Project and programme funding
Government is introducing strong financial incentives to support growth. Local authority LEP members may wish to pool or align incentive revenue streams in support of growth objectives. LEPs will also wish to consider how they can obtain the best value for money by leveraging in private sector investment.
Please find information on potential sources of funding below.
European Regional Development Fund
What is the funding for?
ERDF can be used to support a wide range of economic development programmes with a focus on building sustainable communities through sustainable development, production and consumption, developing an innovation and knowledge-based economy, stimulating enterprise and supporting successful businesses
Who can apply?
Firms in all the LEPs can apply, though those in Cornwall, South Yorkshire and Merseyside require less match-funding (see below).
How much money is available?
ERDF has around £1.5 billion available to applicants until 2013. Some of this has been committed, though there are significant funds still available.
How do they access it?
DCLG manages the fund. Applications are currently managed by RDAs, though this will shift to the ERDF Secretariat within CLG in July. The Secretariat will be co-located with RDAs and absorb their ERDF staff.
Is match-funding required?
Yes, either from public or private sources. ERDF can fund up to 75 per cent of a scheme in Cornwall, South Yorkshire and Merseyside; and 50 per cent elsewhere.
Further information
DCLG - European Regional Development Fund (ERDF)
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What is the funding for?
To support entry to employment for the most disadvantaged in society and to improve the level of skills of those already in employment. Funding is allocated via competitive tender. ESF cannot be pooled with any other funding streams.
Who can apply?
Organisations in all areas can apply via the tendering rounds announced by the Co-Financing Organisations.
How much money is available?
There is an ESF budget of £1.1bn from 2011-2013. Much of this has already been committed or will shortly be committed via planned tendering rounds.
How do they access it?
The ESF Managing Authority based in DWP manages the fund. Applications should be made to one of the programme’s Co-Financing organisations which include DWP, the Skills Funding Agency and the National Offender Management Service.
Is match-funding required?
Co-financing organisations provide the match funding; no further match-funding is required.
Further information
Department for Work and Pensions - About the European Social Fund
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JEREMIE Venture Capital Funds
What is the funding for?
Debt and equity financing for SMEs in certain parts of the north of England.
Who can apply?
Firms in LEPs in the North East, North West and Yorkshire regions.
How much money is available?
Around £400 million, though not clear how much remains.
How do they access it?
Business can apply to the fund managers. Private companies manage the funds in each region – The North West Fund, North East Finance and Finance Yorkshire.
Is match-funding required?
No.
Further information
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JESSICA Urban Development Funds
What is the funding for?
Loans or guarantees to finance urban development projects
Who can apply?
Firms in LEPs in the North West, East Midlands and London.
How much money is available?
Around £200 million, although significant variation across regions.
How do they access it?
Organisations can apply to the fund managers or contact local ERDF teams for information.
Is match-funding required?
No.
Further information
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Rural Development Programme for England
What is the funding for?
The Rural Development Programme for England (RDPE) aims to improve competitiveness in the agriculture and forestry sector; safeguard and enhance the rural environment; and foster competitive and sustainable rural businesses and thriving rural communities.
Who can apply?
Farmers, growers, foresters, land owners, rural businesses or other rural community organisations.
How much money is available?
A total of £3.7 billion is available for the 2007-13 programme period.
How do they access it?
RDPE-funded grants for economic and social projects are currently administered by the RDAs but management of the funds will be moving to Defra on 1 July 2011.
Natural England administers the RDPE-funded Environmental Stewardship Scheme and the Energy Crops Scheme.
The Forestry Commission administers the RDPE-funded English Woodland Grant Scheme.
Is match-funding required?
Public sector match funding is provided by Defra. Most types of investment grants also require a private sector contribution.
Further information
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What is the funding for?
Funding is not restricted, but the investment must generate private sector jobs and economic growth.
Who can apply?
Any private firm or public-private partnership (including LEPs) can apply, though bids from those areas of the country considered vulnerable to public sector cuts are more likely to receive funding.
How much money is available?
£1.4 billion over the Spending Review period (2010-2015).
How do they access it?
By applying to the RGF team in BIS. The first round has now closed and the second round launched on 12 April 2011 with a deadline of 12pm on 1 July 2011.
