The creation of this Local Development Strategy (LDS) has been a true collaborative effort,

reflecting all that is good about the LEADER approach to local development. Thanks are

due to all those who have been involved in the compilation of this document, especially the

Making it Local Programme Management Group; all those who came along to consultation

events, submitted projects or spoke with us as we developed the strategy. Special thanks

are due to the Steering Group who guided the process and EMB Consulting and the

Making it Local staff team for bringing all the evidence and ideas together to produce this

Local Development Strategy

Sections

Page

1 Making it Local – Our Partnership 1

1.1 Membership 1

1.2 Structure and decision making process 2

1.3 Local Action Group staff 3

1.4 Equal opportunities 4

1.5 Community and consultation activity 4

1.6 Training

5

2 Making it Local – Our Area

5

3 Making it Local – Our Strategy 7

3.1 Our evidence base – strengths, weaknesses, opportunities & threats 7

3.2 Local priorities and alignment with LEADER and LEP 16

3.3 Programme of activity 19

3.4 Targets, results & outputs 24

3.5 Sustainability appraisal 26

3.6 Co-operation activity

26

4 Making it Local – Our Management and Administration 27

4.1 Accountable body 27

4.2 Project development and assessment procedures 27

4.3 Claims and payments 28

4.4 Communications 28

4.5 Monitoring and evaluation 29

4.6 Action plan

29

5 Making it Local – Our Financial Plan 29

5.1 Expenditure for each year by measure 29

5.2 Funding profile 30

5.3 Use of grants & procurement 30

This LDS is endorsed by a number of organisations that have all written letters or emails of support acknowledging the value of Making it Local and the benefits a new programme will bring to the area.

373 Business Group Bicton College Blackdown Hills Artists & Makers Blackdown Hills Business Association Blackdown Hills Parish Network Business Information Point Community Council Devon Community Council Somerset Cosmic Country Land & Business Association Devon Local Nature Partnership

East Devon District Council FWAG South West Heart of Devon Tourism Partnership Federation of Small Businesses Jurassic Coast Mid Devon District Council National Farmers Union Natural England Otter Valley Association South Somerset District Council Taunton Deane Borough Council

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1. Making it Local - Our Partnership

Making It Local (MIL) has an excellent track record, having successfully run the previous LEADER programme. Our area is based on the parishes of the Blackdown Hills and East Devon AONBs and the surrounding gateway market towns. Our strong grass roots approach to strategy development and delivery puts us in a robust position to build on our past success and deliver an efficient and effective LEADER programme in this current round. The content and refinement of our Local Development Strategy (LDS) has been influenced by the findings of the evaluation of our 2007-2014 programme, our economic baseline analysis and our extensive consultation process. Our overall aim is to use the outstanding environmental quality and local human potential as a ‘springboard’ for sustainable economic growth.

1.1 Membership

1.1.1 The Local Action Group

The Local Action Group (LAG) is the partnership body that will deliver the LEADER programme in the MIL area. The LAG is made up of individual stakeholders from a diverse range of businesses and organisations representing social, environmental and economic interests across the whole of the area. Membership of the LAG is open to all and has steadily increased throughout the duration of the previous LEADER Programme to over 900 people, as interest and engagement with the programme has developed. Membership of the LAG is managed via an updated database, and members are kept informed of the programmes progress and other relevant information via regular e-newsletters, e-bulletins and Twitter. The LAG holds an annual event to raise awareness of the programme, showcase successful projects that have received funding and gain feedback from LAG members on the delivery plan. This event incorporates a popular funding fair giving LAG members the opportunity to meet external grant bodies to discuss potential projects and match funding. The event, which usually attracts approximately 80 people, also provides an occasion for LAG members to network with people across a variety of sectors, which is a rare opportunity in the rural MIL area. We believe that through wide LAG membership and meaningful engagement we embody, very clearly, the principles of LEADER, in particular the ‘bottom up’ approach to the elaboration and implementation of strategies and beneficial projects.

1.1.2 The Programme Management Group

We will deliver efficient and effective management of our programme through a Programme Management Group (PMG). As the decision making body and management group, the PMG will comprise the appropriate range of skills, knowledge and interests needed to deliver the programmes priorities. As well as representing sector based priorities such as agriculture, forestry and tourism, we will also aim to represent our specific thematic priorities of young people and older people, along with our enhanced geographic area. The PMG will consist of both voting and non-voting members. Of those voting members there will be no fewer than 10 and no more than 13 people, with at least 50% of those members not being from public sector organisations. Supporting organisations, such as the Accountable Body also have a place on PMG, they do not have a vote but attend meetings to assist with the running of the programme.

Our existing PMG is made up of representatives from a variety of public and private sector organisations, all of whom agreed to remain in place during the transition period to oversee the development of the new LDS. The following knowledge and skills are required of all PMG members:

Knowledge of the MIL area; Understanding of the aims of MIL and the wider Rural Development Programme (RDP); Particular knowledge or experience in one or more of the sectors the programme encompasses; Understanding of special landscapes and how they can be used to promote and develop

sustainable economic growth; Ability to make informed decisions as a member of the group; and Ability to think strategically and apply the principles of sustainability.

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Table 1: Voting Members of the current PMG

Sector Person Organisation

Blackdown Hills AONB1 Paul Diviani Chair of Blackdown Hills AONB Partnership / Leader of East Devon District Council

East Devon AONB Mike Ellingham East Devon AONB Partnership

Business & community sector Heather Stallard Blackdown Hills Business Association and Blackdowns Support Group

Wood and Forestry John Greenshields Blackdown Hills Woodland Association

Business Networks David Hinshelwood Business Information Point

Farming Ian Todd Smallicombe Farm, Devon

ICT and Social Enterprise Kate Doodson Project Cosmic

Natural Environment David Crabb Natural England

Community & Public Sector Jamie Buckley East Devon District Council

Micro Business Eric Downer Local businessman – Devon

Micro Business Peter Naylor Local Businessman – Somerset

If successful with the bid, a new PMG will be formed made up of representatives from the LEADER priority sectors. We are confident of being able to engage an appropriate grouping of people with the knowledge and experience necessary to sit on the PMG and support our LDS. During the extensive consultation process a number of people from sectors such as the arts, micro-businesses, farming and young people have expressed interest in having more involvement with MIL.

Candidates wishing to sit on the PMG will be asked to outline their skills and experience in writing, along with the sector/area of interest they wish to represent on the board. This information will be circulated to the wider LAG prior to the election which will take place in December 2014 at the annual LAG meeting, where the Chair will also be appointed. The Chairman will stand for a 2 year period and can then be replaced or re-elected from among the PMG. If further recruitment to the PMG is required during the 6 years to cover members leaving, or those who regularly do not attend, additional members who fit within the structure above will be selected from the wider LAG group, on a like for like replacement basis. If the PMG feels further representation is required from a new sector, they would seek to select someone from the wider LAG, following consultation with Defra and ensuring the balance of gender and public / private sectors is not altered.

1.2 Structure and Decision Making Process

Figure 1 illustrates our structure. An explanation of our structure is detailed in Table 2.

Figure 1: MIL Structure

THE LAG

THE PMG

Management

Group

THE STAFF TEAM

ACCOUNTABLE

BODY

Devon County

Council

Social

Interests

Economic

Interests

Environmental

Interests

1 AONB – Area Of Outstanding Natural Beauty

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Table 2: MIL Structure

Element of Structure

Roles and Responsibilities

LAG Act as an ambassador for the fund by representing the interests of the sectors and stimulate interest in the programme; Devolve decision making responsibilities to the PMG; Supply people and thus expertise to the Programme Management Group; Be a consultative body, especially for development of the LDS, Annual Delivery Plan and monitoring effectiveness of the work; To help generate projects and activities, which fit the overall aims of the programme, and meet the needs of the area; and To supply volunteer project appraisers to assess applications.

PMG The wider LAG devolves all decision making to the PMG. Our PMG will oversee the implementation of the programme including the final decision making on grant applications and the delivery of outputs in line with the Annual Delivery Plan and LDS. This group will meet bi-monthly to make final decisions on project applications based on their fit with the programme aims and priorities, financial viability, identified project need, clear targets and objectives, sustainability, innovation, additionality and displacement, project management and delivery and risk assessment. This will also include the structure and process for a small grants decision sub panel.

Accountable Body

Devon County Council (DCC) was the accountable body for MIL in the last programme and will continue to be the accountable body for this LDS. DCC will provide and oversee systems to ensure a rigorous approach to financial control and compliance.

Staff Team A small staff team will deliver and support the LDS. Details of the team are provided at section 1.3. The team will also be supported by voluntary appraisers that will assess each project/bid.

Our decision making process will be open and transparent and based on the procedure used in the previous programme with due reference to the National Operation Manual, when this is finalised. Section 4 of our LDS provides further detail on the LAG systems processes and a flow chart.

Under the auspices of the PMG, a separate Small Grants Decision Panel will be set up to consider grant applications under £10k on a monthly basis. The Small Grants Panel will consist of 4 members of the PMG and 3 wider LAG members who have knowledge and skills relevant to the programme. These 3 LAG members will have local knowledge as well as specific expertise, for example representatives from business support and community development organisations.

