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ERDF North East Operational Programme

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ERDF North East Operational Programme Government Office for the North East Competitiveness and Employment ERDF Operational Programme Document 2007-2013 Modification Proposal July 2011 (SFC Version 6 01.08.11) December 2007 1 North East England ERDF Operational Programme 2007-2013 1 INTRODUCTION & EXECUTIVE SUMMARY ......................................4 2 SUMMARY SOCIO-ECONOMIC ANALYSIS.......................................7 2.1 General..........................................................................................7 2.2 Summary of Eligible Area – Strengths and Challenges .................7 2.3 Employment.................................................................................10 2.4 Competitiveness ..........................................................................12 2.5 Enterprise ....................................................................................15 2.6 Innovation ....................................................................................16 2.7 Investment ...................................................................................18 2.8 Skills ............................................................................................20 2.9 Environment ................................................................................21 2.10 Equality and Diversity ..................................................................22 2.11 Spatial Development.................................................................... 23 2.12 Additional section July 2011-07-11 3 DERIVATION OF THE PROGRAMME STRATEGY ..........................32 3.1 General........................................................................................32 3.2 Strategic and Policy Contexts...........................................................32 3.3 The SWOT Analysis ....................................................................36 3.4 Focusing Down on Programme Priorities ....................................38 3.5 Practical Considerations in Strategic Focus ................................39 3.6 Towards Conclusions on Programme Structure .......................... 40 3.7 Additional section July 2011 4 STRATEGY FOR THE PROGRAMME...............................................49 4.1 High Level Vision for the Programme ..........................................49 4.2 Strategy for the North East of England Regional Competitiveness ERDF OP 2007-2013 .............................................................................50 4.3 The Programme Priorities............................................................59 4.4 Priority One: Enhancing and Exploiting Innovation......................60 4.5 Priority Two: Business Growth and Enterprise ............................73 4.6 Priority Three: Technical Assistance............................................87 4.7 Conclusions on Added Value from ERDF Support ......................88 5 CROSS-CUTTING THEMES ..............................................................90 5.1 Introduction..................................................................................90 5.2 Environmental Sustainability........................................................90 5.3 Equality and Diversity ..................................................................97 5.4 Addressing Spatial Disparities in Economic Inclusion................102 6 CO-ORDINATION BETWEEN FUNDS ............................................107 6.1 Introduction................................................................................107 6.2 European Social Fund ...............................................................107 6.3 European Agricultural Fund for Rural Development (EAFRD)...107 6.4 European Fisheries Fund ..........................................................109 6.5 EU RTD Programmes.....................................................................109 7 IMPLEMENTING PROVISIONS .......................................................114 7.1 REGULATORY CONTEXT.............................................................116 7.2 MANAGING AUTHORITY, CERTIFYING AUTHORITY, AUDIT AUTHORITY, AND INTERMEDIATE BODIES .....................................116 7.3. PARTNERSHIP AND COMMITTEE STRUCTURE ...................122 7.4. MANAGEMENT AND CONTROL SYSTEM .............................123 7.5. COMPUTERISED EXCHANGE OF DATA ...................................131 7.6. MONITORING ARRANGEMENTS AND SYSTEMS..................131 7.7. EVALUATION ARRANGEMENTS AND SYSTEMS.....................132 7.8. FINANCIAL IMPLEMENTATION..................................................133 7.9. FINANCIAL FLOWS AND PAYMENTS........................................134 December 2007 Final 2 North East England ERDF Operational Programme 2007-2013 7.10. FINANCIAL MANAGEMENT AND CONTROL ARRANGEMENTS .............................................................................................................137 7.11 INFORMATION AND PUBLICITY ................................................139 7.12. SUPPLEMENTARY OBJECTIVES.............................................140 7.13. USE OF RESERVES..................................................................142 7.14. FINANCIAL ENGINEERING.......................................................142 7.15. STATE AID.................................................................................142 8 FINANCIAL TABLES, including CATEGORISATION....................144 9. EXECUTIVE SUMMARY OF EX ANTE EVALUATION ...................150 10. SUMMARY OF STRATEGIC ENVIRONMENTAL ASSESSMENT 152 10.1 Background ...............................................................................152 10.2 Integrating Environmental Considerations .................................153 10.3 The OP and Reasonable Alternatives........................................161 10.4 Monitoring..................................................................................164 10.5 Additional text July 2011............................................................................. 11 THE POLICY CONTEXT...............................................................166 11.1 Consistency with the EU and UK Policy Context..........................166 11.2 The Northern Way ........................................................................172 11.3 The Regional Spatial Strategy......................................................173 11.4 City Regions ................................................................................. 174 11.5 Additional text update on policy context post 2010........................................ Annex: Performance Indicators, Definitions and Monitoring Guidance .................................................................................................................180 Annex: Detailed RDA structure and financial flow chart....................188 December 2007 Final 3 North East England ERDF Operational Programme 2007-2013 1 INTRODUCTION & EXECUTIVE SUMMARY This is the North East of England Regional Competitiveness and Employment ERDF Programme 2007-13. It has been prepared for Government Office for the North East and One NorthEast with steering input from a Project Board comprising representatives of the regional Partnership. The Programme will bring some £250m of ERDF support to the region. The Programme Document has developed from a systematic process which, prior to deciding on the Strategy has considered range of factors, with particular attention being paid to: • the socio-economic situation in the North East of England and the strategic issues that flow from this. • the policy context and practical issues that suggest where the ERDF resource can be most effectively deployed. • the flow of funds in the region and trends in resource use. The shape and content of the Programme has also been influenced by a consultation process which ran from 9 January to 2 April 2007. In addition, the comments of consultants carrying out an ex ante evaluation and a Strategic Environmental Assessment have been taken into account. The context for this North East ERDF Programme is very different to the context for past programme periods; due in particular to the relative strength of the UK economy within the EU, and the enlargement of the EU to the East. It is important to note that, compared to the large scale European programmes of the past, the new Programme allocates a relatively limited ERDF resource for the North East. This resource is being deployed against the background of particular policy agreements reached at European level, as well as the regulatory framework for European funding. It is neither feasible nor practical for ERDF to fund as broad a range of activity as it has in the past. The regional context has also changed, with economic priorities now clearly outlined in the Regional Economic Strategy (RES). Accordingly, it is proposed that ERDF resources be aligned with a limited number of the RES priorities, where the characteristics of the funding will maximise its regional benefit. This is not to say that other agendas will not be resourced. The targeting of ERDF will be taken into account within the RES Action Plan process which will consider the resource needs of all RES priorities. Within this context, a vision for the Programme has been developed: The North East Competitiveness OP will by 2015 have made the region a more cohesive, ambitious and attractive place in which to invest and work based on the creation of a modern, innovation focused economy that is well placed to exploit the economic and social opportunities associated, in particular, with renewable energies and technologies
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