Round 2 is open to Programme Bids which define a clear strategy for a specific economic area. Where LEPs exist, they should, as leaders of local private sector growth, be in a good position to bring together programme bids for their area. We would encourage LEPs and bidder to work together when developing bids. Bidders should explain how their programme would align with their LEP’s priorities.
Is match-funding required?
The leveraging of private sector funds is a key criterion for successful bids.
Further information
BIS - Regional Growth Fund
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What is the funding for?
All business rates growth within the Enterprise Zone for a period of at least 25 years will be retained by the local area, to support the Partnership’s economic priorities and ensure that Enterprise Zone growth is reinvested locally
The uplift in business rates receipts as a result of the introduction of the Enterprise Zone will be used by the local enterprise partnership for key economic priorities, related to the zone itself or elsewhere within the local enterprise partnership’s boundaries
Who can apply?
Local enterprise partnerships, on behalf of all their partners, will be able to bid for an Enterprise Zone.
How much money is available?
Not clear, it will depend on the legislation which is expected in 2013.
How do they access it?
By April 2013, subject to the Government’s consideration of proposals from the Local Government Resource Review, new funding arrangements will be available to local authorities, allowing them to retain business rates.
Is match-funding required?
No.
Further information
Enterprise Zone Prospectus (PDF)
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Tax Increment Finance
What is the funding for?
Tax Increment Financing (TIF) enables borrowing against future increases in business rate receipts to help fund the development of infrastructure.
Who can apply?
The Local Government Resource Review will consider options to enable councils to retain their locally-raised business rates.
It will also consider how to deliver TIF powers and aims to deliver its proposals by July.
How much money is available?
TIF is financed by the additional increase in rates revenues form a defined area.
How do they access it?
The Resource Review will conclude in July. We will then move as quickly as possible towards implementation, taking account of the need for primary legislation.
Is match-funding required?
The Resource Review will conclude in July. We will then move as quickly as possible towards implementation, taking account of the need for primary legislation.
Further information
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Business Improvement Districts
What is the funding for?
A Business Improvement District is a precisely defined geographical area within which the businesses have voted to invest collectively in local improvements to enhance their trading environment.
Who can apply?
Anyone with an interest in the defined area can propose a BID, a business trading, a freeholder of land and the local authority.
How much money is available?
A BID is financed by a levy agreed by the businesses within the defined area – it is a self financing mechanism.
How do they access it?
Once the business plan is established, the proposal should be put to ballot. In order to be successful:
- More than 50 per cent f votes cast must support the BID’s business plan
- More than 50 per cent of the rateable value of votes cast must support the BID.
If successful, the BID business plan can be implemented and the levy enforced against liable ratepayers.
Is match-funding required?
No.
Further information
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Local Sustainable Transport Fund
What is the funding for?
To enable the delivery of sustainable transport solutions that both support economic growth and reduce carbon emissions. This could include for instance: tackling problems of congestion, improving the reliability and predictability of journey times, enabling economic investment, revitalising town centres, and enhancing access to employment.
Who can apply?
Any English local transport authority outside London can apply. Joint applications across neighbouring local authorities (such as a LEP area) are possible.
How much money is available?
£560 million is available over the 4 year period to 2014-15, including resource and capital.
How do they access it?
Application to Department for Transport.
Is match-funding required?
Projects should be self-sustaining beyond the fund period.
Further information
DfT - Local Sustainable Transport Fund - Guidance on the Application Process
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What is the funding for?
The Fund will provide funding, on a bid basis, for projects which support economic development in our coastal communities. This is to recognise both the contribution that these places make to the development of the Crown Estate’s marine assets and their unique economic circumstances.
Who can apply?
Government wants to make sure that as many coastal communities as possible are eligible to apply for funding and that we encourage a wide range of innovative bids including from Local Enterprise partnerships.
How much money is available?
The Fund will be equal to 50% of the revenues generated by the Crown Estate’s marine assets. The size of the fund will rise as we further exploit our offshore resources, subject to periodic review as with all Government spending. Based on the Crown Estate’s Marine revenues in 2010/11 the overall fund will be worth £23.7m beginning in 2012.
How do they access it?
Government will continue to work with the Big Fund and the Devolved Administrations in order to agree how the Coastal Communities Fund will be delivered.
Is match-funding required?
Government will bring forward further detail soon.
Further information
Government will bring forward further detail soon.
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