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Regional Growth Fund Resources (SWO Economy Module)

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The Regional Growth Fund (RGF) is a new £1.4bn three year government fund that will operate across England to stimulate private sector led sustainable economic growth and employment. The RGF will particularly help support those areas and communities that are currently dependent on the public sector to make the transition to private sector led growth and prosperity.  The successful applicants for the first two rounds of RGF funding have been announced. A summary of the successful applications for round 2 is now available on the BIS website.

The Economy Module website contains a wide range of resources that can be used to support robust RGF bids - these include the SW Regional Accounts and economic impact analysis tool, economic data and analysis, sub-regional economic projections, and a wide range of publications providing essential economic context.  This page signposts resources produced by the Economy Module, the South West Observatory Core Unit and other agencies - data, intelligence and relevant research - that can help potential Regional Growth Fund bidders in the South West with the application process.

If there is any further information or data that you require, please get in touch with the Economy Module.  For enquiries regarding the Green Book or economic assessment and appraisal please contact the SWO Core Unit (01823 447390). 

Source - BIS / Regional Growth Fund

Who Qualifies?

Bids for funding from private bodies and public private partnerships across England on a challenge basis will be accepted. We envisage bidding partnerships coming together that include a combination of large private sector players, SMEs and social enterprises working together with public partners. In particular it is expected that Local Enterprise Partnerships will play a role in coordinating across areas and communities, and in bidding for the Fund.

While all areas of England are eligible to bid for the RGF some parts of the country (particularly where there is currently high employment, low-levels of deprivation and a vibrant private sector) may struggle to demonstrate how they meet the second objective of the fund.

What sort of projects qualify?

The Regional Growth Fund will provide a mixture of direct support for private sector investments and support for some basic infrastructure that removes the barriers that trigger private sector led economic growth as part of a wider investment. Bids must be able to demonstrate that the Fund will create long term growth by levering private sector investment and jobs.

How much is available?

The RGF is a £1.4bn fund. A minimum bidding threshold of £1m assistance will apply. This will ensure that the Fund is accessible to SMEs, which should encourage a wide diversity of bids, harnessing innovation from all sectors. A lot of interest in the Fund is anticipated so bidders need to present realistic and competitive bids. Projects that would go ordinarily ahead without support from the Fund will not be considered.

Who decides?

Final decisions regarding support and prioritisation will be taken by a ministerial group chaired by the Deputy Prime Minister including the Chief Secretary to the Treasury and the Secretaries of State for: Business Innovation and Skills; Communities and Local Government; Transport; and Environment Food and Rural Affairs. The ministerial group will be assisted by an independent advisory panel chaired by Lord Heseltine that will make recommendations on which proposals best address the objectives of the RGF.

When will bidding commence?

Round 1 of the bidding is now open with a closing date of 21 January 2011. The second round will be announced shortly. It is planned that there will be at least three rounds of bidding.

How do I find out more in the South West?
You can telephone the BIS RGF Contact Point in the South West by calling 01752 635067.
Public Sector Cuts

One of the key objectives of the Regional Growth Fund is to "help those areas and communities that are currently dependent on the public sector make the transition to sustainable private sector-led growth and prosperity".

It is important for potential RGF bidders to note that a quantitative assessment of suitability of project/package location will be made based upon DWP Labour Group analysis for the functional economic area(s) affected. Indicators will include (i) the claimant count; and (ii) the concentration of public sector employment. This analysis will be augmented by other quantitative/qualitative evidence regarding localised impact (e.g. indirect impact of public sector retrenchment and other impacts not captured by the labour market statistics).

Therefore the links and documents below are indicative, helping to inform potential bids but they may differ from the DWP Labour Group analysis against which bids will be assessed.

Private sector job creation - November 2011
This paper looks at the prospects for private sector job growth in the South West and charts the scale of public sector job losses in the region during 2010-2011.

Impact of public sector spending cuts - September 2010
This analysis by the Economy Module in 2010 looked at the emerging evidence of the impact of public sector spending cuts on the South West and its places, including the effect of public sector job losses, cuts to public sector procurement and capital investment, reduction in public service provision and welfare reform.

Public Sector Employment
Produced in 2010, this page produced by the ONS regional analyst for the South West provided details of statistics on public sector employment. The ONS' quarterly estimate of public sector employment (PSE) do not include sub-regional data or any breakdown of regional data into sector or industry. Other data sources do provide such information and this page includes briefings that introduce these sources and, in particular, highlights the South West data within them. There are also links to related spreadsheets and to relevant websites.

Regaining our Balance - Implications for the South West Economy
The new UK coalition government believes that the UK economy has become unbalanced and overly indebted. Much recent debate on the UK economy has emphasized these perceived imbalances and the urgent need to redress them. This economic simulation bulletin from the Economy Module investigates the possible implications for the South West of 'rebalancing' the UK economy, examining the evidence for various types of economic 'imbalance' and ways in which economies have historically become restructured as imbalances have been removed. It then explores the possible implications for the South West economy by modelling of implications of three rebalancing scenarios.

