News: Allocation of EU funding replacement labelled an outrage by South Yorkshire mayor

South Yorkshire has been allocated £38m in new regeneration funding, much less than the hundreds of millions it previously received from structural EU funding that the new UK Shared Prosperity Fund replaces.

Conditional allocations of £2.6 billion over the next three years have been announced from the UK Shared Prosperity Fund (UKSPF) with the cash to be spent regenerating rundown high streets, fighting anti-social behaviour and crime, or helping more people into decent jobs - helping to revive communities, tackle economic decline and reverse geographical disparities in the UK.

The government committed to match the previous EU funding from the European Social Fund (ESF) and European Regional Development Fund (ERDF) and say that the fund will be much more flexible and locally led, freeing communities from the bureaucratic, rigid and complex processes of the EU Structural Funds.

Secretary of State for Levelling Up Rt Hon Michael Gove MP said: "We have taken back control of our money from the EU and we are empowering those who know their communities best to deliver on their priorities.

"The UK Shared Prosperity Fund will help to unleash the creativity and talent of communities that have for too long been overlooked and undervalued.

"By targeting this funding at areas of the country that need it the most, we will help spread opportunity and level up in every part of the United Kingdom."

Previous settlements saw South Yorkshire allocated €410m for 2007-2013 and from 2014-2020 this was cut to around €180m. A legal challenge into the government's decision followed.

The allocation formula for UK Shared Prosperity Fund takes into account both the local population data, and a broadly based measure of need, including factors like unemployment and income levels. This is to ensure the most amount of money is going to areas which will truly benefit from the fund.

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Funding for the UK Shared Prosperity Fund will be £2.6 billion between 2022 and 2025, with this figure reaching £1.5 billion per year by March 2025, delivering on the UK government’s commitment to match the average spending of EU structural funds over the previous programme. Previous EU programmes ramped up and down, and areas will continue to receive EU funding until the end of 2024. Similarly, UK Shared Prosperity Fund will be increased from £40m in 2022/23 to £1.5 billion in 2024/25, at which point it will match the EU funds it has replaced.

The Government added that in England each Local Enterprise Partnership area "will receive the same in real terms as it used to under EU funding," and within each Local Enterprise Partnership area an index of need will be used to allocated funding to each local authority.

For South Yorkshire, allocations are £7,287,599 for Barnsley, £8,960,876 for Doncaster, £7,083,489 for Rotherham and £15,574,166 for Sheffield.

In order to access the funding, lead local authorities are being asked to complete an investment plan by the summer, setting out how they intend to use and deliver the funding.

Outgoing South Yorkshire Mayor, Dan Jarvis said: "This announcement is nothing more than an outrage; a cynical Conservative con that utterly fails South Yorkshire and drives a coach and horses through the Government’s Levelling Up agenda.

"Instead of delivering the additional £900m South Yorkshire is owed, and that I’ve consistently pushed the Government to deliver, we’ve been given little over £38m over a 3-year period. This announcement has been sneaked out just a few hours before purdah and with Parliament in recess – it exemplifies this Government’s complete contempt for people in our region.

"Throughout my time as Mayor I have worked tirelessly to build a stronger, fairer and greener South Yorkshire – but I have done so with both hands tied behind my back, because central government has broken virtually every promise it’s made to our region."

Last year, £1.84m was offered from the Community Renewal Fund to help establish a "Creative & Cultural Skills Embassy" linked to Rotherham's Children's Capital of Culture idea. The Community Renewal Fund is a precursor for the new UK Shared Prosperity Fund.

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News: £1.8m for skills-led economic recovery

Sheffield Hallam University and two partner colleges have been awarded more than £1.8m funding to support regional businesses during continued Covid restrictions and enable a skills-led economic recovery.

The project, led by Sheffield Hallam with support from further education delivery partners The Sheffield College and the RNN Group, will help companies to innovate and adapt to reach their full potential as the country deals with the impact of a second national lockdown.

RNN Group consists of University Centre Rotherham, Rotherham College, North Notts College and Dearne Valley College.

Businesses will be offered a diagnostic service through an ‘SME Hub’ and will receive a tailored package of products, services and academic expertise to support them during the ongoing challenges.

It will also support the development of skills and experience of students and graduates across the three institutions through project work, placements and internships with regional businesses.

The scheme will help to establish a dedicated team of small business experts to work with SMEs, start-ups and micro-businesses, to overcome challenges and develop new opportunities including:

- links to funded initiatives to help businesses to innovate and grow
- match skilled graduates and students for short and long-term projects and placements
- workforce upskilling and professional development programmes
- collaboration with sector-specialist academics to solve organisational problems

The University runs a number of programmes and initiatives which already support businesses regionally and across the UK, to help businesses access academic research and innovation, establish and build-up new businesses, and access new talent through placements, internships and apprenticeships.

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The new funding, from the European Structural and Investment Funds (ESIF), will bring the University’s and its partner Colleges’ business-facing services together to enable a bespoke package to be offered to SME businesses to overcome their specific challenges or realise opportunities.

Conor Moss, group director and dean of work-based learning at Sheffield Hallam, said: “This project will transform the way we work with businesses to ensure each client receives access to the right support, services and expertise to address the skills priorities and needs of the business.

“The Sheffield City Region will benefit from this service by increasing the number of SME businesses achieving or exceeding their growth aims, and by encouraging more young people to begin careers in the region once they finish their education – supporting the Government’s levelling up agenda.

“The programme will particularly benefit small or microbusinesses who are often challenged by limited resources, strategic planning capacity and the ability to engage with innovation and manage change.”

SHU website

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News: Brexit tool for local businesses

An online Brexit planning tool has been launched to enable business owners in the Sheffield city region (SCR) to carry out a self-assessment and understand the potential ongoing impacts of Britain leaving the EU.

Rothbiz reported last month that economic growth in the SCR is set to be impacted by Brexit, from problems with exporting for the manufacturing sector to reduced levels of inward investment.

Through the SCR Growth Hub, the gateway for businesses to access specialist support, the online tool covers business strategy and operations, people and skills, export, sales and marketing, finance and innovation.

The tool asks a series of questions and rank the preparedness of the business based on the responses provided.