Issues such as conflicts of interest, equality and general participation in the LAG and PMG will be governed by a Code of Conduct to be signed by all participants in the process. General Principles of the PMG Code of Conduct will include:

LAG board members will be asked to declare any conflicts of interest at the beginning of meetings or as soon as they become apparent, and these shall be minuted;

General (i.e. non-financial) conflicts of interest will be minuted and a record of members’ interests kept. The member concerned will normally be able to remain for discussion of the item, unless a majority of the Group indicates otherwise;

PMG members cannot sit on the decision making panel when it is considering an application from any project in which they may benefit financially, have a current involvement, or from which they might stand to benefit in the future;

A Member shall not use their position as such, directly or indirectly, for personal gain or political purposes.

All applicants will receive structured, fair and consistent feedback on their projects. The Programme Manager will provide feedback to the applicants on the basis of comments agreed by the PMG.

1.3 Local Action Group Staff

We are mindful of Defra’s commitment to ensuring efficient and effective processes and Value for Money in programme management and also of the findings of our own evaluation that proposed improvements in this area. To this end, we are planning a high level of collaboration with the adjacent REAL Devon LAG which will extend to sharing staff. Table 3 provides the details of our proposed staff team.

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Table 3: The Staff Team

Staff Member

Area Coverage

Terms Summary of Roles and Responsibilities Employer Host/ Location

Reports to

Programme Manager

MIL and REAL Devon

5 days per week until 2018 and then 4 days per week

Ensures local accountability, communications, smooth delivery of Programme and provides technical direction and advice to the LAG. Responsible for the management, monitoring and reporting of programme reach and progress in line with the Annual Delivery Plan. Ensures compliance with EU, Defra & DCC systems and structures. Ensure equality and sustainability is embedded in the programme. Attend LEP wide LAG Managers meetings

DCC Blackdown Hills AONB office in Hemyock

PMG, wider LAG and DCC

Programme Admin/ Claims Officer

MIL and REAL Devon

5 days per week until 2018 and then 4 days per week

Provides first point of contact and admin support to the Programme Manager. Undertakes first checks on project financial and monitoring claims and returns. Organises bi-monthly PMG meetings for each LAG Maintains communications for the programme.

DCC Hemyock Manager

Programme Finance Officer

MIL and REAL Devon

Part time (1-3 days per week)

Actions project financial and monitoring claims and returns. Provides up-to-date financial reports and support to the programme.

DCC Primarily DCC, Exeter

DCC

1.4 Equal Opportunities

MIL will operate under the overarching principles of the constituent public bodies’ equal opportunities policies and proofing processes in all aspects of programme development, management and implementation. We recognise that the needs of women, older people, disabled people, people from minority ethnic groups, LGBT (lesbian, gay, bi-sexual and transgender) people and faith groups living in the MIL area can be different from those living in urban areas. These different needs will be considered at all stages of our programme. Firstly, at strategic level, equal opportunities will be a cross cutting theme of our LDS. Secondly, at management and operational level, we will have due regard to equal opportunities both in our attraction of LAG members and recruitment for our PMG, staff team and appraisers. All information will be accessible to people with sight problems and comply with standards recommended by RNIB. Every effort will be made to provide information in an appropriate accessible format on request such as in other languages and/or alternative media. We will monitor our members and staff team to be able to record and report on equal opportunities issues.

Thirdly, in our work to support our beneficiaries, our information will be fully accessible (as for our recruitment process). For the Programme to be accessible to all organisations in the rural area, there will be sustained publicity of MIL. Our application materials will set out our expectations in terms of equal opportunities including the need to demonstrate adherence to equal opportunities as a cross cutting theme. All applicants will be requested to demonstrate the ways in which they have considered the particular needs of the targeted beneficiaries. This will be followed through in our appraisal process and decision making process.

1.5 Community and Consultation Activity

The development of this LDS has taken a bottom up approach involving extensive consultation with the wider community throughout the existing and extended LAG area. Altogether 227 people attended 20 consultation workshops in a variety of locations:

7 workshops were held with market towns and clusters of parishes to establish what residents and councillors felt were the opportunities and challenges for their area;

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13 sector/thematic based consultation workshops were held to establish the opportunities and challenges those organisations faced within the MIL area. Those workshops included businesses, voluntary and public sector organisations and focused on the following sectors:

o Heritage and cultural tourism o Tourism, walking and wildlife o Farming (3 separate events) o Forestry o Young people o Micro businesses

o Business networks o Skills and training for adults o Food and drink o Rural transport o Creative sector

Table 4: Some of the organisations involved in our consultation events

Otter brewery Chard Museum Drill Hall CIC Axe Valley Community College

Seaton Town Team Colyton Biz Sidmouth Business Café Thelma Hulbert Gallery

Ilminster Chamber of Commerce Blackdown Hills Business Assoc. Sidmouth Chamber of Commerce Somerset Skills & Learning

Jurassic Coast Outside Adventures Woodhayes Enterprises King Rollo Films

Otterhead Estate Beer Parish Council Larkbeare Grange Nick Meech Design

Axminster Heritage Centre Business Information Point Rosehill Rooms & Cookery Hall & Hearty Caterers

Blackdown Hills Hedge Assoc. Hush Farms Ottery Food Festival Combe St Nicholas PC

Natural Branscombe Taste of the West Trill Farm Escot Estate

Neroche Woodlanders Chard Town Team Ilminster Forum Monks Yard Conference Centre

Community Council Somerset Take Art Home Energy Centre Uplyme Parish Council

Hawkchurch Village Shop Colyton Parish Council Chardstock Parish Council Beechhayes Farm

South Somerset District Council Taunton Deane Borough Council Mid Devon District Council Devon County Council

In addition to the workshops an online survey was posted on the MIL website, enabling people unable to attend a workshop to take part in the consultation. The wider LAG members were made aware of the survey through an e-newsletter. 89 people responded to our online survey. The data collected from the workshops and survey has identified the opportunities and challenges faced by businesses and organisations in the MIL area, this has informed the local priorities identified in this LDS. In addition, a wide variety of project ideas were put forward by numerous businesses and organisations that could be considered in the new programme.

1.6 Training

Although MIL is an experienced LAG there will be new people involved, PMG members, the staff and appraisers will also need some form of training as outlined below:

Table 5: Training needs

Group Training needs

PMG Understand the aims and objectives of LEADER Understand the priorities, processes and systems of the Making it Local LAG Learn how to make effective and fair decisions

Appraisers Understand clearly the aims and objectives of LEADER and the priorities in the LDS including the cross cutting equality & sustainability issues Eligibility issues How to complete the appraisal form accurately and the level of detail required in each section. Making a fair recommendation

Staff team Claims process, State aid rules Cap D IT system once in place

2. Making It Local - Our Area

The MIL area (Figure 2) is rural with a strong landscape identity encompassing two AONBs (Blackdown Hills and East Devon) with their surrounding market towns and villages, whose residents naturally link with the landscape and the coast. Since the last programme, the MIL area has increased slightly to take in

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additional parishes in South Somerset (including the town of Ilminster) and now extends down to the M5 and the edge of Exeter in East Devon. Our LAG includes the administrative area of East Devon (excluding Exmouth) and parts of Mid Devon, South Somerset and Taunton Deane. It borders with five other potential LAGs; REAL Devon to the West, Western Somerset and Somerset Levels and Moors to the North, and Heart of Wessex and Chalk and Cheese to the East. Figure 2: MIL LAG Boundary

The area has a natural coherence as a landscape, a common experience of socio economic challenges, a reciprocal need between its towns and rural hinterland, and a shared passion to create opportunities to address these challenges that are firmly based on a high quality living, working landscape. The boundary stands scrutiny when viewed externally as an economic sub-region, while also having logic as a community of interests when viewed internally by the potential beneficiaries. The total population is 149,563, of which 51,879 (35%) are in urban areas and 97,684 (65%) are in rural areas. Table 6 lists the wards covered. Table 6: Making It Local Wards

District Ward

East Devon Axminster (Rural and Town), Beer and Branscombe, Budleigh,Clyst Valley, Coly Valley, Dunkeswell, Feniton and Buckerell, Honiton St Michael's, Honiton St Paul's, Newbridges, Newton Poppleford and Harpford, Otterhead, Ottery St Mary (Rural and Town), Raleigh, Seaton, Sidmouth (Rural, Sidford and Town), Tale Vale, Trinity, Whimple, Woodbury and Lympstone and Yarty.

Mid Devon Cullompton Outer, Lower Culm and Upper Culm.

South Somerset Blackdown, Chard Avishayes, Chard Combe, Chard Crimchard, Chard Holyrood, Chard Jocelyn, Ilminster, Neroche, Tatworth and Forton and Windwhistle.

Taunton Deane Blackdown, Monument, Neroche, Wellington East, Wellington North and Wellington Rockwell Green and West.

