News
Convergence Update
28.07.10
Context
The UK is in the midst of a seismic re-alignment of public spending priorities and budgets – the £6.2bn in-year cuts announced in May, the June Emergency Budget and the Comprehensive Spending Review that will happen in October, when much of the detail will be revealed.
These changes in Government policy and spending are likely to affect the shape and mechanisms for the implementation of Convergence but the opportunities and the mission of the two programmes remain undiminished.
Where are we with ERDF Convergence?
- The ERDF Convergence programme continues;
- The RDAs will continue to administer the ERDF programmes until new arrangements are in place;
- The existing freeze on the use of RDA ‘single pot’ as match for new investments from March 2011 will continue;
- There will be close scrutiny of the use of all public sector match funding;
- There will be greater central scrutiny on the way ERDF is spent;
- There is no freeze on the use of private sector match.
The South West RDA is in discussion with the Departments for Communities and Local Government (CLG) and Business, Innovation and Skills (BIS) about the transition of the ERDF Convergence Secretariat arrangements to new structures.
Where are we with ESF Convergence?
Jobcentre Plus / the Department for Work and Pensions (DWP) are developing the details of the Work Programme and the role of ESF in tackling worklessness, and the Department for Business Innovation and Skills (BIS) / Skills Funding Agency are developing the national skills development strategy and the role of ESF in up-skilling the workforce.
It will be vital to ensure that the unique scope and intensity of the ESF Convergence added value opportunities are both bespoke / relevant to the local economy and properly reflected in the nationally-led procurement and delivery mechanisms of both DWP and BIS. In the meantime delivery continues with existing ESF Convergence investments.
As part of the Government’s commitment to localism and decentralisation it has announced its intention in principle to abolish Government Offices. Individual Government departments, including DWP as the Managing Authority for ESF, will reflect on their needs for sub-national functions as part of the Comprehensive Spending Review in October.
Background
The ERDF and ESF Convergence programmes, that run until 2013 for commitment and 2015 in terms of spend, present Cornwall and the Isles of Scilly with an exciting opportunity to continue its journey of economic renaissance.
Investment to date has included:
- The Wave Hub
- Peninsula Research Institute for Marine Renewable Energy (PRIMaRE)
- A spectrum of business support designed with the private sector
- The best performing Jobcentre Plus / DWP employment programme in the country.
The delivery of these and a host of other investments continues apace – for further details visit the Convergence investments pages.
