Draft strategies were submitted last month from LEPs to receive £5 billion of European structural funding, to be allocated between 2014 to 2020. A BIS spokesperson said that funding would only be withheld on the basis of shortcomings in LEPs’ strategies in exceptional circumstances, however, Baxter warned that the funding package for England will need final confirmation from the European Parliament and Treasury and advised that the plans be strengthened in order to ensure their approval.
Whilst Baxter reported that the LEPs’ plans were strong in terms of their understanding of local economies and a range of public and private proposed match funding, she told Planning Resource that more detail of the financial instruments which would be set up using the funding was required. Financial arrangements proposed included venture capital funds, infrastructure investment funds and social investment bonds. The findings with respect to the shortcomings of the draft strategies will be fed back to LEPs.
Of the EU funding for LEP strategies, 21% is expected to be allocated to small business competitiveness, with 20% to skills development, 17% to employment programmes, 12% to social inclusion, 12% to innovation and 11% to low carbon programmes.
