,044,900 TOTAL 21,482,806 33,289,125 43,282,253 98,054,184 Call CALL 1: Business Support and Innovation 5,333,416 11,139,640 14,403,583 30,876,638 CALL 2: Skills for Sector Growth, Enterprise and Innovation 264,834 2,303,714 4,774,287 7,342,835 CALL 3: Economic Infrastructure 848,223 1,507,952 2,073,434 4,429,608 CALL 4: SUDS 1,400,000 1,800,000 1,800,000 5,000,000 CALL 5: YEI for Nottingham 1,030,924 2,169, ,200,000 CALL 6: Community Programme / CLLD (provisional) 1,121,140 1,601,496 2,055,191 4,777,827 CALL 7: Social Inclusion (provisional) ,032 Opt Ins OPT IN 1: High Growth Programme 500, , ,000 1,500,000 OPT IN 2: Manufacturing Advisory Service 400, , ,000 1,200,000 OPT IN 3: Trade and Export Programme 500, , ,000 1,500,000 OPT IN 4: EMPLOY Local 1,399,252 1,865,669 2,735,079 6,000,000 OPT IN 5: Time2Change 2,000,000 2,000,000 2,000,000 6,000,000 OPT IN 6: Un-named Employment 0 0 1,570,541 1,570,541 OPT IN 7: D2N2 Youth Employment 632,000 1,100,000 1,468,000 3,200,000 OPT IN 8: Social Inclusion Programme 1,801,684 2,357,730 2,558,292 6,717,706 OPT IN 9 SKILLS Local 2,333,334 2,333,333 2,333,333 7,000,000 OPT IN 10: Generating Outcomes 1,000, ,000,000 OPT IN 11: CAREERS Local 668, , ,000 2,000,000 Unallocated pending Access to Finance review 250,000 1,000,000 3,000,000 4,250,000 TOTAL 21,482,806 33,289,126 43,282,253 98,054,185 65

66 APPENDIX Ci: REPROFILED ALLOCATION IF ERDF OPERATIONAL PROGRAMME APPROVAL IS DELAYED ERDF funds, except those potentially deployed through opt ins are moved from 2015 and allocated pro-rata to 2016 and Spend and output totals by 2018 remain unchanged. Calls ,16,17 CALL 1: Business Support and Innovation 0 13,465,592 17,411,045 30,876,638 CALL 2: Skills for Sector Growth, Enterprise and Innovation 264,834 2,303,714 4,774,287 7,342,835 CALL 3: Economic Infrastructure 1,865,098 2,564,510 4,429,608 CALL 4: SUDS 2,500,000 2,500,000 5,000,000 CALL 5: YEI for Nottingham 1,030,924 2,169, ,200,000 CALL 6: Community Programme / CLLD (provisional) 881,197 1,702,524 2,194,106 4,777,827 CALL 7: Social Inclusion (provisional) ,032 Opt Ins OPT IN 1: High Growth Programme 250, , ,000 1,500,000 OPT IN 2: Manufacturing Advisory Service 200, , ,000 1,200,000 OPT IN 3: Trade and Export Programme 250, , ,000 1,500,000 OPT IN 4: EMPLOY Local 1,399,252 1,865,669 2,735,079 6,000,000 OPT IN 5: Time2Change 2,000,000 2,000,000 2,000,000 6,000,000 OPT IN 6: Un-named - Employment 0 0 1,570,541 1,570,541 OPT IN 7: D2N2 Youth Employment 632,000 1,100,000 1,468,000 3,200,000 OPT IN 8: Social Inclusion Programme 1,801,684 2,357,730 2,558,292 6,717,706 OPT IN 9: SKILLS Local 2,333,334 2,333,333 2,333,333 7,000,000 OPT IN 10: Generating Outcomes 1,000, ,000,000 OPT IN 11: CAREERS Local 668, , ,000 2,000,000 Unallocated pending Access to Finance review 1,062,500 3,187,500 4,250,000 TOTAL 12,711,225 37,185,753 48,157,207 98,054,185 66