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3. Making It Local - Our Strategy

3.1 Our Evidence Base - Strengths, Weaknesses, Opportunities and Threats

3.1.1 National Context for our Local Development Strategy

At the time of writing economic prospects nationally, including the economy in rural areas, is looking more positive. A recent report on the rural economy found that, following early signs of recovery being evident in non-farming businesses, this was spreading to the farming industry with expectations of higher sales and profits in the coming year.2 That said, at the time of writing, our consultation would suggest that this is not the case locally for some sectors of the farming community. The economies of rural areas face challenges within the wider environment. The agricultural sector is facing the issue of continuous fluctuations in demand and prices. The reform of CAP may also have a negative impact with potential reduced budgets for agri-environment schemes. Increasing costs in production, especially for utilities, will impact on sectors such as agriculture, food and drink and other manufacturing sectors; all of which play an important part in rural economies, including the Making it Local area.

On a positive note, however, environmental factors and changing consumer knowledge and taste could have a beneficial impact. The increasing knowledge of food miles and food security could help drive demand for local food production. Likewise a growing awareness of environmental issues may help stimulate demand for more sustainable tourism and the ‘staycation’.

Climate change scenarios prepared by the Met Office suggest that patterns of more extreme weather, such as those experienced in the last two winters, are likely to increase in frequency.3 This will impact on rural areas with changing weather conditions having an adverse effect on local communities (e.g. flooding), the natural environment and the agriculture sector specifically.

Rural areas often have an older demographic with the implications that this brings for a tighter labour market and pressure on public services. At the same time, the economic downturn and austerity measures of government have seen a decline in some vital rural services resulting in difficulties for some in accessing facilities and services such as post offices, shops, village halls and public transport.

Government policy remains focused on tackling the public sector deficit as a top priority with a resultant tighter public sector purse. That said, it recognises the importance of smart investment to encourage growth and through its Plan for Growth prioritises some sectors of economic importance to rural areas such as tourism.4 It also has an aspiration to make the UK a world leader in agricultural technology, innovation and sustainability5 with investment through the Technology Strategy Board and its Localism agenda has resulted in the development of the network of LEPs to help encourage local growth within their areas. Investment through Local Growth Funding, European Structural and Investment Funds and indeed this funding through the Rural Development Programme will provide investment (legal issues such as state aid and EU rules and regulations permitting) at local area to help address local issues and help stimulate and encourage growth.

Within this context, the next sections describe the issues facing our area and a summary of our strengths, weaknesses, opportunities and threats (SWOT). The SWOT is based on the most recent evidence and available data for the area, with recognition of the fact that the LAG area is not one consistent administrative boundary and data is not always readily available at output level. The best fit of the most up to date data has been selected to help provide the evidence for our strategy.

2 The Country Land and Business Association and Smiths Gore (2013) CLA / Smiths Gore Rural Economy Index

Quarter 3, 2013. 3 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p4.

4 HM Treasury and Department for Business, Innovation and Skills (March 2011) The Plan for Growth.

5 HM Government (July 2013) A UK Strategy for Agricultural Technologies.

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3.1.2 Making It Local – Our Businesses

Table 7 details the number of employees by business band for those wards in our area. As can be observed, compared with nationally our LAG area overall has a high proportion of its employment in micro, small and medium sized enterprises (SMEs). This is important as research by the ONS shows that SME GVA (gross value added) per employee is on average 8.7% less than employees from larger firms6 and as our LEP’s Strategic Economic Plan stated “smaller businesses find it harder to absorb business advice/support, access funding opportunities and participate in national programmes/opportunities”. 7 Table 7: Number of employees by business band size

Business size

Micro 0-9 Small 10-49 Medium 50-249 Large 250+ Total

Number % Number % 12,957 % Number % Number

Making it Local area 11,729 24% 17,554 36% 12,957 26% 6,691 14% 48,931

England 2,918,870 13% 3,577,855 15% 3,333,851 14% 13,259,442 57% 23,090,018

Source: ONS Business Register and Employment Survey 2012. Note: % is of total employment

Looking at numbers of businesses, Table 8 shows that, our area overall has a high level of micro businesses thus having implications in terms of GVA and uptake of support. Table 8: Business Counts

East Devon Mid Devon South Somerset Taunton Deane Great Britain

Numbers % Numbers % Numbers % Numbers % %

Enterprises

Micro (0 to 9) 5,055 89.2 3,835 92.3 5,790 89.3 3,695 88.0 88.2

Small (10 to 49) 540 9.5 285 6.9 585 9.0 420 10.0 9.7

Medium (50 to 249) 65 1.1 30 0.7 95 1.5 55 1.3 1.7

Large (250+) 10 0.2 0 0.0 15 0.2 25 0.6 0.4

Total 5,670 4,155 6,485 4,200

Source: ONS Inter Departmental Business Register 2013 Note: % is as a proportion of total enterprises. An Enterprise is the smallest combination of legal units (generally based on VAT and/or PAYE records) which has a certain degree of autonomy within an Enterprise Group.

Job density figures represent the ratio of total jobs to population aged 16-64 thus enabling us to compare availability of work across the local area. Table 9 provides data on job density levels in our districts as compared to Great Britain. Both East and Mid Devon have low job density levels whereas South Somerset and Taunton Deane have higher than national job density rates. Table 9: Job Density

East Devon Mid Devon South Somerset Taunton Deane Great Britain

Number Density Number Density Number Density Number Density Density

Job Density 56,000 0.75 31,000 0.65 80,000 0.82 59,000 0.87 0.78

Source: ONS Job Density 2012. Note: Total jobs includes employees, self employed, government-supported trainees and HM Forces

As Table 10 shows, levels of part-time working are high in our area compared with national levels with particularly high levels of part-time working in East Devon. Table 10: Full and Part Time Jobs

East Devon Mid Devon South Somerset Taunton Deane Great Britain

Number % Number % Number % Number % %

Total employee jobs 42,800 21,600 61,200 50,900

Full Time 25,900 60.3 13,300 61.5 40,100 65.4 31,100 61.2 67.2

Part Time 17,000 39.7 8,300 38.5 21,200 34.6 19,800 38.8 32.8

Source: ONS Business register and employment survey Notes: % is a proportion of total employee jobs. Employee jobs excludes self-employed, government-supported trainees and HM Forces

Looking at sectors that are of importance in our area, Table 11 outlines the sectoral composition of our businesses based on Middle Super Output Areas and employee numbers by sector based on wards. It can be observed that the proportion of businesses in Agriculture, Forestry and Fishing is significantly higher in

6 HM Government (March 2014) United Kingdom Partnership Agreement, Draft.

7 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p45.

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our area compared to nationally. The Heart of the South West LEP (HoSW LEP) recognises the importance of this confirming that “Our farms form an integral part of a wider rural economy with close links to food and drink and tourism.”8 Other sectors that are well represented in terms of business count include Construction and Accommodation and Food Services. Of note is that knowledge intensive sectors (e.g. ICT, Professional et. al and Business administration et. al.) are under-represented. With regard to employment by sector, there is a high concentration of employment in Manufacturing, Retail and Heath (and other public sector related sectors). Accommodation and Food Services account for 9.8% of employment, higher than the UK proportion of 7%. Again, knowledge intensive sectors are under-represented. Table 11: Sectoral composition of businesses

Broad Industry group

Business Counts

Employees

MIL No. MIL % England %

MIL No. MIL % UK %

1 : Agriculture, forestry & fishing (A) 1,150 20% 4%

210 0.4% 2%

2 : Mining, quarrying & utilities (B,D and E) 15 0% 1%

575 1.2% 1%

3 : Manufacturing (C) 260 4% 5%

8,111 16.6% 8%

4 : Construction (F) 625 11% 10%

3,096 6.3% 5%

5 : Motor trades (Part G) 195 3% 3%

927 1.9% 2%

6 : Wholesale (Part G) 225 4% 5%

1,901 3.9% 4%

7 : Retail (Part G) 585 10% 11%

6,718 13.7% 10%

8 : Transport & storage (inc postal) (H) 170 3% 3%

1,342 2.7% 4%

9 : Accommodation & food services (I) 375 6% 6%

4,813 9.8% 7%

10 : Information & communication (J) 215 4% 7%

1,095 2.2% 4%

11 : Financial & insurance (K) 75 1% 3%

1,009 2.1% 4%

12 : Property (L) 180 3% 4%

606 1.2% 2%

13 : Professional, scientific & technical (M) 605 10% 15%

2,468 5.0% 8%

14 : Business administration & support services (N) 335 6% 7%

1,459 3.0% 8%

15 : Public administration & defence (O) 30 1% 1%

1,885 3.9% 5%

16 : Education (P) 130 2% 3%

4,161 8.5% 9%

17 : Health (Q) 260 4% 6%

6,219 12.7% 13%

18 : Arts, entertainment, recreation & other services (R,S,T and U) 350 6% 7%

2,336 5% 4%

Total 5,780 100% 100%

48,931 100% 100%

Source: (1) ONS Inter Departmental Business Register 2013 for Business Counts. (2) ONS Business Register and Employment Survey 2012 for Employee Numbers

Tables 12 and 13 detail the number of business births and deaths per head of population in 2012 and business survival rates (from 2007) respectively. As can be observed, for 2012, all of the LAG areas have slightly lower rates of business births and the equivalent or slightly lower rates of business deaths than nationally. On five year survival rates since 2007, all areas have higher than the England rate. Whilst this might be a sign of good business competitiveness, it can represent low ‘churn’ and a lack of dynamism in the economy. In addition, the HoSW LEP is one of the worst performing LEPs on standard measures of innovation9, business support take up is low. Table 12: Business Births and Deaths

Business births 2012

Per head of working

population Business

Deaths

Per head of working

population

East Devon 455 0.006 520 0.007

Mid Devon 265 0.006 315 0.007

South Somerset 500 0.005 590 0.006

Taunton Deane 410 0.006 435 0.006

England 239975 0.007 223800 0.007

Table 13: 5 Year Survival Rates since 2007

5 year survival rate for businesses founded in 2007

(%)

East Devon 53.2

Mid Devon 50.0

South Somerset 50.4

Taunton Deane 46.7

England 44.4

Source: ONS Business Demography 2012 Source: ONS Business Demography 2012

8 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p4.