The planning tool will then provide advice on strengths and weaknesses across the six areas and take a view on potential vulnerabilities, both pre and post Brexit.

Businesses will be provided with a personalised report which will make suggestions on resources that are available, and recommend actions businesses could take to mitigate the potential impact.

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James Muir, chair of the SCR Local Enterprise Partnership (LEP), said: "The LEP board discussed the importance of encouraging and supporting businesses across the region to prepare themselves and understand the potential ongoing impacts of Brexit on their businesses.

"This online Brexit planning tool is a great way for all businesses, big or small to understand what they need to be thinking about regarding Brexit.

"This will be one of the region's biggest challenges in the coming months and as LEP Chair I will be working with the other board members to ensure that businesses are prepared and that they continue to grow and thrive even after the UK exits the European Union.”

The Rise of Performance Marketing in South Yorkshire

David Grimes, head of the SCR Growth Hub, added: "Nobody can possibly know what the full impact of exiting the European Union will be for every business across the Sheffield City Region, and indeed across the country.

"But here at the SCR Growth Hub, we're ready and waiting with expert advice to support businesses and to help them understand, as much as possible, how to address their potential challenges.

"One common theme we've seen emerging from businesses is that they are waiting to see what happens with Brexit before thinking about how it might affect them and what action to take.

"We're therefore encouraging people to start considering the impacts on their business at a much earlier stage than they may be anticipating – and this Brexit planning tool is an ideal step in that process."

SCR Growth Hub website

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News: Funding boost for SCR projects

The Sheffield city region (SCR) is working to sign off on millions of euros of funding for economic development and regeneration projects before the UK leaves the European Union (EU) next year.

Structural funding from the EU is integral to meeting the targets in the Local Enterprise Partnership's (LEP's) Growth Plan, which set an ambitious target of creating 70,000 new jobs in the SCR by 2023.

The SCR has an allocation of just over €200m of funding through the European Structural and Investment Funds (ESIF) to invest in projects and initiatives between 2014 and 2020.

The latest calls for cash from the European Regional Development Fund (ERDF) include projects based on providing gap funding to land owners and developers, supporting potential inward investors, supporting companies to be more innovative, support for low carbon schemes, supporting businesses to take advantage of superfast broadband, and support targeted at businesses that demonstrate growth potential.

£5m is set to allocated to projects that increase the provision of available property. The call states: "The availability of a quality commercial property stock is key to increasing SCR's share of Inward Investment and also to encourage local growth."

ERDF support is being made available for development in the key SCR growth areas – in particular the urban centres, Enterprise Zones and motorway corridors.

£10m has been earmarked to continue the SCR's targeting of investment and support at entrepreneurs and businesses with the potential to grow and create high value jobs with projects that are complimentary to the SCR Growth Hub.

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£3m is available for local interventions to help overcome some of the barriers faced by potential foreign investors.

£7m is set to allocated to target the "large number of SMEs which are disconnected from the innovation ecosystem" with projects to "address SCR business' low propensity for innovation, stimulate demand and idea creation for innovation and productivity growth."

For low carbon projects, £13m is set to be used to strengthen energy supply and systems, as well as ensuring greater resource efficiency. Helping business take up low carbon technology, demonstration schemes and regenerating brownfield land are key aspects of the call.

£2.3m is set to be allocated to support new and existing businesses with benefiting from superfast broadband through digital transformation and innovation.

The Government has previously said it will guarantee EU funding for structural and investment fund projects which continue after the UK has left the EU. Most projects will need to be complete by June 2023.

In March 2019, Britain will exit the EU and the Government has confirmed that it will launch the UK Shared Prosperity Fund, using money returning from the EU to provide funding for economic development and local growth across the UK.

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News: Millions more in EU funding to boost business in the SCR

Millions of pounds in funding from the European Union is set to continue to be used to support growing businesses and inward investment in the Sheffield city region (SCR).

Calls have been released relating to using EU money to support new property for inward investors, enhance the competitiveness of small and medium sized enterprises (SMEs) and for business incubation projects.

Up to £12m of funding is available for projects that target the region's advanced engineering SMEs and enable them to become more competitive in supply chains and create more high quality jobs.

The call talks of the "provision of intensive and bespoke diagnostic, coaching and training within SMEs operating in the advanced manufacturing, engineering and aerospace industries and related supply chain where working with around 60 companies will look to generate £5 billion of contract value and 10,000 jobs in the sector by 2023. This project has demonstrated that there is more demand, not only from within aerospace but in other areas of advance engineering, including automotive, defence, energy and rail – all of which have a presence in the SCR."

A second call for £2m of funding is looking to support projects that incubate high growth entrepreneurs and early stage businesses such as a competitive short-term programme of bespoke acceleration support and intensive business support for entrepreneurs to get them "investor-ready."

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A further £2m call relates to the digital economy and will fund projects that identify supply chain opportunities for digitalisation, support networks and mentoring, and provide advice and support for entrepreneurship. It aims to address the issues that saw employment in the core digital economy fall by 3% in the SCR between 2010 and 2015 whereas employment in this sector grew across the UK by 11%.

£500,000 is being made available for projects which help SME's to access graduate employees. It should enhance the current RISE programme by creating additional resource and activity.

Business support in the SCR is coordinated by the European-funded Growth Hub which creates a focal point for national and local programmes. New projects should complement the work already taking place.

For inward investment, a £3.5m call has been released to support projects in South Yorkshire. The call explains that projects will: "grow the existing business base within the SCR by encouraging new firms through inward investment and to increase supply chain development and opportunities through the provision of available property to enable both inward relocation and/or growth."

Cash is being made available in the form of development gap funding to land owners/developers in order to provide premises for SMEs that are ready for occupation almost immediately.

Structural funding from the EU is seen as integral to meeting the targets in the Local Enterprise Partnership's (LEP's) Growth Plan, which has set an ambitious target of creating 70,000 new jobs in the SCR by 2023.

Chancellor Philip Hammond confirmed last year that the Government will guarantee (with certain conditions) EU funding for structural and investment fund projects, signed after the Autumn Statement and which continue after the UK has left the EU (possibly in 2019).

Over €200m in EU funding was expected to be used to support businesses, inward investment, infrastructure, innovation and social inclusion in the SCR until 2020.

