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West Midlands European Regional Development Fund Operational Programme

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West Midlands European Regional Development Fund Operational Programme Regional Competitiveness and Employment Objective 2007 – 2013 West Midlands European Regional Development Fund Operational Programme Version 3 July 2012 CONTENTS 1 EXECUTIVE SUMMARY 1 – 5 2a SOCIO-ECONOMIC ANALYSIS - ORIGINAL 2.1 Summary of Eligible Area - Strengths and Challenges 6 – 14 2.2 Employment 15 – 19 2.3 Competition 20 – 27 2.4 Enterprise 28 – 32 2.5 Innovation 33 – 37 2.6 Investment 38 – 42 2.7 Skills 43 – 47 2.8 Environment and Attractiveness 48 – 50 2.9 Rural 51 – 54 2.10 Urban 55 – 58 2.11 Lessons Learnt 59 – 64 2.12 SWOT Analysis 65 – 70 2b SOCIO-ECONOMIC ANALYSIS – UPDATED 2010 2.1 Summary of Eligible Area - Strengths and Challenges 71 – 83 2.2 Employment 83 – 87 2.3 Competition 88 – 95 2.4 Enterprise 96 – 100 2.5 Innovation 101 – 105 2.6 Investment 106 – 111 2.7 Skills 112 – 119 2.8 Environment and Attractiveness 120 – 122 2.9 Rural 123 – 126 2.10 Urban 127 – 130 2.11 Lessons Learnt 131 – 136 2.12 SWOT Analysis 137 - 142 3 STRATEGY 3.1 Challenges 143 - 145 3.2 Policy Context 145 - 149 3.3 Priorities for Action 150 - 164 3.4 Process for Chosen Strategy 165 3.5 Alignment with the Main Strategies of the West 165 - 166 Midlands 3.6 Development of the West Midlands Economic 166 Strategy 3.7 Strategic Environmental Assessment 166 - 167 3.8 Lisbon Earmarking 167 3.9 Lisbon Agenda and the Lisbon National Reform 167 Programme 3.10 Partnership Involvement 167 3.11 Additionality 167 - 168 4 PRIORITY AXES Priority 1 – Promoting Innovation and Research and Development 4.1 Rationale and Objective 169 - 170 4.2 Description of Activities to be Supported 170 - 171 4.3 Indicative List of Specific Actions 171 - 174 4.4 Outputs / Results Indicators 174 - 175 Priority 2 – Stimulating Enterprise Development 4.6 Rationale and Objective 176 4.7 Description of Activities to be Supported 177 - 180 4.8 Indicative List of Specific Actions 180 - 183 4.9 Outputs / Results Indicators 183 Priority 3 – Achieving Sustainable Urban Development 4.11 Rationale and Objective 184 - 189 4.12 Indicative List of Specific Actions 189 - 193 4.13 Outputs / Results Indicators 193 - 194 Priority 4 – Developing Inter-regional Activity 4.15 Rationale and objective 195 4.16 Description of activities to be supported 195 - 196 4.17 Indicative list of specific actions 196 - 198 4.18 Outputs / Results Indicators 198 Priority 5 – Technical Assistance 4.20 Rationale and Objective 199 4.21 Description of Activities to be Supported 199 4.22 Indicative List of Specific Actions 200 - 203 4.23 Outputs / Results Indicators 203 4.25 Aggregated Programme Outputs and Results 204 - 205 4.26 Output Definitions 206 - 207 4.27 Impact Indicators 207 5 CROSS CUTTING THEMES 5.1 Environmental Sustainability 208 - 211 5.2 Equal Opportunities 211 - 213 5.3 Implementation of the Cross Cutting Themes 214 - 215 5.4 Monitoring the Cross Cutting Themes 215 - 216 6 FINANCIAL ALLOCATIONS 6.1 Financial Allocations by Year 217 - 218 6.2 Financial Allocations by Priority 218 - 220 7 CO-ORDINATION 7.1 The European Agricultural Fund for Rural 221 - 227 Development 7.2 The European Fisheries Fund 228 7.3 The European Investment Bank 228 7.4 Regional Competitiveness and Employment 228 - 229 Objective: The European Social Fund 7.5 7th Framework Programme 229 - 230 7.6 Competitiveness and Innovation Programme 230 7.7 EU Programme for Lifelong Learning 230 7.8 European Territorial Cooperation 230 - 231 8 IMPLEMENTING PROVISIONS 8.1 Regulatory Context 232 8.2 Managing Authority, Certifying Authority, Audit 232 - 237 Authority and Intermediate Bodies 8.3 Partnership and Committee Structure 238 - 239 8.4 Management and Control System 239 - 244 8.5 Computerised Exchange of Data 244 8.6 Monitoring Arrangements and Systems 244 - 245 8.7 Evaluation Arrangements and Systems 245 - 246 8.8 Financial Implementation 246 - 248 8.9 Financial Flows and Payments 248 - 250 8.10 Financial Management and Control Arrangements 250 - 252 8.11 Information and Publicity 252 - 253 8.12 Supplementary Objectives 253 - 256 8.13 Use of Reserves 256 8.14 Financial Engineering 256 8.15 State Aid 257 9 ABBREVIATIONS 258 - 260 10 DEFINITIONS 261 11 EC COHESION POLICY FLOW DIAGRAM 262 12 ANNEXES A1 Data Annex – Original 264 - 320 A2 Data Annex – Updated 2010 321 - 386 B Equality Impact Assessment Screening 387 - 397 C Indicative List of Strategies and Evidence Data 398 - 399 Sources which have been used for OP Productions D Categorisation of Structural Funds for Assistance 400 - 402 2007 to 2013 E Response to Recommendations from the Ex Ante 403 - 406 Evaluation F Response to the Strategic Environmental Asessment 407 - 411 and Sustainability Appraisal G SEA / SA Monitoring Plan 412 - 413 The Operational Programme was originally developed in 2007 and a number of chanpters and Annexes relate to information which was correct at that time. This includes references to strategies, research documents, organisations and individual contacts. Where appropriate updated chapters and Annexes have been included in this version to reflect updated information. 