9 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p8.

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GVA levels for our area are lower than national rates. Indeed in a recent report10, our LEP was ranked in the bottom ten of all LEPs for GVA per head in 2012. We have low levels of productivity. GVA/job performance shows Devon and Somerset at 82% and 84.5% respectively of the UK levels in 201111

.

Table 14: GVA Modelling

GVA per FTE (£) based on 2010 prices

2014 2015 2016 2017 2018 2019

East Devon 38229.8 39090.0 40007.9 40907.4 41852.1 42837.2

Mid Devon 38555.6 39471.5 40431.5 41378.3 42390.7 43465.7

South Somerset 43560.9 44639.8 45793.9 46940.5 48137.4 49383.7

Taunton Deane 43162.7 44115.7 45156.3 46185.7 47268.1 48434.4

UK 50441.2 51591.5 52872.6 54155.2 55522.3 56967.7

Source: Oxford Econometrics Heart of the South West LEP model (Jan 2014)

Modelling carried out for the LEP indicates that whilst GVA per full-time equivalent (FTE) will grow in all the LAG areas over the next five years, it will still remain below the national rate. Table 14 provides the detail.

Finally, in looking at the economy overall, the UK Competitiveness Index 201312, ranks the competitiveness of UK local authority areas based on the following factors:

Input factors – Economic activity rates, business start-up rates, number of businesses, proportion of working age population with NVQ level 4 or higher and proportion of knowledge-based businesses;

Output Factors – GVA per head, productivity and employment rates; and Outcome Factors – Gross weekly pay and unemployment rates.

Table 15 outlines rankings for the 2013 Index (1 being highest). Of a total of 359 areas, the LAG’s districts rank predominately in the middle-lower band in terms of competitiveness. It can be observed that over time (2010-2013) the competitiveness of East Devon has improved whilst all other areas have declined.

Table 15: Competitiveness of LAG Local Authorities

District 2010 Rank 2013 Rank

East Devon 89.9 288 92.5 227

Mid Devon 96.3 185 91.9 238

South Somerset 97.2 176 94.6 197

Taunton Deane 102.9 108 95.6 177

Source: UK Competitiveness Index 2013 from Huggins and Thomson, 2013

Of relevance, particularly to the LEADER policy priorities, a report by Somerset County Council13 confirms the importance of the food and drink sector for Somerset’s economy. In 2011 this sector in Somerset was worth just under £580million, accounting for 7% of the County’s overall economic output. The sector is more significant than at national level, where it contributes 4.2% of the UK’s GVA. The GVA of the sector is projected to grow by 48% between 2011 and 2030, when it is expected to be worth just over £858m. Despite this, the sector exhibits relatively low productivity in comparison to other sectors. A recent study on Devon’s food economy14 reported that it is larger in relative terms than the food economy of most other English counties, accounting for 13% of GVA in Devon compared to 7.6% for Great Britain. In terms of improving productivity, key areas identified in the report, relate to sales, marketing and cost effective distribution. Nearly half the online respondents reported they would like to change the way they sell their products over the next three years, to make greater use of the internet, mail order; wholesalers, distributors and farm shops. The report also cited opportunities in the local and home food market as well as the global food market and export markets that were viewed positively by many respondents as offering significant opportunities. In addition, the recent launch of the government’s £400 million Plan for Public Procurement states that from 2017, all of central government will commit to buying fresh, locally sourced, seasonal food, so that all food that can be bought locally will be bought locally. This will provide opportunities within the UK for local farms in a position to respond.

The management plans of the two AONBs for the area also cite issues and opportunities in relation to LEADER policy priorities for business sectors such as:

10 Office for National Statistics (April 2014) GVA for Local Enterprise Partnerships, 1997-2012. 11

Office for National Statistics (Updated July 2013) Subregional Productivity. 12

Huggins, R. and Thomson, P. (2013) UK Competitiveness Index 2013. 13

Somerset County Council (July 2013) Somerset’s Food and Drink Sector. 14

Lobley, M., Trail Thomson, J. and Barr, D. (June 2012) A Review of Devon’s Food Economy. CRPR Research

Paper No. 34. University of Exeter. Centre for Rural Policy Research.

11

The large number of small and micro enterprises in their area which bring a wealth of talent but, as stated above, bring challenges in terms of engagement and productivity;

The increasing number of farmers seeking to supplement incomes by diversifying into non-agricultural activities to provide a more stable/reliable income;

Opportunities for rural tourism particularly through using the natural environment, spreading the tourism season to the shoulder periods of spring and autumn and ‘green’ tourism experience;

The opportunity to connect people and place in culture and heritage activity (natural and built/historic) but the limitations on funding, particularly for the historic environment; and

The increasing value of woodland and the increasing wood fuel market offers opportunities to bring more small woodlands into positive management.

3.1.3 Making It Local – Our People

As stated in section 2, the population of our LAG area is 149,563. Table 16 details the age structure for our population and its comparison with England. Our area has a much older demographic than nationally and a smaller percentage of residents of working age.

Table 16: Age Structure

Source: Census 2011

England MIL Area

Number % Number %

Age 0-15 10,022,836 19 23,831 16

Age 16-64 34,329,091 65 84,906 57

Age 65 and over 8,660,529 16 40,826 27

Total 53,012,456 149,563

Further, current population projections confirm that the proportion of older people will increase and the proportion of working age people will decrease between now and 2021.15 This is a particular issue for the farming sector/traditional industries. The failure to retain young people can result in these skills diminishing.

As Table 17 shows, we have high levels of economically active residents, high levels of self-employment and low levels of unemployed people when compared to national levels. The high level of self-employment can be seen as a positive factor in terms of entrepreneurialism, however, coupled with high levels of part time working it can also signal a lack of full time employment opportunities. This can have implications for lower wages/income (see below) and ‘in work poverty’16. Table 17: Employment and Unemployment

East Devon Mid Devon South Somerset Taunton Deane Great Britain

Number % Number % Number % Number % %

Economically active (1) 58,900 79.3 39,400 81.3 79,800 81.6 54,200 81.5 77.4

In employment (1) 56,900 77.1 38,100 78.4 77,600 79.3 52,900 79.5 71.5

Employees (1) 44,700 61.2 29,700 63.5 62,500 65.1 46,400 70.6 61.2

Self Employed (1) 12,200 16.0 7,400 13.9 14,000 13.1 5,900 8.1 9.7

Unemployed (2) 2,200 3.7 1,700 4.4 3,600 4.4 3,100 5.5 7.5

Source: ONS Annual population Survey January 2013-December 2013. Note 1: Numbers are for those aged 16 and over, % are for those aged 16-64. Note 2: Numbers and percentage are for those aged 16 and over. % is a proportion of economically active.

Table 18 shows, earnings based on both workplace and residence levels are low in our area.

The average earnings over all of our area districts are below that for the South West and Great Britain. Earnings in mid Devon are particularly low.

Table 18: Earnings by Workplace and Residence

Area

Gross weekly pay (workplace measure)

Note 1

Gross Weekly Pay (residence measure)

Note 2

East Devon 437.0 472.4

Mid Devon 431.5 440.8

South Somerset 466.6 478.6

Taunton Deane 467.8 483.6

Average over MIL districts 450.7 468.85

Great Britain 517.8 518.1

South West 480.0 485.1

Source: ONS Annual Survey of Hours and Earnings – workplace and resident analysis Note: (1) Median earnings in pounds for employees working in the area (2) Median earnings in pounds for employees living in the area

15

Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p23. 16

Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p58.