SCR Growth Hub website

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News: European funds for rural economy

Grant funding is still available for projects in the Sheffield city region (SCR) which create jobs and growth in the rural economy.

A new round of the European Agricultural Fund for Rural Development (EAFRD) Growth Programme has now opened and ventures can submit applications throughout 2017.

The EU's rural development policy helps the rural areas of the EU to meet the wide range of economic, environmental and social challenges of the 21st century. Frequently called "the second pillar" of the Common Agricultural Policy (CAP), it complements the system of direct payments to farmers and measures to manage agricultural markets (the so-called "first pillar").

Rural Development policy shares a number of objectives with other European Structural and Investment Funds (ESIF) and the growth programme supports tourism, food processing and rural business development projects.

£745,000 is available for enhancing rural tourism infrastructure. The awards of between £35,000 and £170,000 are for capital activities, for example, visitor attractions, signage and plans to enhance visitor connectivity. This fund will not be available for visitor accommodation schemes, which can be financed through the business development call.

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£835,000 of funding is available to bolster food processing businesses. Amounts from £50,000 up to £500,000 will be accessible to food processing companies of all sizes in country and urban territories for projects which create new jobs.

£464,000 is accessible for rural business development. This is for non-agricultural action in Defra-designated areas. Awards of between £35,000 and £170,000 will be accessible for capital use on ventures which will create new jobs.

Recommended reading: What You Should Know Before Visiting Rotherham?

Sir Nigel Knowles, chairman of Sheffield City Region Local Enterprise Partnership (LEP), stated: "European funding remains an important source of investment in the region and helps to support local businesses to grow and thrive. Sheffield City Region's rural economy has a diverse economic structure with manufacturing, retail and hospitality being the largest sectors.

"At SCR we grab each opportunity and make the most of it, whatever the size of the company, whatever its sector and whatever its ambition so that we can support vibrant economies and create new jobs across the region. Rural businesses play an important part in the economic growth of the region and I encourage rural businesses to apply during 2017."

SCR LEP website
Growth Programme website

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News: SCR's £8m call for low carbon projects

Whilst the UK remains in the EU, the Sheffield city region (SCR) can still benefit from European funding - a new call has gone out for low carbon and sustainable development projects.

Some £8m is available for projects in the SCR that "enhance the resilience of its energy supply and systems, as well as ensuring greater resource efficiency."

Structural funding from the EU is likely to be integral to meeting the targets in the Local Enterprise Partnership's (LEP's) Growth Plan, which has set an ambitious target of creating 70,000 new jobs in the Sheffield city region (SCR) by 2023.

Chancellor Philip Hammond confirmed last year that the Government will guarantee EU funding for structural and investment fund projects, signed after the Autumn Statement and which continue after the UK has left the EU (possibly in 2019).

The latest call for cash from the European Regional Development Fund (ERDF) states: "As well as pursuing reduced Green House Gas outcomes directly through business support for greater resource efficiency and low carbon development, Sheffield City Region is seeking to make a global impact via innovative Research & Development collaborations across sectors, to enhance its position and standing as a renowned centre of excellence in low carbon."

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Projects could include renewable energy schemes such as wind energy, solar and biomass; demonstration schemes; electric vehicles; and low impact urban buildings on brownfield land.

The call adds that £6m is expected to be made available within South Yorkshire as a Transition Region, and £2m within the remaining areas of SCR.

Bidders will need to bid for £500,000 for any single project. 60% of the total eligible project costs can be met by ERDF, subject to State Aid regulations, in the Transition Region and 50% in the More Developed Region. Consequently projects with a total value of less than £1m will not normally be supported under this call.

The closing date is February 17 2017.

Before the referendum, the LEP planned to spend some €28m on low carbon projects as part of its Structural Investment Fund Strategy that sets out how its initial allocation of €203m (£175m) of funding would be used.

SCR LEP website

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News: Developing entrepreneurial skills in the SCR

A new initiative has been launched to support adults in the Sheffield city region (SCR) by instilling confidence and developing entrepreneurial skills.

The programme is designed to tackle the root causes of poverty, promote social inclusion and drive local jobs and growth.

The project has received up to £546,300 of funding from through Building Better Opportunities, a programme jointly funded by the European Social Fund (ESF) and the Big Lottery Fund.

This project is being delivered by the Doing Good Business Partnership throughout the SCR but will focus on the engagement of participants at a neighbourhood level. The partner organisations, which include the likes of Groundwork South Yorkshire, will bring a strong knowledge of the local area and issues that people face whilst trying to gain employment.

Lynne Hilson, operations manager at Sheffield Futures, said: "Doing Good Business promises to help the hardest to reach people to make the most of their skills and ambitions by receiving the maximum help and support they need. The funding announced today is an important step towards positive change for unemployed people in Sheffield city region."

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The two-year initiative focuses on community engagement, mentoring and coaching support. Participants aged 25 – 60, will be involved in activities to build confidence and establish entrepreneurial skills, as well as progressing in to further education. In the SCR, the rate of unemployment is 6.2%, which is above the national average for Great Britain (5.1%).

The programme will deliver specialist support for people with a disability, women, BAME groups, lone parents, carers and those who are over 50 years old.

The Department for Work and Pensions is the Managing Authority for the England European Social Fund programme. Established by the European Union, the European Social Fund helps local areas stimulate their economic development by investing in projects which will support skills development, employment and job creation, social inclusion and local community regenerations.

The SCR Local Enterprise Partnership put out a call earlier this year as it looked to allocate £1m in ESF under its Socially Inclusive Self Employment programme.

Sheffield Futures website
Groundwork South Yorkshire website

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News: Government guarantees for some EU funding

European Union (EU) funded projects signed before the Autumn Statement will be fully funded, even when these projects continue beyond the UK's departure from the EU, the Government has said.

Rothbiz reported following the historic referendum vote that a number of key regeneration and business support projects in the Sheffield city region (SCR) face a funding black hole if EU structural funding allocated to the region is not replaced.

Over €200m in EU funding was expected to be used to support businesses, inward investment, infrastructure, innovation and social inclusion in the SCR until 2020.

