West Midlands Objective 2 Programme 20002006

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West Midlands Objective 2 Programme 2000-2006

• Vicki Hone Transational Adviser
• Government Office for the
• West Midlands
• October 2005

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• Sub-regions
• The West Midlands region is made up of five
  sub-regions
• Birmingham and Solihull
• The Black Country
• Coventry and Warwickshire
• Herefordshire, Worcestershire and Shropshire
• Staffordshire

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The West Midlands
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The West Midlands
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Regional Socio-Economic Position of the West
Midlands

• Population -
• WM population is 5.3 million 9.0 of UK (58.8
  million).
• West Midlands metropolitan area second most
  densely populated in UK.
• Gross Domestic Product -
• UK GDP is approximately 800 billions per annum.
  WM share is 8.5.
• WM GDP per head is less than 92 of the UK and
  well below European averages.
• Out of a broad share of 8-10 of the UK economy
  overall, WM carries 12 of the UKs manufacturing
  GDP.

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• Regional Socio-Economic Position of the West
  Midlands
• Employment -
• Manufacturing predominates 22.5 of all
  employment in the West Midlands, compared to GB
  average of 15.7. Financial Business Services
  next largest 16.1 (GB 12.7).
• Service sector correspondingly lower only 68.3
  of employment in the WM against 74.4 across the
  GB.
• Manufacturing Productivity -
• GVA per employee in WM is only 88 of the UK
  average, and the UK as a whole lags wellbehind
  its competitors (USA is 14 more productive than
  the UK).

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• Regional Socio-Economic Position of the West
  Midlands
• Unemployment -
• West Midlands unemployment is 2.9 -91,000
  people.
• Wide variations across the region. 5.1 in
  Birmingham and 1.0 in Stratford on Avon.
• Wages -
• Average gross weekly wages (male) are 8.5 below
  the GB average. For women the figures are 8
  below the GB average.

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Overview of the West Midlands Economy

• Economy of the West Midlands has lagged behind
  that of the UK
• Region has continued to depend on manufacturing
• Manufacturing industry has a high proportion of
  traditional, low value added sectors and low
  proportion of new, high technology, high value
  added sectors
• Objective 2 area has a much higher incidence of
  unemployment
• The WM workforce has relatively poor levels of
  skills and qualifications, which inhibits growth
  and competitiveness
• The region needs to grow, diversify and modernise
  its high growth sectors
• The bedrock sectors need to diversify their
  market-base and modernise their processes to
  improve competitiveness and increase productivity
• Need to build a high skill, innovative and
  adaptable workforce

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• West Midlands Objective 2 Programme 2000-2006
• Programme strategy is based on and is
  complementary to the West Midlands Economic
  Strategy (WMES), developed by Advantage West
  Midlands, the Regional Development Agency. The 4
  pillars of the WMES are
• Developing a Diverse and Dynamic Business Base
• Creating the Conditions for Growth
• Regenerating Communities
• Creating a Learning and Skilful Region

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Strategic Priorities of the 2000-2006 Objective 2
Programme1 - Developing a Diverse and Dynamic
Business Base2 - Creating the Conditions for
Employment Growth3 - Regenerating
CommunitiesEuropean Structural Funds available
under the Objective 2 Programme ERDF
350.09mTransitional ERDF 80.11m Objective 2
ESF 87.53m
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West Midlands Objective 3 Programme

• Strategic Priorities of the West Midlands
  Objective 3 Programme- Creating a Learning and
  Skilful region
• European Structural Funds available
• ESF 350m for WM region
• The programme is managed nationally

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• Coverage of the 2000-2006 Objective 2 Programme
• 2.413m people in Objective 2 area (Nearly half
  the regions population)
• 1.108m eligible for transitional ERDF support
• (Those areas which were part of the previous
  Objective 2 and 5b Programmes but which do not
  qualify under the new Objective 2 eligibility
  criteria, qualify for transitional status)

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• Overview of Monitoring Indicators
• The Programme needs to achieve a range of
  targets and all projects have to contribute to
  these targets
• Results
• Over 1,800 new businesses created
• Over 25,000 businesses improved
• Some 18,000 people gaining qualifications
• Impacts
• Nearly 28,000 net jobs created
• Over 16,000 net jobs safeguarded
• More than 1.9 billion net value added to the
  regions economy

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Priority 1 Developing a Diverse and Dynamic
Business Base Increase the competitiveness of
SMEs by maintaining employment levels in
traditional sectors, while diversifying the
economy through the development of new companies
and employment in sectors with growth potential

