Introducing Economic Participation
Since 1 April this year, EEDA's achievements through Investing in Communities are now being taken forward as part of a new programme for Economic Participation.
EEDA's essential goal through these programmes remains the same. Calling the new programme 'Economic Participation' is a clear way of demonstrating its commitment to enhancing employability and increasing economic opportunities for people to participate fully in the region's economy. The high-level priorities for Investing in Communities will also be carried forward: raising skill levels, addressing barriers to employment and stimulating enterprise.
EEDA will continue the regional programmes from Investing in Communities, such as the migrant worker programme, Building Communities Fund and support for community development finance. It will also maintain its support for regional third sector networks.
Leading the region
In the new corporate plan, EEDA will now strengthen its role as strategic lead for the region on issues of Economic Participation. This corresponds with the focus of the Government's sub-national review of economic development and regeneration which is encouraging greater local delivery guided by regional expertise. The economic participation programme will therefore have a stronger focus on evaluation and identifying good practice, gathering regional intelligence and capacity building. Already EEDA is pursuing these priorities through programmes such as Enterprise Road and commissioning new research including two studies on issues of migration. Activities like these will enable EEDA to support both local policy development and service provision across the region.
As part of this move EEDA will also work more closely with local authorities. In this financial year the delivery of EEDA's funding for five of the Investing in Communities sub-regional programmes will become the responsibility of the appropriate county or unitary authority in each area, with the remaining four to be transferred by 1 April 2009. EEDA is very pleased with all that has been achieved through the local Investing in Communities programmes, but believes the time is now right for its investment to be delivered through the local area agreement process. This will not only allow its money to be spent more efficiently, but also to be targeted more effectively and will draw in a wider range of partners.
EEDA will support the local authority by providing its experience and expertise on economic development at the programme level through the strategic partnership. The local authority will be responsible for selection and management of projects to achieve an agreed set of outcome targets for economic participation. Projects that are currently receiving funding will continue to be supported during a transition period. During this time the local authorities will review funding commitments and delivery arrangements to ensure that funds are being most effectively used to increase local rates of economic participation.
FAQ
Why has EEDA taken the decision now to transfer accountability to local authorities?
EEDA's commitment has always been to work with the most appropriate local partners to ensure that its funds meet local needs. When the Investing in Communities programme was established in 2003, the Sub-Regional Economic Partnerships (SREPs) were the most appropriate local delivery vehicle, and EEDA is pleased with how they have performed. Since that time, local area agreements have been effectively established and the mandate of local authorities in economic development has been strengthened further by the change to the statutory framework from 1 April 2008. In line with the Government's sub-national review, EEDA therefore considers local authorities to be the most effective partners to take forward the Investing in Communities funding.
When is the transfer of accountability in each area happening?
Contracts for programme funding in Cambridgeshire, Peterborough, Norfolk, Suffolk, and Hertfordshire will be issued shortly for the 2008/09 financial year. Funding allocated to the sub-regional programmes for Bedfordshire and Luton, Mid and West Essex, Haven Gateway and Thames Gateway will be re-allocated according to local authority boundaries and contracted to the appropriate local authority by 1 April 2009 at the latest.
Is EEDA doing this to save money?
The transition to local authorities will certainly result in an increased efficiency of spend and reduced duplication of management costs. However, EEDA's primary motivation is to achieve greater effectiveness of local targeting and involve a broader range of local partners by delivering funds through the local area agreement process.
Does this mean EEDA will lose influence over its money?
No. While EEDA will not be required to undertake routine project management and appraisal for projects funded via local authorities, it will now have greater influence in the early stages of prioritisation and programme design and will bring its regional expertise and intelligence to decisions about all investments made by partners through the LAA.
How will EEDA ensure its money will be spent appropriately?
EEDA will now have a greater engagement in the funding process. EEDA's Board will be required to approve the local area agreement, which will effectively act as a high level business plan. One of EEDA's executive directors will be part of the decision-making process from programme design to consideration of the evaluations and appraisals undertaken locally. While EEDA will not carry out its own appraisals, the local authority chief executive and section 151 officer must complete annual audited returns confirming that funding has been utilised within the framework required by EEDA's funding agreement.
Is this a lessening of EEDA's commitment to the sub-regional IiC programme?
No, EEDA remains committed to honouring its pledge of £101 million delivered by local partners to enable people to participate in the economy. The transference of accountability to local authorities demonstrates EEDA's commitment to ensuring the most effective and efficient use of that money within a locally based partnership approach.
What about projects currently being funded through the sub-regional programme?
The local authorities that EEDA is contracting with this year have agreed a period of transition to provide continuity of funding to projects in the short-term. During this period the local authorities will review funding commitments and delivery arrangements with guidance from EEDA to ensure that funds are being most effectively used to increase local rates of economic participation.
Will EEDA be delivering less through economic participation?
EEDA will continue to deliver its range of regional programmes for economic participation and has committed at least 20% more money to be delivered by local partners this financial year than last year. With local authorities assuming more responsibility for management and appraisal of local projects, EEDA can focus more appropriately on evaluation and identifying good practice, gathering regional intelligence and capacity building.
Is EEDA abandoning its commitment to social inclusion?
EEDA recognises that increasing rates of economic participation is likely to have a positive effect on social inclusion and that increased community cohesion also tends to result in greater economic participation. However, EEDA's remit as an economic development agency does not include a focus on social inclusion per se and EEDA acknowledges the contribution of regional partners to enhancing social inclusion in the East of England.
Why does EEDA's website still talk about Investing in Communities?
The EEDA website is in the process of being refreshed to reflect the new corporate plan structure. This is a significant task but we expect the new design to go online soon.
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