Chancellor Philip Hammond has confirmed that all structural and investment fund projects, including agri-environment schemes, signed before the upcoming Autumn Statement will be fully funded, even when these projects continue beyond the UK's departure from the EU.

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The Treasury said that it will also put in place arrangements for assessing whether to guarantee funding for specific structural and investment fund projects that might be signed after the Autumn Statement, but while we remain a member of the EU.

Where UK organisations bid directly to the European Commission on a competitive basis for EU funding projects while we are still a member of the EU, for example universities participating in Horizon 2020, the Treasury will underwrite the payments of such awards, even when specific projects continue beyond the UK's departure from the EU.

Chancellor of the Exchequer, Philip Hammond said: "We are determined to ensure that people have stability and certainty in the period leading up to our departure from the EU and that we use the opportunities that departure presents to determine our own priorities."

The Sheffield city region LEP's EU Structural Investment Fund Strategy was only updated this year and sets out how €203m (£175m) of funding would be used, based around six main priorities: supporting and creating new businesses; growing existing businesses; attracting incoming businesses; increasing exporting; developing the skills base and labour mobility; improving and enhancing infrastructure.

Local Government Secretary Sajid Javid said: "Local Enterprise Partnerships are a vital part of our efforts to rebalance the economy, and have helped create thousands of jobs over the past five years.

"Guaranteeing EU funding will further support this work by enabling them to plan ahead with certainty so businesses, universities and local authorities across the country can enable economic growth."

Six calls were made by the SCR via the Government last year in a bid to secure £17m in EU funds for support in relation to international trade, investment into Enterprise Zones and innovation capital. Calls to secure £12m have been made this year to support SME's, self-employment, renewable energy projects, and improve access to IT.

Through its devolution deals, the Combined Authority was pushing to be given Intermediate Body status and more control over how European funding was spent.

The SCR Growth Hub, the model that coordinates and simplifies business support so that it joins up national, local, public and private business provisions across the city region, has core funding of £4.82m. It estimated that it would bring together a £22m Business Investment Fund, a Skills Bank fund of more than £17m and "access to the Sheffield City Region European Structural Funds of approximately £90m."

Further EU funding was set to be brought into a £51m property investment fund and questions still remain on the new £400m Northern Powerhouse Investment Fund (NPIF) which includes £50m from the European Investment Bank.

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News: Rotherham reacts to Brexit vote

The majority of the electorate in Rotherham have voted for Great Britain leaving the European Union with 67.9% backing Brexit.

With a voter turnout of 69.5%, 93,272 votes went to the option to leave, with 44,115 voting to remain.

Nationally, Britain voted to leave the EU - 52% to 48%. Yorkshire and the Humber gave one of the highest eurosceptic results in the country, with 57.7% of people backing Leave.

Prime Minister David Cameron, who announced that he would step down following the result, said: "The will of the British people is an instruction that must be delivered. It was not a decision that was taken lightly, not least because so many things were said by so many different organisations about the significance of this decision.

"So there can be no doubt about the result."

John McDonnell MP, Labour's Shadow Chancellor, said: "People will be waking up this morning to turmoil in the markets and the pound crashing, and fearing the emergency budget the Chancellor threatened to hike their taxes and cut public services.

"The Government must now take steps to stabilise the economy, and to protect jobs, pensions and wages."

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Paul Luen, CEO of Martek Group, the Rotherham success story which exports safety and environmental monitoring systems around the globe, welcomed the result.

Truly momentous day. Well done 52% of Britain for believing in ourselves and having Vision. Let’s TAKE BACK CONTROL! 👍😎

— Paul Luen (@paulluen) June 24, 2016

Tom Fripp, managing director at Fripp Design and Research, an innovative company based on the Advanced Manufacturing Park (AMP) in Rotherham, was not so happy with the way people voted.

To the #UK. I think you are a bit of an idiot. #Brexit

— Tom Fripp (@MrTGF) June 24, 2016

David Greenan, managing director at Newburgh Precision, the Rotherham manufacturer that has been building exports back up following the downturn in the global oil & gas market, was more balanced.

Just as i was thinking there was light at the end of the tunnel the tunnel got longer but maybe the light will be brighter.#ukmanufacturing

— David Greenan (@DavidGreenan) June 24, 2016

Cllr. Chris Read, the leader of Rotherham Council said that there was "nothing to do but hope."

Sterling dropping like a stone, FTSE expected to fall, country divided, years of negotiation ahead. Nothing to do but hope.

— Chris Read (@christophe_read) June 24, 2016

Rotherham's MP, Sarah Champion, said she would continue to fight for Rotherham's business.

Well my job now is to fight to make sure #Rotherham people & businesses get the best possible deal going forwards

— Sarah Champion MP (@SarahChampionMP) June 24, 2016

The University of Sheffield, whose Advanced Manufacturing Research Centre (AMRC) has secured millions in EU funding for facilities and research projects in Rotherham, said that leaving the EU will not happen overnight and that "there will not be any immediate material change" to the UK university sector's participation in EU programmes such as Horizon 2020.

Sir Keith Burnett, Vice-Chancellor of the University of Sheffield, said he was "gutted" at the decision, adding: "We are setting our course in a new direction, sailing into uncharted waters. I am not alone in wondering what it might mean. Academics engaged in projects with other EU universities drawing on EU funding wonder about the future of their work."

Tata, the Indian company that has put its UK steel assets up for sale and last week issued a memo to staff at its UK steel sites on the importance of the European market, said in a statement: "Tata has been operating in the UK since 1907 and remains committed to delivering long-term value for all its stakeholders. There are currently 19 independent Tata companies in the UK, with diverse businesses. Each company continuously reviews its strategy and operations in the light of developments, and will continue to do so. Access to markets and to a skilled workforce will remain important considerations."

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News: Steelworkers march on Brussels

Steelworkers from the region joined bosses and unions to gather in Brussels yesterday to march in protest at the dumping of steel products from China, which is having a big impact on jobs across the EU and violating the principles of free and fair trade.

Over 150 steelworkers from across the UK joined with 5,000 steelworkers from 15 European countries demanding that the EU takes the tough action necessary to save the European steel industry.