12

A smaller proportion of our population are economically inactive compared with national figures. On reasons for economic inactivity, it is challenging to be able to extract this information for local areas but what we can elicit is that in both East Devon and South Somerset a higher than national proportion of those who are economically inactive are retired (East Devon 42.5%, South Somerset 28.7%, Great Britain 15.1%). Also, in South Somerset 22.3% of those that are economically inactive are long term sick, compared to the Great Britain proportion of 21.8%.17

Looking at young people specifically, Department of Education figures for young people that are not in education, employment or training (NEET) for local authorities cited 1,360 young people aged 16-18 that are NEET in Devon and 870 in Somerset. As a proportion of those 16-18 year olds known to the local authority this equates to a rate of 5.5% for Devon and 5.0% for Somerset, compared to national rates of 5.3%.18 Given the tight labour market in our area, addressing the NEET issue to ensure the maximum number of young people are active in the labour market, and ensuring that there is a match between employer skill needs and young people’s skills will all be of prime importance. In terms of qualifications for people in our area, Table 19 outlines the qualifications achieved for residents in each of our districts. East Devon performs relatively well with a greater rate of high level qualifications and a lower rate of people with no qualifications. All other areas under perform at higher levels of qualifications, particularly Level 4 and above. This reflects comments from employers in our area who report difficulties in recruiting people with the right skills. Table 19: Qualifications

Individual level East Devon Mid Devon South Somerset Taunton Deane Great Britain

Number % Number % Number % Number % %

NVQ4 and above 29,100 40.4 12,600 28.2 24,700 26.5 20,600 32.2 35.2

NVQ3 and above 45,300 63.1 25,000 56.3 52,800 56.8 34,500 53.9 55.8

NVQ2 and above 56,700 79.0 32,200 72.5 71,500 76.9 50,700 79.3 72.5

NVQ1 and above 65,700 91.5 36,600 82.4 83,200 89.5 57,900 90.5 84.4

Other qualifications # # # # 4,400 4.7 3,600 5.6 6.3

No qualifications 4,500 6.2 4,800 10.8 5,400 5.9 # # 9.3

Source: ONS Annual Population Survey Jan 2013 – Dec 2013 # Sample size too small for reliable estimate. Notes: Level and % are for those aged 16-64. % is a proportion of resident population aged 16-64.

3.1.4 Making It Local – Our Place

Our place is abundant in its natural assets and environment. Devon Local Nature Partnership (LNP) identified three types of ‘Ecosystem Services’ obtained from the natural environment:

Provisioning Services – such as resources, fish, honey, livestock, water, fuel, timber, minerals; Regulatory Services – such as pollination, flood control, carbon storage, improving water, soil and

air quality; and Cultural Services – including recreation, landscape and cultural heritage.

The Devon LNP recognises the challenges faced by farmers and aims to work together on concepts such as sustainable intensification and high nature value farming, it will also encourage the management of woodland and best practice in the wood and timber sector. Likewise the Somerset Local Nature Partnership has recognised the importance of local food and has placed an emphasis on quality local food and the importance of ensuring the infrastructure is in place to support local production, processing, distribution and marketing. The Somerset LNP has also acknowledged the importance of the natural environment as a place for leisure activities that improve the health and wellbeing of residents. Outdoor pursuits like walking, cycling and water sports are also an added attraction for tourists and can help increase visitor numbers to the area.

These ecosystem services were identified by our LEP as important, given the significance of bedrock sectors such as agriculture (and fishing), tourism and food and drink, as well as the wider regulatory services (such as flood control).19 The key ecosystem service opportunities for the core of this area are

17

ONS Annual Population Survey January 2013 - December 2013. 18

Department for Education (End 2013) 16-18 year olds that NEET and not known by local authority. Note: England figure developed as sum of all regions. 19

Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p39.

13

exampled in the recently produced profile for the Blackdowns National Character Area (NCA197)20, which is made up from around 90% of the two AONBs and links a common range of opportunities to maximise the value of our environment for its economy and people. To the south the East Devon Area AONB is characterised by intimate wooded combes, vast areas of heathland, productive and fertile river valleys of the Axe and Otter and breathtaking cliffs and hilltops, it also includes the Devon section of the Jurassic Coast - England's first natural World Heritage Site.21 The Blackdown Hills AONB forms a tranquil, beautiful, and relatively isolated landscape on the Devon and Somerset border. Steep ridges, high plateau, valleys and springs create a charming mosaic of countryside dotted with farms, villages and ancient features. This special place is a living working landscape shaped by many centuries of farming activity with important and diverse habitats existing alongside working communities. Spectacular geology creates an exceptional environment where rare plant, insect and invertebrate species can flourish.22 The LAG area has some 2,753 ha that are Sites of Special Scientific Interest and National Nature Reserves. As stated above, woodlands are a major part of the area with the East Devon AONB being amongst the most wooded AONBs in England.

Both AONB partnerships have identified objectives and priorities for the rural economy which work in tandem with a sustainable environment and could help capitalise on those ecosystem services identified by the Devon and Somerset Local Nature Partnerships. The East Devon AONB has an economic objective to have ‘A sustainable rural economy that serves to conserve and enhance the special qualities of the landscape’ with specific priorities around local produce/markets and supply networks and supporting local businesses in the development of the environmental economy and complementary programmes.23 The Blackdown Hills AONB has an economic objective to have ‘A sustainable rural economy that is based on the resources of the AONB and conserves and enhances the natural beauty of the Blackdown Hills’ with specific priorities around rural diversification, sustainable employment opportunities, sustainable tourism and initiatives that achieve economic, social and environmental objectives.24 Our LAG programme will help contribute towards these aspirations.

Transport and connectivity are identified as being vitally important to the LEP area overall, as peripherality and distance from markets has a direct and proven correlation with productivity. 25 The LEP pointed to the fact that lack of transport to access employment and training can present a significant barrier to social inclusion, particularly for young people, the elderly and those without access to a car,26 an issue that frequently arose in our consultation events. In analysing Indices of Deprivation 2010 and the Lower Super Output Areas in our LAG, we can identify two domains of particular relevance:

Barriers to housing and services where our area ranks in the top 31% most deprived; and Wider barriers to services where our area ranks in the top 40% most deprived.

The evidence base27 for the LEP and in the consultation for our LDS, digital and mobile infrastructure ranked highly as both current constraints and potential enablers of business growth. Whilst rural areas will benefit from investment in rural connectivity in the UK, which will deliver superfast broadband to at least 90% of premises by the end of 2016, further investment will be required to deliver superfast to the remaining premises not covered by the current programme.28 The most remote areas in our LAG may be left behind in being able to access and make best business use of superfast broadband. In addition, it is known from the consultation that businesses in our area are not fully exploiting the technology available to them for business gain.

Housing affordability in East Devon is a particular challenge with prices for all types of homes well above that for other parts of rural England.29 Access to employment sites and premises is also crucial and understanding and responding to the particular needs of rural areas is a priority for the LEP. Two initiatives are currently in place to tackle these issues: 20

http://www.naturalengland.org.uk/publications/nca/blackdowns.aspx 21

http://www.eastdevonaonb.org.uk 22

http://www.blackdownhillsaonb.org.uk 23

East Devon Area of Outstanding Natural Beauty Management Strategy 2014-2019. 24

Blackdown Hills Area of Outstanding Natural Beauty Management Plan 2014-2019. 25

Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p8. 26

Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p34. 27

BDUK (November 2013) UK Broadband Impact study, Impact Report. 28

Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p35. 29 Defra Rural Statistics from Land Registry, Price Paid Data. Supplied at Postcode level. April 2012-March 2013

14

The Exeter and East Devon Growth Point aims to sustain the success of the Exeter area and extend the benefits of geographic growth across a wider geographical area. It is expected to deliver 20,000 new homes and over 25,000 jobs up to 2026 with a strong focus on bringing forward strategic sites; and

The Devon and Somerset Rural Growth Network (RGN) which is one of only five national pilots. A key component is the delivery of a network of capital workspace projects as a focal point for the establishment and growth of rural enterprise, complemented with a series of revenue projects to maximise the opportunity.

In terms of energy efficiency, the rural nature of our area means that 31% of homes (20,783) are off the gas grid30 with a significant number being old and hard to insulate, this results in many of our households experiencing fuel poverty. In terms of ranking, of 326 local authority areas (rank 326 is the most deprived for fuel poverty), Mid Devon was highest ranked (313), followed by East Devon (289), South Somerset (280) and Taunton Deane (225). Expected increases in fuel prices in the future mean that addressing energy efficiency both in the domestic and commercial environment will continue to be important. As our LEP identified, the Green Deal and the Energy Company Obligation have the potential to increase take-up which will incentivise uptake in energy efficiency and renewable energy measures, in turn providing an opportunity for our growing low carbon/energy sector.31

3.1.5 Governance

Our LAG is in a strong position to deliver on our LDS from the outset. Having successfully completed a previous programme, we have developed good knowledge, experience and competencies in operating a programme on this scale. In the evaluation of Making It Local 2007-2014 it was found that the programme’s structure had been effective in delivering the programme.

“It was well structured from the outset. It had good programme management and a good programme

management group. The project development workers engaged well with the communities keeping

their boots on the ground.”32

We are therefore in a position to hit the ground running.

30

DECC (2012) LSOA estimates of households not connected to the gas network. 31

Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p41. 32

The DR Company (March 2014) An Evaluation of the Making It Local LAG programme 2007-2014, p37.