• Objective 2 ERDF 149.09m
• Objective 2 Transitional 41.76m
• Objective 2 ESF 69.30m

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Sub-priority 1a (7 Measures) Supporting SMEs in
Established Sectors Automotive, Engineering
and Ceramics Sub-priority 1b (5 Measures)
Supporting SMEs in High Growth Sectors
Creative Industries, Engineering Design, Food
Drink, Medical Technology, Tourism
Leisure Sub-priority 1c (2 Measures)
Underpinning the Competitiveness of SMEs
provision of support which helps increase access
to finance and the exploitation of e-commerce
opportunities
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• Priority 2
• Creating the Conditions for Employment Growth
• Priority 2 will create the conditions to enable
  the region to realise its full potential and will
  assist in the other objectives of securing
  employment for the most disadvantaged communities
  in the region.
• Four measures in this priority seek to create
  jobs, remove infrastructure barriers to
  employment growth, improve transport connections
  to areas of job growth and increase IT capacity
  in relation to e-commerce.
• Objective 2 ERDF 125.94m
• Transitional ERDF 26.05m
• Objective 2 ESF Nil

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Priority 3 Regenerating Communities Priority 3
will concentrate on areas where there is a
combination of problems which creates an area of
exclusion (unemployment, poor skills, low
incomes, poor housing, high crime). The priority
will support the complete economic development of
the region to benefit the people who live and
work there.

• Objective 2 ERDF 71.71m
• Transitional ERDF 11.68m
• Objective 2 ESF 17.44m

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• The Horizontal Themes
• Innovation
• Environmental Sustainability
• Equality of Opportunity

These Themes underpin the whole programme, and
for the first time have indicators and targets as
part of the evaluation framework. Each Theme has
a number of Key Issues. Actions to address the
Key Issues will be delivered within the Measures
of the Priorities.
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• Management
• Programme Monitoring Committee responsible for
  driving the Programme, looking at strategic fit,
  and directing work on the Programme. Also has
  formal duties set by the Commission. Key focus
  is on Programme direction and strategic review
• Strategy Operations Group draws together the
  Priority Working Groups and Sub-Regional Groups.
  Acts as executive group for PMC, by drawing
  together management information and views from
  SRGs and PWGs to make management recommendations
  to PMC. Looks at strategy, progress, ensure
  synergy with other key funding streams, encourage
  bids where there is an outstanding need.

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• Management continued
• Priority Working Groups chaired and convened by
  Advantage West Midlands. Each group will drive
  and deliver their priority from the SPD.
• Sub-Regional Groups drive forward the Programme
  in the sub-regions. Provide an overview of
  progress in their region, encourage partners to
  develop bids where gaps in provision are
  identified, monitoring strategic packages and
  needy neighbourhood activities. Form
  partnerships to ensure synergy between Structural
  Funds and other monies.

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Key Partners

• Government Office for the (Region)
• Regional Development Agency
• Environmental Sector
• Local Authorities
• Voluntary Sector
• Private Sector
• JobCentre Plus
• Central Government Departments
• Higher Education/Further Education
• Regional Learning and Skills Council
• Small Business Service
• National Farmers Union
• European Commission
• Trades Union Congress

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• Management continued
• European Secretariat
• maintenance of Management Information System and
  production of reports and information
• evaluation of Programme performance
• production of Annual Implementation Reports for
  the Commission
• administration of bidding rounds publicity,
  providing interactive application forms, loading
  applications on to database
• committee support for PMC, SOG and internal
  meetings, discussion of policy issues and
  maintaining strategic focus of Programme
• publicity activities internet site, publicity
  and marketing events

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• Management continued
• European Secretariat (2)
• finance work processing payment of ERDF and ESF
  claims, managing and monitoring receipts
• process applications for Objective 3 funds,
  provide support and guidance to applicants,
  administer budget
• appraise the way applications address the 3
  Horizontal Themes, work with partners to increase
  understanding of the themes
• to manage the Objective 2 and Objective 3
  Structural Funds Programmes in the West Midlands
  to maximise their effectiveness

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• Management continued
• Contract Delivery team
• appraises applications for Objective 2 funding
• works with Sub-Regional Groups, and applicants
  to develop applications and ensure strategic fit
• monitors progress of approved applications

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• Issues
• Capacity to develop deliver
• Process - protracted
• N2 Spend use it or lose it
• Image neutral often negative press

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More information

• Single Programming Document
• Programme Complement
• available on the Government Office West Midlands
  European Structural Funds website
• www.westmidlandsworkingtogether.org.uk