Helping to shape EU Structural Funds 2014+North East Social Enterprise PartnershipRory Sherwood-Parkin, Tees Valley Unlimited

Topics1. Who are Tees Valley Unlimited? 2. The Tees Valley economy3. Key Challenges4. Positive News5. Major Opportunities6. EU Funding 2014 +7. Smart Specialisation8. LEP Priorities9. 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

• 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

• 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.....

Current Situation

• 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

3. Key Challenges

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 NewsOver 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• 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:• Developed set of possible future development scenarios;• Examples among Tees Valley key sectors which fit Smart Specialisation

profile; • 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;

◼ 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. Timetable1. Develop City Deal ask and response to Heseltine Review 2. Assess outcome of CSR on Wed (guidance, allocation)3. Second phase of smart specialisation work – Aug 2013 4. Assisted Areas Map consultation – Aug 2013 5. Develop SIF Draft Strategy – Sept 2013 6. Develop final strategy – Jan 2014

Throughout = consult key partners