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BD16 European Social Fund (ESF Welsh European Funding Office West Wales and the Valleys Convergence Programme Operational Programme For The European Social Fund 2007-2013 12 June 2009 2007UK051PO002 Operational Programme Contents Chapter Page Executive Summary (i) 1. Introduction 1 2. Analysis 3 3. Strategy 69 4. Priorities 115 5. Cross Cutting Themes 171 6. Implementing Provisions 182 7. Financial Allocations 217 Annexes Annex A – Consultation Responses Annex B – Lessons Learned Report Annex C – Ex Ante Evaluation Report Annex D – Equal Opportunities Analysis and Matrix Annex E – Environmental Sustainability Matrix Annex F – Welsh Assembly Government Organogram Annex G – Indicative List of Strategic Frameworks Annex H – Strategic Framework Co-ordinator responsibilities Annex I – Financial Flows and Controls Annex J – Summary of Monitoring and Evaluation Plan Annex K – Indicators Annex L – Summary of Cross Cutting Themes Lessons Learnt List of Operational Programme Figures and Tables Figure 1. Map of the West Wales and the Valleys Convergence Programmes area ............................................................................................5 Figure 2. Analysis of GVA per head differences across Wales compared to the UK average, 2001–2003 average ..............................................................8 Figure 3. Population age profile percentage point difference in age group shares, West Wales and the Valleys and East Wales compared to Welsh average, 2004................................................................................................10 Figure 4. Population age profile percentage point difference in age group shares, Wales and the UK compared to EU25 average, 2004.......................11 Figure 5. Age breakdowns of population change, 1991–2004 ....................13 Figure 6. Local Authority analysis of population change, 2001–2004 .........14 Figure 7. Progress against Lisbon targets 2005 and 2010..........................19 Figure 8. Employment Rates by Local Authority .........................................22 Figure 9. Economic Inactivity rates by Local Authority ...............................23 Figure 10. Economic Inactivity rate by reason given, 2004...........................24 Figure 11. Number of economically inactive in Wales in excess of UK average inactivity rates, by age group, gender and reason, 2003 .................26 Figure 12. Bus and walking access to key employment centres (a) ..........28 Figure 13. Older Worker Employment rate ................................................34 Figure 14. Average gross weekly earnings (a)(b)......................................35 Figure 15. Qualification/skills set (UK=1)...................................................40 Figure 16. Economic inactivity rates by highest qualification, 2004 (per cent of the working age population).......................................................................44 Figure 17. Civilian workforce jobs (UK=1) .................................................49 Figure 18. Overall Index of Multiple Deprivation........................................53 Figure 19. Access to services....................................................................55 Figure 20. Physical Environment Deprivation............................................57 Figure 21. Links between Operational Programmes, CSGs and Integrated Guidelines .................................................................................................74 Figure 22. Links between CSG objectives and ESF and ERDF Convergence Priorities...................................................................................75 Figure 23. Wales Spatial Plan Areas .........................................................83 Figure 24. Wales Policy Map.....................................................................84 Figure 25. Key Strategies Map ..................................................................84 Figure 26. Wales Spatial Plan Collaboration and Implementation Structures ...............................................................................................189 Figure 27. Proposed Committee Structure ..............................................191 Figure 28. Setting selection and prioritisation criteria ..............................196 Figure 29. Applying selection and prioritisation criteria............................196 Figure 30. Signposting on eligibility and Framework fit............................198 Table 1. Contribution of the factors that explain GVA per head …………9 differentials, percentage of total gap Table 2. Population by age group, 2004……………...............................10 Table 3. Population change since 1981……………………………………12 Table 4. Components of population change, 2001 – 2004………………13 Table 5. Average annual net