67 APPENDIX D: PROJECTED OUTPUTS SUMMARY 2015, 2016, 2017 Calls ERDF Indicators ESF Indicators * EAFRD Ind s Number No. of No.f Addit. Private Infrastruct c. No.of Employm Number of a. No. ents enterpris ents investme ure site employe Number Number ent of compani Total unemplo supporte es accessin nt Estimate developm d Number of of new increase enterpris es number yed (inc. b. No. of d to supporte g ICT matching d GHG ent (includin of enterpris enterpris in es supporte of long-term inactive People Jobs introduce d to products public reduction including g selfemploye ts aged participan es es supporte cooperati d with participa unemplo participa trained created new-to- introduce & support s green receiving supporte d ng with business nts (a. + yed) nts. the- market the-firm including enterpris ure participa new-to- services to (tonnes) infrastruct d) support. d. enterpris research resource b. + c.) participa es. entities. efficiency nts. products. products. br dband. es. (hectares) nts.. CALL 1: Business Support and Innovation CALL 2: Skills for Sector Growth, Enterprise and Innovation CALL 3: Economic Infrastructure CALL 4: SUDS CALL 5: YEI for Nottingham CALL 6: Community Programme / CLLD (provisional) CALL 7: Social Inclusion (provisional) Opt Ins OPT IN 1: High Growth Programme OPT IN 2: Manufacturing Advisory Service OPT IN 3: Trade and Export Programme OPT IN 4: EMPLOY Local OPT IN 5: Time2Change OPT IN 6: Un-named - Employment OPT IN 7: D2N2 Youth Employment OPT IN 8: D2N2 Social Inclusion Programme OPT IN 9: SKILLS Local OPT IN 10: Generating Outcomes OPT IN 11: CAREERS Local Unallocated pending Access to Finance review TBC TOTAL

68 APPENDIX E: GLOSSARY OF TERMS BIM Building Information Modelling CHP Combined Heat and Power CLLD Community Led Local Development CPD Continuing Professional Development CV Curriculum Vitae D2 ESB Derby and Derbyshire Employment and Skills Board D2N2 Derby, Derbyshire, Nottingham and Nottinghamshire DECC Department for Energy and Climate Change DMO Destination Management Organisation DWP Department for Work and Pensions EAFRD European Agricultural Fund for Rural Development EC European Commission ERDF European Regional Development Fund ESA Employment and Support Allowance ESF European Social Fund ESIF European Structural and Investment Funds (ERDF, ESF & EAFRD) FEI Financial Engineering Instrument FTE Full Time Equivalent GPB Growth Programme Board GVA Gross Value Added HEI Higher Education Institution HMG Her Majesty s Government IAG Information, Advice and Guidance ICT Information and Communication Technologies IMD Index of Multiple Deprivation IT Information Technology JCP Job Centre Plus JEREMIE A European Commission fund of funds platform to use ERDF to promote access to finance for SMEs KTP Knowledge Transfer Partnership LA Local Authority LAG Local Action Group LEADER Liaison Entre Actions de Développement Économique LEP Local Enterprise Partnership LIP Local Implementation Plan LMI Labour Market Information MA Managing Authority MAS Manufacturing Advisory Service N2 SEB Nottingham and Nottinghamshire Skills and Employment Board NAS National Apprenticeship Service NCS National Careers Service NEET Not in Employment, Education or Training NUTS Nomenclature of Territorial Units for Statistics OEM Original Equipment Manufacturer ONS Office for National Statistics Q Quarter (of the year Q1 to Q4) R&D Research and Development S/F Broadband Superfast Broadband SCTG Sector Consultative Task Group (skills) SFA Skills Funding Agency SME Small and Medium Sized Enterprise SUDs Sustainable Urban Development Strategy TBC To be confirmed TNA Training Needs Assessment TSB Technology Strategy Board UK United Kingdom of Great Britain and Northern Ireland UKTI United Kingdom Trade and Investment YEI Youth Employment Initiative 68

69 APPENDIX F: SURVEY 1. Are we focusing on the right activities to promote growth? 2. Have we got the right number of activities and the right balance between them? 3. Have we got the balance right between specifying the activities that we would wish to see delivered and allowing for innovation and integration by applicants? If not, how could this be improved? 4. Have we got the approach to delivery through opt-ins and calls right, what are the key issues that we need to consider? 5. Which of the delivery models outlined for our employment and skills programmes is most suitable for each programme? 6. What are your views on our community level approach? Do you have a preference between a CLLD, D2N2 bespoke or mainstream only approach? What should a bespoke approach focus on? 7. Are there any programmes and activities that lend themselves to a particular geographic delivery focus, such as very local delivery, LEP-wide delivery or through collaboration with other LEPSs? 8. We wish to open as much of the programme for applications as early as possible. Will you be able to respond in this timescale? How could we improve the timing of the calls? 9. How can we best ensure that the benefits of the programme are appropriately shared within D2N2? To take the survey, please follow this link PLEASE SUBMIT YOUR FEEDBACK BY MIDDAY, FRIDAY 14 th NOVEMBER

70 70