15

3.1.6 SWOT Analysis

Summarising the evidence base for Making it Local, Table 19 identifies our strengths and weaknesses and the opportunities and threats that we face. Table 20: SWOT Analysis

Strengths Weaknesses

Business Higher than national job density levels in South Somerset and Taunton Deane. Low rates of business deaths and good survival rates over 5 years.

High proportion of employment/business that are micro and SMEs - low GVA/employee, less likely to access support. Low job density levels in East and Mid Devon. High levels of part-time jobs. High reliance on small number of lower value sectors. Lack of knowledge-based, higher value sectors. BUT symptom of lack of dynamism in economy along with low rate of business births and low innovation. Low levels of GVA - per head and per job. Low productivity. LAG areas rank middle to low on competitiveness. Fragmented sectors with poor collaboration across many industries

People High level of residents that are economically active and high levels of self employment. Relatively well qualified people in East Devon. High numbers of people volunteering to provide a wide range of events, activities and services.

Older demographic – smaller population of working age. Self employment could indicate lack of FT empt opps. Low earnings by workplace and residence measures. Need to address young people that are NEET. Difficulty of recruiting people with right skills. Difficulty for young people to find the right jobs. Low rate of higher level qualifications in all other areas. Mid Devon has high level of people with no qualifications.

Place Abundance of natural assets and high quality environment Landscape allows combination of farming with high quality tourism and food and drink processing. Well known World Heritage site – Jurassic Coast Plenty of unmanaged small woodlands.

Challenges with transport, digital connectivity, access to services and availability of suitable employment sites. Affordability of housing is particular issue, especially in East Devon.

Governance Strong existing LAG partnership with good track record.

Opportunities Threats

Political Focused public investment in priority areas such as growth sectors (including prioritising tourism and agri-environment) and emphasis of localism/local priorities. Recent launch of Plan for Public Procurement of food.

Austerity. Limit on public sector funds/investment. Reform of CAP – increased targeting, reduced budgets for agri-environment.

Economic Positive economic forecasts. Potential UK and global market for food. Two local initiatives; Exeter and East Devon Growth Point, Devon and Somerset Rural Growth Network. Extending tourism season into shoulder periods

Challenges for sectors of economic importance e.g. fluctuating demand and price for agriculture. Rising cost of utilities for food, drink, manufacturing and other services.

Social Forecast growth in population. Increased environmental awareness/knowledge – opportunity for specific sectors – agriculture, food and drink, tourism. Dynamic communities working to safeguard community assets such as shops & pubs

Older demographic and forecast for growth is in older people rather than working age population – pressure on public services and a tight labour market. Decline in many vital rural services. Out migration of young people

Technological Improving productivity and access to markets through superfast broadband – priority for LEP. Better use of internet & social media to promote products & develop new markets

Some of our areas may be left behind on access to and making best use of superfast broadband. Poor mobile phone reception in rural areas. Lack of uptake by small businesses on technological innovations.

Environment Optimise value of natural environment through ecosystems services/environmental goods and services. Climate change – implications for tourism businesses

Climate change – implications for local communities, natural environment and agriculture especially through flooding

Legal Localism Act provides basis for securing basic rural services

Limitations – state aid, EU rules.

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3.2 Local priorities and Alignment with LEADER and LEP

In establishing our local priorities we have adopted a sequential approach that marries the strategic priorities of LEADER and our LEP alongside the specific needs and opportunities for our LAG area. Figure 3 illustrates. Figure 3: Sequential approach to developing local priorities

STEP 1

STRATEGIC CONTEXT

LEP, RDP AND LEADER

STEP 2

OUR EVIDENCE BASE

- the SWOT, Evaluation of previous

programme, consultation process

STEP 3

OUR LOCAL PRIORITIES

- based on context and evidence base

3.2.1 Strategic Context – LEADER and Heart of the South West LEP

Firstly, the guidance from Defra sets out the policy priorities for LEADER and their map to RDP programme measures is set out in Table 20. Table 21: LEADER Policy Priorities and Linkage to RDP Programme Measures

Policy priority Relevant RDP Programme Measure

4. Investments in Physical Assets

6. Farm and Business Productivity

7. Basic Services and Village Renewal in Rural Areas

8. Investment in Forest Area Development and Improvement of the Viability of Forests

Support for increasing farm productivity

Support for micro and small enterprises and farm diversification

Support for rural tourism

Provision of rural services

Support for cultural and heritage activity

Support for increasing forestry productivity

Secondly, the Strategic Economic Plan for the Heart of the South West LEP33 identifies three strategic objectives:

1. Creating the conditions for business growth – infrastructure and services to underpin growth such as transport infrastructure, broadband and mobile connectivity and skills infrastructure;

2. Maximising productivity and employment – stimulating jobs and growth across the whole economy to benefit all sectors including tourism, agriculture and food and drink; and

3. Capitalising on our distinctive assets – utilising its distinctive assets to create higher value growth and better jobs.

In a recent paper34, based on existing guidance from Defra, the LEP set out the ways in which the LAGs in its area might work in tandem with LEP plans to ensure that duplication is minimised, maximum value for money is achieved and that there is a seamless, joined up approach between LAGs and the LEP. MIL has used this report in conjunction with our evidence base to identify the priorities for our area.

3.2.2 Our Evidence Base

Our SWOT analysis points us to: A range of issues that need to be addressed:

o A lack of dynamism, low value economy, low GVA & high numbers of part time jobs; o A tight labour market – with the need for higher level skills in some areas; o Place challenges relating to transport, digital connectivity and access to services and

employment sites; and

33

Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030. 34

Heart of the South West Local Enterprise Partnership (June 2014) EAFRD Review.

17

The potential to:

o Raise productivity and grow jobs in existing sectors; o Capitalise on growing markets at home and abroad e.g. food; o Develop existing and new (high value) sectors based on future opportunities; o Address our challenges through making local connections - business, people and place; and o Realise the economic potential and value of the natural environment.

Evaluation of the last Making it Local programme by the DR company highlighted the types of activities that respondents felt would be of future benefit to businesses in the LAG area. A summary of those are outlined below, as they are in line with the policy and priorities of LEADER, and align with the LEP, these will be considered for the new programme.

Investment in equipment; Premises enhancement; Product development assistance; Small farm diversification support; Encouraging businesses to take up online trading opportunities; Support to implement ICT enhancements; and A small business grant fund.

The results of our consultation process have identified a range of issues to be tackled. Much of these broadly confirmed the findings of our SWOT analysis but with additional emphasis on the following challenges:

Demography – Recognition of an ageing population with a lack of opportunities for young people. Many young people go away to university and do not return; those that do have limited opportunities for quality employment. Young people that do not go to university find it difficult to reach their full potential;

Access – both in terms of transport and digital connectivity and making best use of ICT; Low income levels for the area; Money – in terms of access to finance, cash flow and match funding; Bureaucracy – associated with public sector funding programmes and also planning issues; Time – lack of time and need to make best use of time; and Fragmented working / isolation.

A range of ideas for addressing these challenges were identified through the consultation, a selection are undernoted:

Addressing the demographic issue – providing opportunities for young people, retaining older (or ‘not so young’) people in the labour market and the economic potential of an ageing population e.g. care provision;

Support for local businesses (including social enterprises) on product development, improving productivity and access to markets;

Harnessing the economic potential of the environment; Making more of the tourism potential of the culture and heritage of the area; Ensuring the supply of land and premises for business – creative, cultural, agricultural and the food

sectors were all highlighted as having a need for fit for purpose premises; Developing capacity for social enterprise to address local challenges; Networks / partnerships – greater need for more joined up approach within sectors and

collaboration between sectors including sharing good practice and knowledge transfer; and Energy – sustainable use of energy and potential for renewable energy.

In addition a range of issues and opportunities relevant to specific sectors were highlighted during the consultation process, as outlined in Table 22.

