Transcript Slide 1

Helping to shape EU Structural Funds 2014+
North East Social Enterprise Partnership
Rory Sherwood-Parkin, Tees Valley Unlimited
Topics
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Who are Tees Valley Unlimited?
The Tees Valley economy
Key Challenges
Positive News
Major Opportunities
EU Funding 2014 +
Smart Specialisation
LEP Priorities
Timetable
1. Who are Tees Valley Unlimited?
• Local Enterprise Partnership (LEP) funded by 5 councils
• Private and public sector LEP striving to deliver jobs
and economic growth across Tees Valley
• Private sector led Leadership Board
• Inward investment, business engagement, economic
intelligence, lobbying government, skills, promotion,
major strategic projects......
Our role
Strategy and Intelligence work monitors Tees Valley trends,
demographics and economic performance which helps
identify and shape local strategies, transport planning and
issues to be addressed to support both current and future
employers.
Engagement with the business community and promoting
Tees Valley as an area to invest, all enable Tees Valley
Unlimited to secure streamlined Central Government funding
and attract significant private sector investment.
Progress
• Enterprise Zone: 12 sites, 8 investments worth £384m
• Supply chain work in key sectors: automotive and oil and gas supply
chain events, CORE offshore wind status, Contract Catalyst bond
guarantee scheme
• Business Engagement: Tees Valley Business Summit, 750 business
engagements in 2012-2013
• Investment: 19 RGF bids cleared dd, £42m levering in £270m. £26m
in ERDF, £28.5m private investment
• Skills: Tees Valley Skills Portal, including sector videos
• Transport infrastructure: James Cook, local majors
• Policy & Strategy: Statement of Ambition, SAPs, Business Plan
2. The Tees Valley economy
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Tees Valley is an example of innovation and reinvention
Coal-mining
Steel-making
Ship-building
North Sea Oil Production
Processing
Demise of heavy, smokestack industries and loss of ICI
Current Situation
• Tees Valley contributes £10 billion to the UK economy
• Over 30% of the UK process industries located in Tees
Valley, supporting 26,000 direct and indirect jobs
• UK’s largest exporting port at Hartlepool & Teesport
• Significant engineering base supplying projects around the
world (renewable energy, energy from waste)
• Growing service sector base
• Growing digital and creative sector (Digital City)
• More to do.....
3. Key Challenges
• Unemployment: Some of the highest rates in the UK: 6.8%
(3.7% nationally), youth unemployment at 13.2%
• Access to finance: Local businesses struggling to access
capital / reluctant to use non-bank finance
• Public sector austerity: Public sector job losses
• Private sector: Private sector employment rates amongst the
lowest in the UK
• Enterprise: Start-up rates comparatively low
• Branch plant economy: Reliant on decisions taken elsewhere
4. Positive News
• Export led growth: continued success of Tees Valley
engineering firms (Wilton Group, CTC, TAG, AMEC)
• Private sector growth: Huntsman, SSI, Mitsubishi, Lotte,
Hitachi, Fujifilm, Axa, Darchem
• Infrastructure: Teesport container terminal expansion, Able,
AV Dawson TRIP, CPI
• Renewable Energy: Offshore wind (PD Ports, Heerema), CCS
(Progressive), Bioindustries (Ineos, Air Products)
• Reputation within Government: RGF success, UKTI MOU,
Enterprise Zone, Local Enterprise Partnership
Positive News
Over 8,000 net private sector jobs created since Jan 2011:
5. Major Opportunities
• Government policy: rebalance from public sector dependence
to private sector growth. Emphasis on manufacturing/export
businesses. City Deal
• Let’s Grow; Funding for local business
• 12 Enterprise Zone sites; attractive for small businesses and
large capital investment, rate retention
• UKTI/BIS relationship; recognise the value of Tees Valley to
UK Government
• Sector Plans / Supply Chain Improvements; new industries,
export markets, apprenticeships
• European funding 2014 + .....
6. EU Funding 2014 + Preparations
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Initial discussions with partners held during March/April
Established ‘Part A’ of TVU Investment Panel meetings to
discuss matters relating to EU Structural Funds;
Submitted response to Preliminary Guidance on S&IFS;
Submitted responses to State Aid consultations;
High level initial work into mapping out economic context,
vision and evidence gaps for the Thematic Priorities;
Smart Specialisation research Phases 1 & 2.
7. Smart Specialisation
A phased approach: TVU appointed Fraser Associates to look
at smart, sustainable and inclusive growth in the Tees Valley
via a phased approach
Phase 1 – Building an evidence base:
◼ RIS3 Guidance used as a framework for compiling evidence;
analysis of the regional context, existing strengths and
potential for innovation in the Tees Valley; ownership building
and governance through a stakeholder group; and potential
development scenarios for the key sectors and scope for
innovation.
Initial findings:
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Developed set of possible future development scenarios;
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Examples among Tees Valley key sectors which fit Smart
Specialisation profile;
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Existing “innovation system” along sectoral lines.
Phase 2 – Strategy development:
Partner engagement, best practice research, identification of
investment priorities, action plan, provisional monitoring and
evaluation framework;
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Use to help inform the SIF Strategy
8. LEP priorities
• Innovation; commercialisation in key sectors and engagement with
CPI/Universities to increase spin outs
• SME competitiveness; exports and supply chain development to
increase/diversify base – more private sector jobs
• Employment, Skills & Social Inclusion: Youth unemployment,
apprenticeships, rural economy
• Low carbon economy & energy efficiency; offshore wind, subsea,
energy from waste, CCS
• ICT: Build on growing cluster of digital firms, e.g. DCB
• Sustainable Transport: key pinchpoints and infrastructure, e.g.
Teesport, ECML, DTVA
9. Timetable
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Develop City Deal ask and response to Heseltine Review
Assess outcome of CSR on Wed (guidance, allocation)
Second phase of smart specialisation work – Aug 2013
Assisted Areas Map consultation – Aug 2013
Develop SIF Draft Strategy – Sept 2013
Develop final strategy – Jan 2014
Throughout = consult key partners