Tata Steel has for a long time been warning that continuing cheap imports risk undermining Europe's steel industry and that uncompetitive energy costs and the strength of sterling are hurting its UK operations. 720 jobs that are at risk - including 500 in Rotherham - as Tata Steel works through proposals to restructure its speciality and bar business. 1,000's of jobs are under threat in Scunthorpe and Scotland.

More than 500 employees from Tata Steel, Europe's second largest steel producer, were in Brussels including the company's European CEO Karl Koehler (pictured below, right) who said: "I was proud to experience the passionate spirit of our colleagues during the protest.

"Together with our peers in the steel industry we told European leaders loud and clear to stop the tide of unfairly-traded material that threatens our jobs, our industry and our future."

And, calling on EU ministers to provide the industry with a level-playing field, he added: "The European steel industry is in a fierce fight for its future. Huge global overcapacity and unfair trade practices – mainly by China and Russia – have pushed steel prices to historically low levels.

"The dumping of steel below its cost of production will continue as long as our regional, national and European leaders fail to introduce trade defence protections quickly and effectively. Measures so far have been slow and half-hearted."

With a decline in liquid steel production and turnover, Tata Steel reported a pre-tax operational loss of £68m at its European operations for the three months to the end of December, a rise from £25m in the previous quarter and a big change to the profit of £132m reported in the same period last year.

The statement from Tata said: "Surging imports into Europe exerted further pressure on margins in the last quarter. The unprecedented market conditions, made worse by the UK's regulatory costs and strong pound, led to announcements to reduce jobs and mothball assets in the UK – part of an ongoing transformation programme. Regulatory action on a European and national level is needed to enable the business to compete fairly."

In October, Rotherham hosted a top-level summit to discuss the challenges currently facing the global steel industry attended by steel companies, MPs, unions and trade bodies. A number of "asks" of the Government were laid out by steel unions which include: action on business rates; a compensation scheme for high-energy users; a commitment to favouring British steel in procurement; and work with the EU on anti-dumping measures to protect British steel from cheap subsidised imports.

Roy Rickhuss, General Secretary of the Community union (pictured with Kohler), said: "Steelworkers across Europe are feeling the effects of unfairly traded imports and a lack of government action. Unions and businesses are joining together and with one voice demanding our governments back our steel industry."

Tata Steel website

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News: £5m EU funding call to support Sheffield city region's economy

The Government has launched a call for proposals to apply for £1m of European funding to support SMEs, and £4m to support the shift to a low carbon economy in the Sheffield city region (SCR).

Structural funding from the EU is likely to be integral to meeting the targets in the Local Enterprise Partnership's (LEP's) Growth Plan, which has set an ambitious target of creating 70,000 new jobs in the Sheffield city region (SCR) by 2023. The city region can expect £180m for 2014 to 2020 which brings together funding pots such as the European Regional Development Fund (ERDF) and the European Social Fund (ESF).

Six calls were made by the SCR last year in a bid to secure £17m for support in relation to international trade, investment into Enterprise Zones and innovation capital.

The first of two new bids focuses on enhancing the competitiveness of small and medium sized enterprises (SMEs) by increasing capacity and capability and promoting entrepreneurship, specifically by providing support for social enterprises referred from the Sheffield City Region Growth Hub.

The Government is working with Local Enterprise Partnership (LEPs) across England to establish a network of private sector-led Growth Hubs connecting businesses to the right support including access to local and Government funded support services. Applicants under this call will need to demonstrate how activity and delivery will be coordinated and made accessible through the Growth Hub in the SCR.

£800,000 is made available within South Yorkshire (Transition Region), and £200,000 within the rest of Sheffield city region. Applicants are being called to submit bids for no less than £500,000 and projects should be for a maximum of three years.

The call states: "The European Structural Investment Fund Strategy recognises and promotes the role of social enterprises to deliver social as well as economic impacts thereby helping to address some of the entrenched inclusion challenges in the city region.

"Social Enterprises have particular barriers in relation to their unique business model which are not experienced by other businesses and due to the priority placed on social impact balanced against financial return.

"Social and Community Enterprises have a key role to play in growth of the city region and the city region's ambition to create sustainable growth, which benefits citizens and communities whilst growth GVA."

Deborah Egan OBE, LEP board member and chair of the Social Inclusion & Equalities Advisory Board, said: "From managing community pubs and open spaces to delivering home based care for the elderly, social enterprises play an increasingly important role in the fabric of our society.

"Sheffield City Region fully supports Social Enterprises, who can be the most innovative and agile companies in our commercial landscape."

The second call focuses on the shift towards a low carbon economy in all sectors and the use of funding to "deliver resource-saving options efficiently alongside other essential infrastructures and innovations that will help boost growth."

Funding research projects and implementation, priorities include: renewable fuels and energy, in particular wind energy, solar and biomass; the wider deployment of renewable heat such as micro-generation or district heating; energy efficiency measures for businesses; and low emission vehicles.

£3m is made available within South Yorkshire (Transition Region), and £1m within the rest of Sheffield city region. Applicants are being called to submit bids for no less than £1m with projects completed by June 2023.

Sheffield City Region LEP website

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News: EU funding fight could go to Supreme Court

Local authorities battling the government over the way it decided how millions of EU funding was allocated have been given the chance to take their appeal to the Supreme Court.

The government last year announced that the Sheffield City Region Local Enterprise Partnership (which includes South Yorkshire along with north Nottingham and north Derbyshire districts) can expect €203m for 2014 to 2020 as part of €6.2bn (£5.3bn) of EU Structural and Investment Funds to boost growth under a simplified "Growth Programme."

In the previous settlement, South Yorkshire received €410m. From 2014-2020 this will be cut to €180m.

The legal challenge focused on the appropriate treatment of the consequences of the former status of South Yorkshire as a "phasing in" region in the 2007-2013 funding period and that this allegedly gave rise to an unfair allocation for South Yorkshire, which is now classified as a "transition region" for 2014-2020.

The High Court rejected these substantive grounds of challenge and said that the methodology adopted by the Secretary of State was lawful and rational. However, the Court quashed Ministers decisions after ruling they were unlawful as they had been taken in breach of the Public Sector Equality Duty under section 149 of the Equality Act 2010.

