Structural Funds in Focus 05 October 2006
Introduction
Welcome to the first issue of a regular newsletter, updating partners about current developments in the preparation for the 2007-13 Structural Funds programming period. The newsletter is designed to inform partners about the planning and state of play for the new programmes and will be updated regularly. If you have any other queries about planning for the 2007-13 Structural Funds programmes, please send an e-mail to: europeanstructuralfunds@scotland.gsi.gov.uk.
This issue covers the following topics:
plans for Scottish consultation on the new programmes for 2007-13
latest news on Scotland's share of the Competitiveness Objective funding
preparations for 'gap' funding between the current and future programmes.
Future Structural Funds programmes consultation to start soon
With the completion of the UK consultation on the National Strategic Reference Framework (NSRF), plans are now well underway for the launch of a public consultation on the draft Scottish programmes for the 2007-13 Structural Funds. The consultation is expected to start on Tuesday, 24 October and last until Monday, 8 January. Copies of the consultation documents - including the draft Operational Programmes - will be published on the ESFD website. As part of the consultation, there will be two public launch events - details will be announced soon on this website.
The consultation will cover four Operational Programmes:
- a European Regional Development Fund Programme for the Highlands & Islands under the Convergence Objective;
- the European Social Fund Programme document for the Highlands & Islands under the Convergence Objective;
- a single European Regional Development Fund Programme for Lowlands & Uplands Scotland under the Competitiveness Objective; and
- a European Social Fund Programme document for Lowlands & Uplands Scotland under the Competitiveness Objective.
It will focus on several issues:
- the socio-economic analyses and policy contexts setting the framework for action under each Programme;
- the overall vision, objectives and specific priority areas for action for each Programme;
- funding shares between priorities; and
- delivery arrangements.
We will also be consulting on the Strategic Environmental Assessment (SEA) of the ERDF Programmes for both Highlands & Islands and Lowlands & Uplands Scotland. The SEAs, which are being undertaken by independent environmental consultants, has been ongoing since the start of the year in parallel with the development of our proposals. The SEAs will culminate in the production of environmental reports which will assess the potential environmental effects of the ERDF Programmes and identify, described and evaluate reasonable alternatives. Stakeholders will be invited to submit responses on the environmental reports to the Executive.
Once the consultation has finished, the Executive will publish its Response and revise the Operational Programmes accordingly for submission to, and negotiation with, the European Commission in February 2007.
Update on allocation of Competitiveness Objective funding
Funding for future programmes in Scotland has only been partially determined. In the Convergence Objective parts of the country - the Highlands & Islands - the European Regional Development Fund (ERDF) and European Social Fund (ESF) programmes will receive a total of €158 million (c.£105 million) over 2007-13.
The ERDF and ESF figures for the Competitiveness Objective parts of Scotland - ie. Lowlands & Uplands Scotland - has yet to be agreed at UK level. The UK has been awarded a 'pot' of funding for all Competitiveness Objective regions in the UK. The DTI is responsible for coordinating an agreed allocation of the funding across the UK. The issue of how to allocate the funding was raised as part of the NSRF consultation. The DTI is currently analysing the responses to the consultation and working with relevant Whitehall Departments and Devolved Administrations on a way of allocating the funding across the UK in an equitable and transparent fashion. It has been agreed that funding would be subject to two separate formulas - one for ERDF, one for ESF - and determine figures at a programme level. The allocations are expected to be agreed and published as part of the final version of the National Strategic Reference Framework in mid-October.
Arrangements for 'gap' funding
It is now clear that Operational Programmes in Scotland, like those in other parts of the EU and the UK, will not be approved and running by the start of 2007. Although every effort has been made by the Executive to try and achieve this, it has proved to be a challenging task, not least as a result of the delay in completion of the UK-wide consultation on the NSRF. A late start to 2007-13 Programmes presents a number of difficulties for some Structural Funds partners in Scotland, especially those responsible for projects dealing with vulnerable client groups.
To minimise the disruption of a late start to Programmes, the Executive will set out arrangements for providing 'gap' funding to projects supporting these vulnerable groups to mitigate delays in future programme decisions. This will entail some financial risk to the Executive, as the Programmes will not have been formally approved by the Commission by this stage. The intention is to operate a limited 'shadow round' soon after the conclusion of the consultation process in Priority 1 of the two ESF programmes in January 2007. The aim will be to make awards by Easter. The round will be operated using the eligibility criteria for the new programmes, which will be published soon after the close of the consultation. Further details on the gap funding arrangements will be publicised on the ESFD website by the end of October.
It is important to note that shadow round will provide gap funding using resources available for the 2007-13 Programmes. However, it cannot be a substitute for the need for existing projects to plan for and implement exit strategies with the conclusion of the 2000-06 programmes.
European Structural Funds Division
Scottish Executive