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ANNEX 3
LOCAL DEVELOPMENT STRATEGY

1.1 This should be completed by 31 October, using Section B of the template ( Annex 1).

1.2 LAGs will be approved for LEADER funding once the Scottish Executive is content that the Local Development Strategy and Business Plan satisfy the selection criteria, comply with the Commission's three main priority themes, and demonstrate that they will deliver against the five key desired SRDP priorities. They must also reflect the priorities established by the RPAC and the priorities identified in the Strategic Plan for Scotland as a whole.

1.3 Local developmental strategies will adopt a wide and inclusive approach, promoting

interaction between the local rural population, socio-economic sectors, community groups and the environment, and will be produced following a review of the LAG area's assets and following consultation with the community as a whole. The strategy is expected to focus on the CPP Community Plan strategies and reflect those parts of the Plan which are relevant to rural areas.

1.4 Each Local Development Strategy should be based on the conclusions of an evidence based exercise. This evidence base must cover, as a minimum, the following points:

• description of rural development issues and action taken to alleviate problems
• what funding has been used to develop rural areas - how much
• what has been the outcome and what issues remain
• details of consultation with the wider rural public

1.5 Existing Leader+ groups should also provide:

• description of previous Leader+ projects that have been implemented and their outcomes
• description of the structure and working methods of the Local Action Group and its activities (in order to demonstrate the bottom-up approach)
• total collective contribution made to the achievement of the goals of the Local Development Strategy under Leader+

1.6 The potential LAG partnership will select one or two of the LEADER themes noted at 9.1 below in this annex and develop their local strategy. The strategy will then be assessed against the criteria set out below.

2 Sustainability

2.1 The Local Development Strategy should demonstrate how it will contribute to the sustainable development of the region in environmental, economic and socio-cultural terms. The increased requirements for an integrated approach to the environment, and compliance with the principles of sustainable development, should be reflected and demonstrated. Every Local Development Strategy must also be compliant with the Natura 2000 programme if relevant.

2.2 Potential LAGs should demonstrate how they have taken account of the environmental conditions of their area and of how they can enhance the condition of and maximise local benefits from the environment.

3 Co-operation between different rural areas

3.1 Support and funding for trans-regional or trans-national collaboration between Local Action Groups or between Local Action Groups and comparable regional partnerships is a core element of the LEADER programme.

3.2 It is recognised that there will be different levels of experience with and knowledge about co-operation projects and that some groups will be keen to get involved right away while others will wish to build their foundations first.

3.3 If possible the Local Development Strategy should set out the areas in which collaboration is proposed, and where the Local Action Groups (or comparable regional partnerships) would be involved. The aim of collaboration may be the attainment of a critical mass to develop a particular project, or a wish to achieve complementarity between differing bodies, or a combination of both.

3.4 Where it is not possible to predetermine areas of collaboration a commitment should be given by the LAG partnerships to undertake some form of co-operation during the programme period. The Scottish Executive is required by the European Regulation to approve all projects not included in the Strategy or the Business Plan.

4 Partnership

4.1 Before a Service Level Agreement can be signed, and money paid out, the Scottish Executive requires a description of all the organisations involved in the management of the LAG. The roles of each organisation should be outlined and an explanation given of the status ( i.e. Chair, funder) of the lead organisation in the partnership. Their roles in the management of the LAG should also be noted, such as employing staff, providing secretariat support and managing the budget. It would also be helpful to learn the systems and processes for managing the LAG and paying LEADER functions. It is important to show true partnership and not domination by a few organisations. Potential LAGs should also note where possible which organisations may be involved with project funding and delivery though not involved with the management of the LAG.

5 Methodology

5.1 An outline of the approach behind the strategy eg working with community groups and/or sectoral groups. Potential LAGs should demonstrate how relevant sectors of the community will be actively engaged in the planning, management and delivery of the strategy.

6 Innovation

6.1 An explanation of how the strategy is innovative in relation to process and projects. This involves actions taking calculated risks, managing change, and exploiting novel ideas and introducing good practice for other areas.

7 Analysis of the economic and social position of the rural area

7.1 Detailed analysis that will identify opportunities for the area. The analysis will form the basis for each activity or project addressing an opportunity in an innovative way. This analysis will take the form of an evidence based analysis of the rural area selected. The analysis will list the resources and assets available and how these can be used to benefit the development of the area. The analysis will also note the various blocks, barriers and causal agents affecting the development of the area and how these might be overcome.

8 Target Groups

8.1 How potential LAGs plan to incorporate equal opportunities in the broadest sense as a horizontal action within their proposals. Women and young people have been highlighted as two groups who require specific targeting. Additional groups include micro and small businesses*, and the under employed. Potential LAGs should identify positive action requirements relative to disadvantaged and excluded groups, and highlight any other target groups relevant to their LAG area.

* The category SMEs is comprised of micro, small and medium sized enterprises. The European Commission defines these as follows:

• micro-enterprises employ fewer than 10 persons and have an annual turnover not exceeding 2 million euro, and/or an annual balance sheet total not exceeding 2 million euro"
• small businesses are enterprises which employ fewer than 50 persons and which have an annual turnover not exceeding 10 million euro, and/or an annual balance sheet total not exceeding 10 million euro"
• medium sized enterprises employ fewer than 250 persons and have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro

9 Themes and Priorities

Further advice on actions under Leader is available at Annex 3

9.1 Potential LAGs must indicate how the proposed Local Development Strategy relates to the theme(s) selected from the five Scottish LEADER themes:

• revitalising communities
• rural community capacity
• new markets and products
• progressive rural economy
• conservation of the rural environment

The strategy will also demonstrate how it will deliver the regional, SRDP, and EU priorities. The following diagram might help explain the hierarchy of priorities and how they link through.

9.2 The regional priorities will be determined by the RPACs and reviewed annually. They should inform LAGs in the selection of projects but need not be directly reflected in the Local Development Strategy. Once the regional priorities are available potential LAGs might like to consider what the priorities mean to their local needs and requirements and their strategic plans.

9.3 The strategy will also be expected to show delivery against the main Axis IV outcome of "Innovative governance and rural capacity building" . This outcome seeks an innovative approach through Leader to remove the blockages and barriers preventing the development of rural areas, and to build confidence, knowledge and ability in rural areas for communities to assume the role of taking development of their area into their own hands. Below is a link to the Rural Development Regulation. The new Scotland Rural Development Programme will soon be posted on the Executive website. www.scotland.gov.uk/Topics/Rural/RDR/RDR

9.4 The analysis of the opportunities in the area will be structured around any one or all of the three European themes. Potential LAGs must explain how activities within LEADER complement each other, other rural measures and demonstrate that the development strategy will be based on an integrated approach rather than a collection of projects or combination of sectoral measures, which will deliver the desired outcomes. Strategies will be expected to reflect those parts of the CPP Community Plan(s) which cover rural areas.

10 Rationalisation

10.1 Potential beneficiaries should explain whether there is any scope for rationalisation within their partnership working, with the range of organisations providing a service in the geographical area, and detail how they will work with other organisations and the potential for co-operation in the management and delivery of LEADER and the SRDP.

11 Joint Projects

11.1 The potential exists for the LAG to work jointly with other groups within Scotland, across the United Kingdom, and throughout the European Union. Indications of joint projects should be outlined and partners listed where such information is available. It is recognised that new groups may take time to become established before involving themselves with joint project delivery.

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