The Government only carried out an Equality Impact Assessment after the decision was taken to protect Scotland, Northern Ireland and Wales from a cut of more than a five per cent. The decision meant that the Government had to reconsider its decision, taking into account proper equalities information.

Led by Rotherham Council, the authorities in South Yorkshire and Merseyside appealed against the High Court rejection. That appeal was dismissed in June when the judge decided that, due to the complex nature of the funding, Vince Cable should be afforded a wide margin of discretion and that the courts should not interfere.

The Court also refused permission to appeal but representatives escalated the case to the Supreme Court which has granted permission to appeal.

The leaders of the local authorities in South Yorkshire are now considering whether to proceed with the appeal alongside Merseyside. If they do, the case is set to be heard in October.

European programmes such as the European Regional Development Fund (ERDF) have supported projects in Rotherham such as The Advanced Manufacturing Research Centre (AMRC), the Nuclear AMRC, the redevelopment of Rotherham Railway Station, the Rotherham Renaissance Flood Alleviation Scheme (pictured), the award-winning enterprise education programme Rotherham Ready, and business support programmes for high growth companies and enterprising exporters.

Images: Sheffield and Rotherham Wildlife Trust

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News: Wentworth Woodhouse - Makers, Miners and Money

Wentworth Woodhouse in Rotherham, the largest privately-owned house in Europe, has been highlighted as a key site in an international project to promote tourism around famous industrial heritage.

The European Route of Industrial Heritage brings together anchor points and key sites on various themes across North West Europe, "the cradle of the Industrial Revolution." Securing finance from the EU, member states joined together to encourage the appreciation, understanding, protection and promotion of their common history as a means of achieving economic growth.

This week saw the official launch of a new route between Huddersfield, Sheffield and Barnsley - the heart of Yorkshire's Industrial Revolution. Called "Makers, Miners and Money" the route highlights the huge contribution this region played in shaping Europe's industrial past, and includes anchor points at the National Coal Mining Museum of England, Kelham Island Industrial Museum and the village of Elsecar.

Also included are Wentworth Woodhouse, Wentworth Castle Gardens and seven other sites in the region that reflect the wealth, power and enterprise of a great industrial age of coal, iron and steel.

Wentworth Woodhouse is a symbol of the wealth and ambition of the Fitzwilliam family, with much of the wealth coming from the local coal mining operations that they owned. It actually includes two houses of totally different architectural styles, built by The First Marquess of Rockingham between 1725 and 1750. The west front of the house in the baroque style and the east front, some 615 ft long, in the later palladian style.

The stunning house, which is now open to tours, is also part of the project's route charting the mining industry in Europe alongside sites in Westphalia in Germany, and Liège and Mons in Belgium.

The Fitzwilliams owned the ironworks and workshops at Elsecar as well as other iron works and collieries between Barnsley and Rotherham. Vastly wealthy, the family also built the railway line and works housing adjoining Elsecar.

To celebrate the newly announced heritage route, the Earl of Fitzwilliam's 1913 Simplex car, made the journey from its home at Kelham Island Museum back to the village of Elsecar. As a director of the company, The 7th Earl "Billy Fitzbilly" brought production of Brotherhood-Crocker cars from Peterborough to a factory at Tinsley in Sheffield.

Wentworth Woodhouse website
Makers, Miners and Money website
European Route of Industrial Heritage website

Images: Johnson Cameraface on flickr, used under Creative Commons license / ERIH

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News: Rotherham's fight for further funding fails on appeal

Less money will be available for economic development projects in Rotherham after local authorities challenging the government's reallocation of 50% of South Yorkshire's European funding had their appeal dismissed.

The government last year announced that the Sheffield City Region Local Enterprise Partnership (which includes South Yorkshire along with north Nottingham and north Derbyshire districts) can expect €203m for 2014 to 2020 as part of €6.2bn (£5.3bn) of EU Structural and Investment Funds to boost growth under a simplified "Growth Programme."

In the previous settlement, South Yorkshire received €410m. From 2014-2020 this will be cut to €180m.

The legal challenge focused on the appropriate treatment of the consequences of the former status of South Yorkshire as a "phasing in" region in the 2007-2013 funding period and that this allegedly gave rise to an unfair allocation for South Yorkshire, which is now classified as a "transition region" for 2014-2020.

The High Court rejected these substantive grounds of challenge and said that the methodology adopted by the Secretary of State was lawful and rational. However, the Court quashed Ministers decisions after ruling they were unlawful as they had been taken in breach of the Public Sector Equality Duty under section 149 of the Equality Act 2010.

The Government only carried out an Equality Impact Assessment after the decision was taken to protect Scotland, Northern Ireland and Wales from a cut of more than a five per cent. The decision meant that the Government had to reconsider its decision, taking into account proper equalities information.

Led by Rotherham Council, the authorities in South Yorkshire and Merseyside appealed against the High Court rejection. That appeal was dismissed last month.

Concluding that the Secretary of State, Vince Cable made the funding decisions lawfully and rationally, Lord Justice Maurice Kay and Lord Justice Floyd said in a report: "In our view, the first and second decisions were plainly concerned with matters of high level policy and economic, social and political judgment. They involved the making of choices as to funding allocations between the regions.

"Even if the only objective was the reduction of the disparities between levels of economic development of regions, that would involve the making of complex assessments of their respective economic circumstances. These are not hard-edged decisions which admit of clear and straightforward answers. But as we have seen, the objectives of allocating the funds so as to achieve "smart, sustainable and inclusive growth" were not limited to narrow issues of economics. They specifically included detailed guidelines on employment policies, a target of improving conditions for research and development and a target for reducing greenhouse gas emissions and increasing energy efficiency. These objectives could be achieved in many different ways. In our view, this is classic territory for affording the decision-maker a wide margin of discretion.

"We consider that the court should only interfere if satisfied that the decisions were manifestly inappropriate or manifestly wrong."

Despite the fact that South Yorkshire and Merseyside has seen its funding cut by 60%, the judges ruled that the authorities' arguments "do not, whether considered individually or in combination, come anywhere near demonstrating that the first and second decisions were irrational or manifestly inappropriate or manifestly wrong."