18

Table 22 Opportunities and challenges highlighted by specific sectors

Sector Opportunities Key issues

Business New markets via e-commerce & expanding market towns

Good quality of life / lifestyle

Some existing strong business networks

Expending social enterprise sector

Poor e-marketing skills & knowledge

Difficulty recruiting skilled staff

Poor internet & mobile connectivity

High levels of seasonal employment

Unaffordability of business rates for many small businesses

Culture & Heritage

Collaborative marketing

Wealth of small arts & crafts producers

A number of community heritage projects & volunteers

Potential to strengthen links between heritage & tourism

Wealth of quality information to interpret the landscape

Fragmented sector

Limited exhibition opportunities

Poor marketing skills

Limited affordable work units for arts & crafts

Community & basic Services

Strong & active community groups throughout area

Growing interest from villages in securing future of local shops, pubs & other services

Potential to tap into skills & knowledge of recently retired

Strong market towns acting as economic & social hubs

Same people volunteering for too many projects

Limited or no public transport for most villages

Lack of affordable housing for young people

Farming Wide mix of small farms involved in more than one type of farming

Strong interest in diversification into tourism

High proportion of High Value farmland and potential to increase

Those new to farming often come with experience from other sectors and innovation

Ageing workforce

Little succession planning

Poor marketing skills

Low milk & meat prices

Few farmer networks in the area

Struggling farmers markets

Food & Drink Good quality reputable food & drink producers already located in MIL area

Large number of small producers and businesses

New markets via e-commerce & expanding market towns

Complexity of regulation

Limited processing sites available in area

Poor marketing and e-commerce skills

Few food and drink / farming networks

Struggling farmers markets

Forestry Abundance of small woodlands and hedges

Growing demand for wood fuel

Unmanaged woods and hedges on farms

Small woodlands located on steep hillsides

Accessing private woodland

Cost of specialist equipment

Lack of grants for hedgerow management

Tourism Use of landscape for green tourism businesses

Potential for abundance of walking & cycling routes

Growing interest in wildlife, food and activity tourism

Growth of short break UK holiday sector

Significant number of ‘lifestyle businesses’ with inconsistent opening hours

Poor understanding of visitors needs

3.2.3 Our Local Priorities

Despite progress having been made through investment in previous programmes, much of what the SWOT and the consultation process are telling us is that the broad economic picture for our LAG area is very similar to the position prior to our previous programme. This is not surprising as we cannot expect wholesale change in an area as a result of a programme of this scale and timing. Further, although we are seeing signs of economic recovery now, the effect of the recession coupled with austerity measures has taken its toll on rural areas. Therefore we propose to retain our aim and strategic objectives and to tweak our activities that flow from these based on the current issues that we have identified and bearing in mind the stronger emphasis on jobs and growth within the current programme.

19

The aim and strategic objectives of Making it Local are: In addition we will incorporate 3 cross cutting themes:

Equal opportunities, as highlighted in section 1.4; Sustainability (Social, Economic and Environmental), as highlighted in section 3.6; and Given that, addressing the demographic issue has been highlighted as a key priority in our evidence

base, we have included this as a cross cutting theme for all of our objectives.

3.3 Programme of Activity

3.3.1 Raise Business Performance and Local Employment

Our activity themes in our previous plan included the following: Support for local mechanisms to enable skills development, enterprise development and leadership; Increasing access to markets for local products and services; and Support for exemplar ‘sustainability projects’ which build knowledge and aspiration.

Our consultation and evidence base is telling us that we need to: Business

o Encourage new enterprise development particularly in higher value sectors; o Support existing businesses to improve their productivity and grow jobs; and o Address particular issues for business such as product development, access to markets and

access to finance; People – there is a need to address the demographic challenge that we face by encouraging young

people’s participation in business and retaining the experience and skills of the ‘not so young’; and Place – there is a need to ensure the availability of ‘fit for purpose’ sites and premises for business

use.35 Based on this, we propose to amend our themed activities in line with our evidence.

35

When referring to enterprises and businesses this includes social enterprises

To use the outstanding environmental quality

and local human potential as a ‘springboard’

for sustainable economic growth

1 Raise business

performance and local employment

To increase the number of well

planned, productive, ambitious businesses who create more local

and wider markets.

2

Connect

Communities

To support our

communities and

businesses to make

connections and work

together, to build

local assets and

sustainable solutions

3 Optimise

Sustainable Local Resource Use

To realise the economic potential of the local

environment, both as a resource and as a

marketing tool, as a means to enhance

prosperity and to sustain environmental quality

20

Figure 5 summarises our first objective, our proposed activity themes (split by Business, People and Place priorities) and some sample activities that would fit within this theme. Further examples of the types of activities MIL may fund are outlined below, these are not definitive but are examples based on issues raised in the consultation and on eligible activities for LEADER investment.

Figure 5: Strategic Objective 1: Programme of Activity

MIL STRATEGIC

OBJECTIVE 1

Raise business

performance and local

employment

BUSINESS

ACTIVITY THEME 1.1

Support new and

existing enterprise

development

PEOPLE

ACTIVITY THEME 1.2

Address the

demographic issue – for

the young and ‘not so

young’

PLACE

ACTIVITY THEME 1.3

Support the

development of ‘fit for

purpose’ sites and

premises

SAMPLE ACTIVITIES SAMPLE ACTIVITIES SAMPLE ACTIVITIES

New Product

Development

Rural Supply Chains and

Markets/Marketing e.g.

local food and drink

Access to Finance –

small grants scheme for

micro enterprises - up to

£10k

Encourage young people

to become

entrepreneurs

Encourage the ‘not so

young’ to share their

business expertise -

mentoring

Support farm

diversification

Hubs/workspace for

small business

Sectoral hubs e.g.

cultural, creative and

food sectors

Connect young people

and employers

Business Activity Theme 1.1 - support new and existing enterprise development Support for business start-ups, social enterprises and CICs Agri-tech pilot schemes to promote the use of new technology that improves farm productivity Marketing local products through branding Small-scale on-farm processing to shorten supply chains E-marketing improvements to open up new markets Rural supply chains connecting local producers to local people and businesses.

Business Activity Theme 1.2 – address the demographic challenge Encouragement of young entrepreneurs Schemes to connect young people and employers Encourage the not so young to mentor and share their business experience

Business Activity Theme 1.3 - development of fit for purpose sites and premises Affordable work spaces for artists & crafts people Creation of work space for small businesses and start-ups Support for co-operative community energy schemes amongst the business sector Support for farm diversification into green tourism

We will strongly align these actions with those of the LEP as follows:

We will complement the LEP’s business support activity by running a small grants scheme for businesses (up to £10,000), ensuring that the LEP, particularly providers of the Rural Growth Hub programme are aware of our funds and can signpost appropriate businesses and start-ups to MIL.

We will offer support for Rural Supply Chains and Markets as proposed by the LEP: o Where there is demand, setting up and supporting producer groups and co-operative models

to enable smaller producers to access new markets (such as public sector procurement); o Where there is demand, setting up and supporting local supply chain initiatives serving local

markets; Innovation – although we will not invest in innovation in the way that the LEP will, we will encourage

the use of and sharing of innovative practice through pilot schemes and networking; Rural Renewable Energy Infrastructure – as part of place-based investment in small scale

infrastructure, we may support renewable energy infrastructure. We will only do this, however, where this adds value to investment by the LEP in this area; and

We will link with the LEP’s activities in relation to sites and premises, particularly for the Rural Growth Network, to ensure that we complement and do not duplicate existing plans.

21

3.3.2 Connecting Communities

Our activity themes in our previous plan included the following: Support and promote existing and new co-operative networks and networking methods; Support for communities to develop sustainable local and strategic solutions to access issues; and Co-operation for the development of new renewable technologies.

Our evidence base is telling us that with regard to connecting communities: Business – can have limited time, operate in isolation and could benefit from networking and

sharing good practice; People – as stated in section 3.3.1, there is a need to address the demographic challenge that we

face by encouraging young people’s participation and retaining the experience and skills of the ‘not so young’; and

Place – although our area has an outstanding physical environment, it faces challenges in terms of connectivity (transport and digital) and access to services.

Based on this, we propose to amend our themed activities in line with our evidence. Figure 6 summarises our second objective, our proposed activity themes (split by Business, People and Place priorities) and some sample activities that would fit within this theme. Further examples of the types of activities MIL may fund are outlined below, these are not definitive but are examples based on issues raised in the consultation and on eligible activities for LEADER investment

Figure 6: Strategic Objective 2: Programme of Activity

MIL STRATEGIC

OBJECTIVE 2

Connecting

Communities

BUSINESS

ACTIVITY THEME 2.1

Support new and

promote existing new

and co-operative

networks and networking

methods

PEOPLE

ACTIVITY THEME 2.2

Address the

demographic issue – for

the young and ‘not so

young’

PLACE

ACTIVITY THEME 2.3

Support for communities

to develop sustainable

local and strategic

solutions to ‘place’

challenges

SAMPLE ACTIVITIES SAMPLE ACTIVITIES SAMPLE ACTIVITIES

Collective

marketing

Sectoral and cross

sectoral networks

Social enterprise

networks

Young People’s

networks

Small scale

infrastructure

Developing essential

rural services

ICT investment for

business

Engaging young people

in developing solutions

to ‘place’ challenges

Rural skills mentoring

Business Activity Theme 2.1 - Support new & promote existing Co-operative networks

Collaborative projects that work across sectors Collaborative projects within sectors Social enterprise networks Collective marketing schemes

Business Activity Theme 2.2 – Address the demographic challenge Networks for young people Schemes encouraging older rural crafts people to pass on their skills to young people

Business Activity Theme 2.3 – Support for communities to develop sustainable local solutions Developing shared essential rural services such as community pubs, shops and buildings Provision of mixed use rural facilities e.g. work hubs with cafes or post offices in pubs Creating car-free trails that connect tourism businesses and attractions Supporting businesses in developing and utilising e-systems to improve productivity.