migration trends area analysis, …………..16 2002 - 2004 Table 6. Labour market summary, EU25 comparison (percentage)……18 Table 7. Labour market summary – employment, unemployment,……..21 economic inactivity Table 8. Percentage of adults reporting selected illnesses/conditions…25 Table 9. Labour market summary, disaggregated by disability and…….31 ethnicity Table 10. Employment rates by gender and age…………………………..33 Table 11. Employment rate by highest qualification, Wales………………39 Table 12. Levels of highest qualifications held by persons of working…..41 age, % of working age population, 2004 Table 13. Levels of highest qualifications held by persons of working…..42 age, by gender, % of the working age population, 2004 Table 14. Attainment of pupils in final year of compulsory education……45 2005/06 provisional results Table 15. Attainment of pupils aged 17 at start of the academic year,…..46 2005/06 provisional results Table 16. Participation in lifelong learning, 2004…………………………...47 Table 17. Employment in high and medium high technology …………….50 manufacturing and knowledge intensive high-technology services, % of total employment Table 18. Risk of being in low income groups after housing costs……….51 Percentage (3 year rolled average 2002/03 – 2004/05) Table 19. Number and percentage of LSOAs within each local …………54 authority that are within the most deprived (10%, 20% 30% or 50%) in Wales Table 20. West Wales and the Valleys SWOT analysis…………………..62 Table 21. Priority 1 contribution to EU and UK policy priorities…………..89 Table 22. Priority 2 contribution to EU and UK policy priorities…………..90 Table 23. Priority 3 contribution to EU and UK policy priorities…………..91 Table 24. Priority 4 contribution to EU and UK policy priorities…………..93 Table 25. Programme Level Tracking Indicators………………………….104 Table 26. Programme level indicators……………………………………..105 Table 27. Respondents to the Consultation……………………………….112 Table 28. Priority 1 Indicators and Targets………………………………..121 Table 29. Priority 2 Indicators and Targets………………………………..134 Table 30. Priority 3 Indicators and Targets………………………………..149 Table 31. Priority 4 Indicators and Targets………………………………..161 Table 32. Representative Membership of PMC by Sector ………………192 Organisation Table 33. West Wales and the Valleys ESF Convergence Programme..221 Priority axes by sources of funding (in euros millions) Table 34. West Wales and the Valleys ESF Convergence Programme..222 Year by source for the programme (in euros millions) Table 35. Indicative allocations by category of intervention……………..223 Executive Summary Introduction The agreement of the European Council and the European Parliament on the EU budget for 2007-2013 means that West Wales and the Valleys will receive “Convergence” funding – the highest level of support available under the next round of Structural Fund programmes. West Wales and the Valleys qualifies for this support because at the time of the European Union (EU) budget agreement in December 2005, the region’s average Gross Domestic Product (GDP) per head was just below 75% of the European GDP average – the qualification limit. This provides West Wales and the Valleys with a major opportunity to build on the very significant progress made under the Objective 1 programme 2000 – 2006 and to complete the transformation from a region suffering protracted economic problems into a strong and sustainable economy. The region will receive total Community funding of €2.08 billion to support Convergence programmes worth over €4 billion. This ESF Convergence programme will receive Community funding of €833 million (40% of the total). When this is combined with national public and private funding, the programme will provide €1.50 billion to boost growth and jobs over the period 2007-2013. Vision Our vision for West Wales and the Valleys is of a vibrant, entrepreneurial region at the cutting edge of sustainable economic development, with its people living in prosperous, strong, healthy, safe, and where relevant, bilingual communities within an ever improving natural environment. Our ambition is for West Wales and the Valleys to be at the forefront of the EU’s drive to be a beacon of economic, social and environmental progress to the rest of the world. West Wales and the Valleys will be a world-class exemplar of a region of 1.9 million people, at the geographical periphery of Europe, but thriving in competitive world markets and providing a world-class environment in which people want to live, work and play. Analysis The analysis shows that the West Wales and the Valleys economy has improved considerably in recent years, continuing its transformation from a long period of economic change that saw the disappearance of much traditional industry. Over recent years, the region has experienced
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