European programmes such as the European Regional Development Fund (ERDF) have supported projects in Rotherham such as The Advanced Manufacturing Research Centre (AMRC), the redevelopment of Rotherham Railway Station, RiDO's business centres (pictured), the award-winning enterprise education programme Rotherham Ready, and business support programmes for high growth companies and enterprising exporters.

Images: RiDO

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News: Xeros awarded EU innovation grant

Innovative Rotherham company, Xeros has been awarded an EU grant to accelerate the roll-out of its revolutionary clothes laundering technology in the UK and Europe.

The Leeds University spin-out, based on the Advanced Manufacturing Park (AMP) in Rotherham, has developed a patented system using a unique method of special polymer beads rather than the usual large amounts of fresh water to clean clothes.

Raising millions by launching on the AIM stock exchange, Xeros is powering ahead with the development and commercialisation of its entirely new clothes cleaning process - the first real innovation in the laundry industry for 60 years. The systems are being used in hotels, gyms and commercial cleaners where they use 70% less water, up to 50% less energy and approximately 50% less detergent.

The firm has targeted the massive US market where the first sales in US commercial laundry market have been achieved and a US domestic laundry prototype has been developed. 30 systems have been installed or are committed to be installed in the US, UK and EU and Xeros estimates that approximately 120 further machine installations are expected for 2014.

Now the firm's UK subsidiary, Xeros Limited, has secured around €700,000 in the form of a CIP Eco-innovation grant to support early take up by European commercial laundries of the Xeros polymer bead cleaning system.

Launched in 2008, the Eco-innovation initiative is part of the EU's Entrepreneurship and Innovation Programme (EIP), set up to support innovation among SMEs and to improve their competitiveness.

Bill Westwater, CEO of Xeros, said: "We are delighted to win this competitive European award. It is another validation of the huge potential of Xeros' bead cleaning system in the commercial laundry market and will help accelerate our early stage roll-out in the UK and Europe.

"In the US, our machines are eligible for rebates from utility companies so in the UK and Europe this grant provides a similar level of financial support. Both incentives seek to achieve the same thing: driving disruptive, environmentally friendly cleaning by lowering the cost of entry for early adopters."

Xeros website

Images: Xeros

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News: SMEs look to Horizon 2020

Pera Technology is hosting an event in Rotherham next week to help businesses find out more about the EU's flagship Horizon 2020 funding programme.

Pera links firms with world-class scientists and commercial partners to help get new products to the market. It has secured in excess of €87m for SME businesses as part of the previous research and innovation programme funds from the EU. Over the past decade, it has created at least 600 innovative technology projects, with a market value of around £20 billion for clients.

Horizon 2020 is the biggest EU Research and Innovation programme ever with nearly €80 billion of funding available over seven years (2014 to 2020) – in addition to the private investment that this money will attract. It promises more breakthroughs, discoveries and world-firsts by taking great ideas from the lab to the market.

The EU has set a deadline of June 18 2014 for companies to bid for a slice of the €3.3 billion (£2.75 billion) Dedicated SME Instrument (DSI) during "Phase 1" of the initiative.

Applications can take anything between one and three months to complete, so Pera is urging British businesses start planning now.

A series of free to attend events are taking place in England this month with MAGNA Adventure Science Centre in Rotherham hosting Pera Technology on April 8.

As well as explaining how firms can bid for Phase 1 funding, the events will also cover the intricacies of Phase 2, where companies can apply for a further €3m for R&D purposes.

Paul Tranter, chief executive of Pera Technology, said: "Never before has this level of funding been made available to small and medium sized business for new product development purposes.

"One of the key differences between Horizon 2020, its predecessors and other public funding options is its commercial awareness. SMEs receive all of the money to spend as they see fit with a further 15 days of free coaching paid for directly by the European Commission.

"Only products that demonstrate a clear commercial demand will receive funding, meaning it's those products closer to market that are likely to be most successful. However, for company's earlier on in the development process there is additional funding available for initial research purposes."

Pera Technology website

Images: European Commission

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News: LEP submits plan for investing EU funds

As local authorities continue the legal challenge regarding the government's reallocation of 50% of South Yorkshire's European funding, the Sheffield City Region Local Enterprise Partnership (LEP) has put together a plan for how the funding will be used to create more private sector jobs in the city region.


The Government's new model of local economic growth centres around LEPs, a collaboration between businesses and the local authorities that are placed at the heart of growth in the regions. In response to the Heseltine Review, the Government has charged LEPs with putting together local growth plans that will be the basis on which the Government negotiates deals with each LEP for new levers, resources, funding and flexibility over them.

In the future, LEPs will then be able to bid into a single pot of funding to support their plans.

The LEP's Growth Plan, which has set an ambitious target of creating 70,000 new jobs in the Sheffield city region (SCR) by 2023, was submitted to the Government at the end of last year. The use of structural funding from the EU is likely to be integral to meeting the targets.

The recently submitted EU Structural Investment Fund Strategy sets out how €203m (£175m) of funding will be used, based around six main priorities: supporting and creating new businesses; growing existing businesses; attracting incoming businesses; increasing exporting; developing the skills base and labour mobility; improving and enhancing infrastructure.

The strategy includes a small number of large-scale sub-programmes such as a £16m "Growth Hub" to coordinate business support and provide a single point of contact for all business support services in the city region. Sponsored bespoke packages of support called "Growth Deals" would also be offered to high growth businesses and inward investors.

Another key focus is to compliment existing finance programmes and to address continuing issues relating to access to debt and equity finance. With £24m set aside, this could include a £50m+ loan and equity fund backed by the EU and Finance Yorkshire and the development of specific finance products aimed at small businesses and specialist sectors.

An employer-led "Skills Bank" could also be created that would bring together funding for skills and give more purchasing power to the employers who use the skills system, allowing employers to draw on funding to meet their skills needs.

Regarding infrastructure, interventions include developing Doncaster Sheffield Airport to drive engineering and aerospace activity and a connectivity package regarding the proposed HS2 station location to maximise the predicted economic potential and business growth.

Other areas for investment include social inclusion to ensure that all parts of SCR are able to share in the benefits of economic growth and low carbon that includes proposals for district heating, retrofitting properties and sustainable transport.