The Economics of CSR: Ramifications for SW England - 21st October 2010
The Comprehensive Spending Review (CSR) provides details on departmental spending reductions over the next four years. These will dampen demand across the SW region. This Economy Module briefing provided an immediate reaction to the announcements.

Fiscal Tightening Update: Implications for the South West Economy - December 2010
Following the Coalition's Comprehensive Spending Review, the Economy Module published an update on its earlier (pre-election) analysis of the impact of fiscal tightening on the South West's economy. The simulation results suggest that the announced ‘fiscal consolidation’ measures could result in a significant short term reduction in total output and employment within the South West. South West GVA will be around £800 million (or 0.9%) lower in 2012 and 2013 than in the absence of these measures, while total employment will decline by around 19,000 full-time equivalent jobs. By 2020, South West output will be only around 0.1% lower than without these fiscal consolidation measures.

Data Sources

The following sources provide data which may be useful in supporting Regional Growth Fund bids.

The Economy Module regularly published simulations and projections in order to provide insight into where the South West economy was heading in the short, medium and longer term. The simulations and projections are modelled using information from the South West Regional Accounts, supplemented by additional information from ONS sources and from original research.

The Index of Multiple Deprivation 2010 (IMD 2010) measures deprivation in seven domains (income; employment: health; education, skills and training; barriers to housing and services; crime and the living environment). The SW Observatory's Index of Multiple Deprivation page gives more detail on how to use the index and presents summary measures of the IMD 2010 at local authority district level and county council level.

The Economic Indicators series were a compilation by the Economy Module of headline economic information. The series ran on a cycle, regularly publishing up-to-date regional and sub-regional economic indicators. Links to UK indicators published elsewhere are also listed.

Nomis is the primary source for sub-regional labour market statistics, including employment, unemployment, wages, claimants and qualification levels. Nomis is a highly flexible tool which enables the user to quickly and easily select and download data at varying levels of geography.

The Office for National Statistics (ONS) provides a wide variety of official economic and social statistics.

Research & Analysis

The following sources provide research and analysis by the Economy Module on a wide variety of relevant topics.

The Economics Review series was published three times per year. It reviewed the latest international, national and regional economic trends and included themed papers of special interest. This is a comprehensive source and would provide useful context for any potential Regional Growth Fund application - identifying key strengths and weaknesses in the local economy.

The Economics Monitor provided regular commentary and analysis of key UK economic trends and world trends - commenting upon the key issues of the time.

The Business Review looked at the recent performance of South West business with a particular focus on the recession and subsequent recovery. It drew together current data to assess the strengths and weaknesses of the South West business sector and looked at prospects for the future.

The Economy Module also produces a range of Special Publications. These cover a broad range of topics including economic growth, GVA, the labour market, recession and business.

Regional Accounts

The Regional Accounts are an interactive impact and analysis tool published by the Economy Module.  They use the best sources of published and unpublished data to give detailed data at the regional and sub-regional level. They provide time series data for key economic statistics and they are an economic impact tool.  This tool can be used to value the direct and indirect (multiplier effects) consequences of change within the economy, such as the creation of new jobs within a sector. 

Place

Listed below are various resources available which provide data and intelligence at a sub-regional level which can be used in supporting an application.

The Economy Module's Spatial Review looked at the key issues facing areas in the region. It provided a snapshot of economic conditions when it was produced in early 2011.

The South West Observatory has a Local Profiles resource which signposts information specific to local areas within the South West. This page also includes sub-regional statistical briefings.

The Office for National Statistics (ONS) has produced a suite of local profiles at local authority level and below, on a number of topics including business, people, work, and education. These are available through the Neighbourhood Summary section of the Neighbourhood Statisticswebsite.

The Local Intelligence Networks (LINs) of the SW Observatory provide area specific information for the South West. Their websites and contact details can be accessed via the Local Intelligence tab at the top of the page or by selecting one of the links below:

This information was prepared by members of the South West RDA’s Economics & Evidence team who provided services to the Economy Module of the South West Observatory until the end of 2011.

The analysis did not necessarily represent the views or policies of the Agency. The website has been compiled from sources believed to be reliable and as timely as possible.
Useful Links
RGF Guidance - details regarding the application process for RGF bids, including the guidance and application forms, can be found on the guidance section of the Regional Growth Fund website.
Green Book - the Green Book is HM Treasury guidance for Government, setting out a framework for the appraisal of all projects.  All Regional Growth Fund applications will be assessed against this framework.  It sets out the key stages in the development of a proposal from the articulation of the rationale for intervention and the setting of objectives, through to options appraisal and implementation.

Economic Assessments
- This guidance outlines the key principles behind compiling an economic assessment.

Summary of Bids for the Regional Growth Fund (BIS)

Discussion paper on LEPs and RGF available from LGIU (January 2011)