European Funding

Spotlight on European Funding

Torbay has access to the South West Objective 2 and Objective 3 Structural Funds programmes.  These programmes are administered by the Government Office South West and covers some 585,000 people in the districts of West Devon, Torridge, North Devon and South Hams, most of Plymouth, parts of Torbay and West Somerset and 5 wards in inner city Bristol.

Objective 2

In Torbay, Objective 2 money is available for projects in Blatchcombe, Cockington with Chelston, Furzeham with Churston, St Peters with St Marys, Tormohun and Torwood.

The priorities for Objective 2 are:

• Neighbourhood Renewal - targeted at the most deprived areas in the South West. In Torbay, its available in Blatchcombe, Torwood and Tormohun. It can support activities which help reduce economic and social exclusion by building the capacity of community and voluntary groups plus help local people to plan and implement strategies, which address the needs of their area.
• SME Development Technology and Innovation - supports increasing the competitiveness and sustainability of new and existing SMEs through the provision of quality business support, access to finance and the development of new business sites.
• A Better Future for Traditional Economies - to support activities which improve the traditional economies of the area (e.g. tourism, fisheries and the wider rural economy).

Objective 2 tends to be aimed at economic regeneration projects promoted by the public sector. This involves:

• Government Departments
• Regional Development Agencies (RDAs)
• Local Authorities
• Further and Higher Education establishments
• Other public bodies
• Community and Voluntary Sector organisations

In certain circumstances, the fund can help the development of small and medium-sized enterprises (SMEs) usually  through an intermediary organisation and private sector companies are encouraged to present applications in partnership with a public sector body.  Individuals however may not apply under Objective 2.

There is no standard grant rate for Objective 2 and grants are awarded at the minimum rate necessary for the project to proceed, subject to an overall maximum intervention rate. The types of activity and the likely grant rate are summarised below

• Capital investment, which does not generate substantial net revenue (except communications and transport infrastructure) - 50%.
• Transport and Communications infrastructure - 25%.
• Capital investment, which generates substantial net revenue - 25%.
• Revenue expenditure schemes, which do not support directly individual enterprises (e.g. Tourist information services) - 50%.
• Expenditure in support of projects under Objective 2 ESF measures - 45%.

In addition to the funding from Objective 2 projects will need to have enough 'match funding' from other sources such as:

• Regional Development Agencies
• Government schemes including the Single Regeneration Budget
• Other Public Bodies
• The Private Sector
• Paid Staff and Volunteer time

For further information on bidding for Objective 2 in this area, please contact Torbay Development Agency.

Objective 3 (ESF)

Funded entirely from the European Unions European Social Fund the Objective 3 programme is available across the South West (except Cornwall and Isles of Scilly) and funds training, human resources and equal opportunities schemes to promote employability of people.

Objective 3 can provide financial support towards the running costs of projects run by a variety of organisations. These projects can include those for training, employment, education, research and childcare. ESF also supports Government programmes, including New Deal.

The whole area of eligibility for European funding is a complex one. If you meet the following criteria you may be eligible to apply for European Social Funding.

Legally constituted organisation (i.e. formed with a legal document such as an agreement of memorandum of association) and large companies can apply for ESF providing they work in partnership with small and medium sized enterprises (SMES) and at least 50% of the beneficiaries will be from SMES.

Individuals cannot apply for European Social Fund money. Your organisation is involved in an activity in one of the supported measures and is currently in receipt of financial support from the public sector (typically 10% of total costs).

Under Objective 3 there are five priorities:

1. Active Labour Market Policies
2. Equal Opportunities and Social Inclusion
3. Lifelong Learning
4. Adaptability and Entrepreneurship
5. Improving Women's Participation in the Labour Market

All applications into Objective 3 are towards running costs only.  Individual items exceeding £1000 are not eligible. Other ineligible costs include:

• loan and current account interest
• other financial charges
• consultancy fees for activities such as filling in applications, or management fees or commissions
• staff time spent filling in applications
• buying equipment or buildings (threshold currently £1,000)
• costs of finance leases
• charging again for equipment or buildings which have previously attracted EU funding
• any expenditure that does not clearly relate to the project
• any expenditure which is not supported by written sources

As this is a complex area you may wish to discuss in greater detail your eligibility to apply for European Social Funding by the Torbay Development Agency or the Government Office South West who manage the Programme.

ESF pays for a proportion (usually 45%) of a project's costs. The remaining amount (at least 55%) is known as match funding. Match funding can come from both public and private sources but at least 10% must be provided by a public body.

ESF will contribute to any actual eligible costs spent in carrying out approved activity. These can include for example staff and utilities (gas, electricity and water) costs. A full listing of ineligible costs is available from GOSW.