James Newman, chairman of the Sheffield City Region Local Enterprise Partnership, said: "Our track record on delivery is second to none, whether you look at our partners' use of the current round of EU funds, or the LEP's record with Government funds, or the city region's forerunner move to establish a Combined Authority. The next step will see us having the strategic oversight of over €200m European programme with governance in place to manage a fair and transparent process.

"This new programme is vitally important and a significant tool to drive growth, create jobs and encourage social inclusion and we remain firmly of the view that given additional resources the impact we propose would be even more significant."

In a debate in Parliament yesterday led by John Healey, the MP for Wentworth and Dearne, it was revealed that the local authorities are planning to appeal the judge's decision regarding the government's methodology for allocation the funding being lawful and rational. Vince Cable, Secretary of State for Business, Innovation and Skills responded that the government is looking again at the allocations but is not planning to change the methodology. A decision is expected in the next few weeks but progress could be slowed by the legal challenge.

Sheffield City Region Local Enterprise Partnership website

Images: European Commission / Facebook

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News: Fight for fair EU funding continues

Local authorities challenging the government's reallocation of 50% of South Yorkshire's European funding will consider taking their challenge to the Court of Appeal.

The government last year announced that the Sheffield City Region Local Enterprise Partnership (which includes South Yorkshire along with north Nottingham and north Derbyshire districts) can expect €203m for 2014 to 2020 as part of €6.2bn (£5.3bn) of EU Structural and Investment Funds to boost growth under a simplified "Growth Programme."

In the current settlement, South Yorkshire receives €410m. From 2014-2020 this will be cut to €180m.

The legal challenge focused on the appropriate treatment of the consequences of the former status of South Yorkshire as a "phasing in" region in the 2007-2013 funding period and that this allegedly gave rise to an unfair allocation for South Yorkshire, which is now classified as a "transition region" for 2014-2020.

The High Court rejected these substantive grounds of challenge and said that the methodology adopted by the Secretary of State was lawful and rational. However, the Court quashed Ministers decisions after ruling they were unlawful as they had been taken in breach of the Public Sector Equality Duty under section 149 of the Equality Act 2010.

The Government only carried out an Equality Impact Assessment after the decision was taken to protect Scotland, Northern Ireland and Wales from a cut of more than a five per cent.

The judgement also confirms that the government's own estimate of the funding for South Yorkshire is €58m less than the European Commission's policy intended.

Councillor Roger Stone, Leader of Rotherham Borough Council, said: "We are obviously pleased that the decision has been quashed and that the Government will now have to reconsider the drastic effects of his decision to cut funding by 61 per cent to the economically-deprived areas of South Yorkshire and Merseyside.

"However, we are disappointed that the Judge did not agree with us that the methodology used in making the allocation decisions, was so unfair that it was in itself unlawful.

"We do not take legal action lightly. But this is a hugely serious matter and we  are sure that our people would want us to fight to try and get as much regeneration funding as possible, particularly as the European Union itself said there was a discrepancy."

The ruling will not result in the authorities automatically receiving more funding but it does mean the Government will have to reconsider its decision, taking into account proper equalities information. The claimants, led by Rotherham Council, will consider whether to take their EU law and other substantive challenges to the Court of Appeal.

Wentworth and Dearne MP John Healey has been fighting for fairness even before the Government's decision was made and is demanding a meeting with the Business Secretary Vince Cable and has applied for a Parliamentary debate later this month.

Mr Healey, said: "The government have proposed cutbacks in European funding much more severe even than our worst fears, and massively deeper than in any other area in the UK.

"The high court has now told the government to rethink the decisions they have taken on this money, which is crucial to helping our economy reach its potential.

"I want to ensure any new decisions stop discrimination against our region, so have requested an urgent meeting to discuss the court's judgement and put the case for a fair settlement to support jobs and stronger growth in South Yorkshire."

European programmes such as the European Regional Development Fund (ERDF) have supported projects in Rotherham such as The Advanced Manufacturing Research Centre (AMRC), the Nuclear AMRC, the redevelopment of Rotherham Railway Station (pictured), the award-winning enterprise education programme Rotherham Ready, and business support programmes for high growth companies and enterprising exporters.

Images: Aedas

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News: Sheffield city region wins EU funding challenge

The High Court has ruled that a reallocation of 50% of South Yorkshire's European funding is unlawful.

Lawyers for Liverpool City Region and Sheffield City Region brought a joint action arguing the reduction was disproportional compared to other areas. It is the first time a successful challenge has been made against EU funding allocations.

The government last year announced that the Sheffield City Region Local Enterprise Partnership (which includes South Yorkshire along with north Nottingham and north Derbyshire districts) can expect €203m for 2014 to 2020 as part of €6.2bn (£5.3bn) of EU Structural and Investment Funds to boost growth under a simplified "Growth Programme."

In the current settlement, South Yorkshire receives €410m. From 2014-2020 this will be cut to €180m.

The EU has granted "transition region" status to South Yorkshire based on its GDP which is 84% of the European regional average. Despite this, the government announced that it would be reallocating around 50% of South Yorkshire's funding to regions such as Scotland which has a GDP of 107%, causing outrage and confusion across the region.

It was a similar story on Merseyside and the two regions asked for a judicial review into the government's decision.

The Judge in the case, which met in Leeds recently, has quashed the funding decision because the Government breached its legal duty to have due regard to the need to, amongst other things, eliminate discrimination and advance equality of opportunity. He has ordered the Government to reconsider its decision.

Mayor of Liverpool Joe Anderson, said: "The evidence presented to court shows that, based on the Government's own figures, ministers decided to allocate €150 million less to Liverpool City Region and almost €90 million less to South Yorkshire than they themselves had estimated our share of the UK pot to be.

"There is no doubt in my mind that they were guilty of cutting our funding unfairly. In my view this is sheer arrogance and I am pleased our case has been supported in a court of law."

European programmes such as the European Regional Development Fund (ERDF) have supported projects in Rotherham such as The Advanced Manufacturing Research Centre (AMRC) (pictured), the Nuclear AMRC, the redevelopment of Rotherham Railway Station, the award-winning enterprise education programme Rotherham Ready, and business support programmes for high growth companies and enterprising exporters.

Rotherham Council's legal team lead on the review on behalf of the city regions.

Images: Bond Bryan

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