1. EXECUTIVE SUMMARY 1.1 Background The Regional Competitiveness & Employment Objective (RCE) is the successor to Objectives 2 & 3 and will be a source of European Union Structural Funds in the West Midlands from 2007 to 2013. It will be made up of two complementary programmes. The European Regional Development Fund (ERDF) Programme, worth €400 million, will be managed regionally by Advantage West Midlands. The European Social Fund (ESF) Programme, worth €372 million to the West Midlands, will be managed nationally by the Department for Work and Pensions with input at a regional level. The new Structural Funds programmes link closely to the ambitions of the European competitiveness agenda, the “Lisbon Strategy” and the European policy focus on growth and jobs. The EU Commission set out the aims of the RCE programmes in the Community Strategic Guidelines and in the enabling regulatory framework established by Council Regulations No.1080/2006 and No.1083/2006. Each Member state has produced a National Strategic Reference Framework (NSRF) translating the Community Strategic Guidelines to the national context. 1.2 Regional Arrangements to Draft the New Programme In March, under the direction of the Regional Assembly’s European and International Affairs Partnership, a small regional steering committee was established to prepare the regional operational programme. This steering committee - the RCE Group - included representation from the Learning and Skills Council, Job Centre Plus, Higher Education Association, local authorities, Natural England, WMRA as well as Government Office of the West Midlands (GOWM) and Advantage West Midlands (AWM) the regional development agency. GOWM was responsible for coordinating the activity of the group, whilst AWM took the strategic lead. The Group directed the preparation of an extensive socio-economic analysis setting out the evidence base and strategy for the Programme. This drew upon both the existing and the emerging evidence base for the revised Regional Economic Strategy. Based on this analysis and the overall EU, national and regional policy framework the Programme contains three major priority axes as follows: Promoting Innovation and Research and Development; 1 Stimulating Enterprise Development; Achieving Sustainable Urban Development. These are complemented by two much smaller priorities focusing on inter-regional activity and technical assistance. Care was taken to ensure alignment with the existing West Midlands Economic Strategy (WMES); the emerging priorities of the revised WMES; the Regional Spatial Strategy; and other associated regional policies, whilst ensuring that these new funds bring added value. The funds do not cover all activities outlined in the WMES, but target specific activities within it. The contents of each priority have been prepared by working groups drawn from across the relevant partners and drafts have been discussed by a number of regional bodies. The Programme at every stage has benefited from the detailed observations of the Ex Ante consultants, EKOS, a strategic environmental assessment and the independent Ex Ante Steering Group. The draft Operational Programme was submitted to regional partners for a twelve week consultation. In light of observations made, the document was revised at the end of the consultation period. Once submitted to the Commission there will be a four months period of appraisal. It is hoped to launch the Programme in autumn 2007. Expenditure will be eligible from 1 January 2007. 1.3 Strategic Direction of the ERDF Programme The vision for the West Midlands ERDF Programme is to achieve a significant increase in the productivity of the business base in the West Midlands; to reduce unemployment and inequalities; and ensure that the region's economic growth is achieved in a sustainable manner, which aids its transformation towards both a low-carbon and high-value added economy. Specifically, the programme seeks to assist 22,441 businesses to improve their performance, create 10,519 jobs and 2,495 new businesses and support the reduction of regional carbon emissions. In addition 3,288 businesses within the region will engage in new collaborations with the UK knowledge base as part of the Programme’s determination to upgrade the regional economy. For a traditional manufacturing region adapting to a fast-changing world, these issues are crucial to enable the West Midlands to compete more effectively within an increasingly globalised economy. 2 1.3.1 Underlying Economic Conditions Despite significant economic growth over the past decade and an important recovery in employment levels, it is clear from the socio-economic analysis that the West Midlands remains confronted by a series of major challenges. The SWOT analysis highlights the poor levels of educational and skills attainment; the relatively low innovation rates; and the ecological challenges and the continued weak GVA growth rates compared to other UK regions.
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