European funding
The new structural funds programming period will run from 2007-2013. While the current European structural funds programming period effectively comes to an end at the end on 31 December 2006, it is important to note that project activity funded by the programme may be continuing until 2008.
Additionally, because of the consultation framework relating to the new programme followed by the European Commission approval and programme roll-out process it is not anticipated that applications will be invited to the new programme until autumn 2007.
This makes it unlikely that there will be a significant call on corporate match funding to support new European projects until the 2008-09 financial year.
Progress is currently being made on arrangements for the 2007-13 programme as follows:
- The EU Council and the European Parliament have reached agreement on the EU financial perspective for 2007-13. Agreement on the budget paved the way for adoption of the Structural and Cohesion Fund Regulations for 2007-13 in July; The Commission has adopted draft community strategic guidelines, which will be adopted by the council in the autumn.
- The Department of Trade and Industry (DTI) held a consultation on the draft National Strategic Reference Framework between 28 February and 22 May 2006, and received a large number of responses. These are currently being analysed and a final version of the framework will be produced in co-operation with other Government departments and devolved administrations. DTI expects to publish the Government's response including the final version of the framework during autumn 2006. This will include details of the ERDF and ESF allocations for London.
ERDF
The London Development Agency is leading production of an ERDF operational programme for London and is currently going through a pre-consultation process with key organisations including sub-regional partnership bodies and local authorities. This will be followed by a wider, lengthier consultation of all stakeholders on a detailed draft operational programme in the autumn which, will be submitted to the Commission by spring 2007. The key priorities identified within the consultation documentation are outlined below:
1) Innovation, research & development
To transform London’s economy into a leading knowledge city will require investment into three main areas; skills, knowledge base and knowledge infrastructure. This focus is in-line with the EU Community's Guidelines. Taking into account all the above, it is proposed that the following draft themes should be:
- Developing a culture of creating and using knowledge and innovation through London's businesses
- Empowering London's businesses to adapt new ideas, products, processes and services
- Ensuring that particular sectors (creative industries, construction, green sector and technologies/science) embed innovation best practice into businesses
- Enhancing competitiveness through R&D technology. - building links with the European Commission's 7th Framework Programme on R& D
- Supporting provision of key shared IT infrastructure or processes where this enables increased productivity
2) Business and enterprise development
Providing all areas of London with the infrastructure and services to support and sustain creative, high value enterprise is fundamental to the successful development of a high-productivity economy. This priority aims to take into account some of the key factors required to help London's business realise their opportunities and address the threats they face. Taking into account the above, the following draft themes have been identified:
- Business support targeted to small, micro businesses and growing social enterprises
- Improving access to business support; particularly for diverse communities not traditionally accessing services
- Access to finance through providing targeted brokerage to SMEs and diverse groups
- Promoting and supporting businesses to become greener and sustainable (e.g. recycling, adapting buildings to become greener, energy efficiency)
- Focus on retaining and enabling growth of particular sectors like: creative industries, construction, green sector and technologies/science.
3) Sustainable urban regeneration
London is a city, made up of distinct but interrelated areas, places and communities. The London Plan sets out the spatial strategy required to deal with some of the capital infrastructure needs. But the objective of this priority is wider than just supporting capital projects as it will aim to build sustainable communities by ensuring that the different elements that make up a successful city are inter-linked and result in a sustainable capital that benefits all Londoners.
Based on the above, the following themes are being proposed:
- Improvements via environmental initiatives to particular areas of London
- Support to capital infrastructure that assists with the development of sustainable amenities, specially to meet priorities identified in the London Plan
- Access to finance through providing targeted brokerage to SMEs and diverse groups
- Developing Community businesses.
ESF
The Department for Work and Pensions (DWP) ESF Division has begun to draft the England ESF Operational Programme (OP) for 2007-2013.
An initial working draft of the operational plan for comment on an informal basis was sent to key stakeholders in July. DWP intend to begin a formal consultation later in the summer, although timing will depend on the publication of the Government's response to the National Strategic Reference Framework consultation.
Following the formal consultation, DWP will submit a proposal for a national operational programme to the European Commission. The deadline for submitting the programme is likely to be in early March 2007.
Subject to the Commission approving the operational programme by the middle of 2007, it may be possible to start programme activity in autumn 2007.
Other useful links for European information and downloadable online application forms and guidance are :
Pid No: 824