We will strongly align these actions with those of the LEP as follows: Innovation – although we will not invest in innovation in the way that the LEP will, we will encourage

the use of and sharing of innovative practice through our networking and in seeking solutions to business and place based challenges;

22

Digital infrastructure – although our evidence base has identified digital infrastructure as being a key issue for us, we acknowledge the guidance of the LEP in terms of (1) timing to identify gaps in superfast broadband coverage (2) the significant resource/time/capacity required to do this adequately and (3) the resultant risk to our programme and spend profile. We have therefore not included digital infrastructure as a priority for our LDS;

Digital Training – we will not include digital training as a priority but we will support investment for businesses to upgrade and develop their ICT infrastructure and systems. We will also signpost businesses to other support for digital training through the LEP’s EU Structural and Investment Fund resources.

3.3.3 Optimise Sustainable Local Resource Use

Our activity themes in our previous plan included the following: Increase sustainable tourism, recreation and access; Encourage new and sustainable uses of existing natural resources as a driver to economic growth;

and Harnessing the value of the local environment as a ‘product’, particularly through the arts, culture

and heritage.

Our evidence base is telling us that with regard to optimising sustainable resource use: Business – there could be opportunities for business in specific sectors such as tourism and cultural

services and for farm diversification into these sectors; People – as stated in section 3.3.1 and 3.3.2, there is a need to address the demographic challenge

that we face by encouraging young people’s participation and retaining the experience and skills of the ‘not so young’; and

Place – our place is abundant in its natural assets and environment and there is clear potential to better utilise this, particularly the economic benefit of provisioning services. Based on this, we propose to amend our themed activities in line with our evidence. Figure 7 summarises our third objective, our proposed activity themes (split by Business, People and Place priorities) and some sample activities that would fit within this theme.

Outlined below are some examples of possible activities the programme may support. Further examples of the types of activities MIL may fund are outlined below. As stated in section 3.3.1 and 3.3.2, our sample activities are not definitive but are examples based on issues raised in the consultation and on eligible activities for LEADER investment.

Figure 7: Strategic Objective 3: Programme of Activity

MIL STRATEGIC

OBJECTIVE 3

Optimise Sustainable

Local Resource Use

BUSINESS

ACTIVITY THEME 3.1

Develop tourism, cultural

and leisure sectors

PEOPLE

ACTIVITY THEME 3.2

Address the

demographic issue – for

the young and ‘not so

young’

PLACE

ACTIVITY THEME 3.3

Encourage new and

sustainable uses of

natural resources as a

driver for economic

growth

SAMPLE ACTIVITIES SAMPLE ACTIVITIES SAMPLE ACTIVITIES

Walking and cycling

routes

Farm diversification into

tourism, culture and

leisure sectors

Arts, culture and heritage

– interpretation and

promotion

Wood products

Wood fuel

Modernisation/

adaptation of agriculture

and forestry

Engaging young people

in optimising sustainable

local resource use

Engaging young people

in optimising sustainable

local resource use

MIL STRATEGIC

OBJECTIVE 3

Optimise Sustainable

Local Resource Use

BUSINESS

ACTIVITY THEME 3.1

Develop tourism, cultural

and leisure sectors

PEOPLE

ACTIVITY THEME 3.2

Address the

demographic issue – for

the young and ‘not so

young’

PLACE

ACTIVITY THEME 3.3

Encourage new and

sustainable uses of

natural resources as a

driver for economic

growth

SAMPLE ACTIVITIES SAMPLE ACTIVITIES SAMPLE ACTIVITIES

Walking and cycling

routes

Farm diversification into

tourism, culture and

leisure sectors

Arts, culture and heritage

– interpretation and

promotion

Wood fuel and wood

products

Production/marketing of

local produce

Modernisation/

adaptation of agriculture

and forestry

Engaging young people

in optimising sustainable

local resource use

Aspiring young crafts

people

Land based business

start ups

Business Activity Theme 3.1 Develop tourism, cultural & leisure sectors Visitor infrastructure & interpretation Promotion of sustainable heritage, wildlife and cultural tourism Events and festival with cultural and / or heritage links Promotion of year round tourism to increase visitor numbers during the shoulder seasons

23

Schemes that encourage coastal visitors to venture inland Schemes that encourage visitors travelling through the area to Cornwall on A303 & M5 to stop off On-line booking systems

Business Activity Theme 3.2 – Address the demographic challenge Encouragement of young people to learn rural skills Build confidence in young people to set up their own businesses in sustainable sectors Advice and support to farmers and those with traditional rural skills to encourage taking on young

apprentices

Business Activity Theme 3.3 - New & sustainable use of natural resources Support for new products and markets for wood products and wood fuel Increase production of quality high value craft products made from wood or wool Sustainable fish production Processing and marketing of local produce Development of woodlands for recreational and tourism attractions

We will strongly align these actions with those of the LEP as follows: Rural Tourism Assets/Infrastructure – as can be observed, through our activity theme 3.1 we will

invest in those activities that optimise the natural environment in terms of tourism, culture and leisure. We will be mindful to ensure synergy with existing LEP plans; and;

Ecosystem services – we will support activity in relation to Ecosystems Provisioning and Cultural Services.

3.3.4 Summary Programme of Activity

Based on all of the above, Figure 8 summarises our programme of activity showing LEADER’s policy priorities, our strategic direction and the ways in which it aligns with the LEP’s strategic priorities.

Figure 8: Making It Local Programme of Activity

MAKING IT LOCAL

AIM

To use the outstanding environmental quality and local

human potential as a ‘springboard’ for sustainable

economic growth

STRATEGIC

OBJECTIVE 1

Raise business

performance and local

employment

STRATEGIC

OBJECTIVE 2

Connect Communities

STRATEGIC

OBJECTIVE 3

Optimise Sustainable

Local Resource Use

CO

NTR

IBU

TES

TO L

EP

STR

ATE

GIC

OB

JEC

TIVE

S

AN

D P

RO

POSE

D A

LIG

NM

ENT

WIT

H L

EAD

ER

LEA

DER

POLI

CY

PRIO

RIT

IES

STRATEGIC OBJECTIVE

Creating the conditions

for business growth

STRATEGIC OBJECTIVE

Capitalising on our

distinctive assets

STRATEGIC OBJECTIVE

Maximising productivity

and employment

Support for increasing farm productivity.

Support for micro and small enterprises and farm diversification.

Support for rural tourism.

Provision of rural services.

Support for cultural and heritage activity.

Support for increasing forestry productivity.

MA

KIN

G IT

LO

CA

L ST

RA

TEG

IC D

IREC

TIO

N

Cro

ss C

uttin

g - E

qual

Opp

ortu

nitie

s an

d Su

stai

nabi

lity

BUSINESS

PLACE

PEOPLE

Cross

Cutting

ACTIVITY THEME 1.1

Support new and

existing enterprise

development

ACTIVITY THEME 1.3

Support the

development of ‘fit for

purpose’ sites and

premises

ACTIVITY THEME 2.1

Support new and

promote existing new

and co-operative

networks and networking

methods

ACTIVITY THEME 2.3

Support for communities

to develop sustainable

local and strategic

solutions to ‘place’

challenges

ACTIVITY THEME 3.1

Develop tourism,

cultural and leisure

sectors

ACTIVITY THEME 3.3

Encourage new and

sustainable uses of

natural resources as a

driver for economic

growth

ACTIVITY THEME 3.2

Address the

demographic issue –

for the young and ‘not

so young’

ACTIVITY THEME 1.2

Address the

demographic issue – for

the young and ‘not so

young’

ACTIVITY THEME 2.2

Address the

demographic issue – for

the young and ‘not so

young’

Business Support

Small grants scheme up to

£10,000

Rural Supply Chains and

Markets

Where demand exists

Sites and premises

Complementary to LEP Rural

Growth Network

Innovation

As part of networking and

place based solutions

Renewable Energy

Infrastructure

Small scale, complement to

LEP

NOT Digital infrastructure or

training

YES to business ICT

Rural Tourism Assets/

Infrastructure

Optimising natural

environment

Ecosystems

For Provisioning and Cultural

Services

24

3.4 Targets, Results and Outputs

3.4.1 Context

The programme document for the current RDP36 and the National Delivery Framework for LEADER identifies the six LEADER policy priorities and the output indicators for each priority that were to be collected within the new common monitoring and evaluation system (CMES). Subsequently, in August 2014, Defra issued benchmarks for calculating certain outputs associated with the programme. Defra also confirmed that LAGs would not be expected to forecast all outputs for the programme but rather to focus on the following for each policy priority: total RDPE expenditure, number of projects supported and jobs created.

This along with information gathered from our previous MIL programme has helped us forecast outputs for this LDS.

3.4.2 Method for Estimating Outputs for Our LDS

Table 23 outlines the benchmarks that we identified based on the Defra national RDPE programme and the previous MIL programme. Table 23: National and Local Benchmarks

Defra National Benchmarks MIL Cost effectiveness - cost per output for comparable measures

Average grant size

Grant per FTE job created Measure

Average grant size

Grant per business benefitting

Grant per job created

Grant per job safeguarded

Grant per new tourism activity supported

Grant per head population benefitting

Support for increasing farm productivity

29,884 61,011

n/a Support for

micro and small enterprises and farm diversification

19,951 11,931

312 business creation and

devt 4,985 2,848 n/a 7,975 Support for

rural tourism 31,764 32,477 313

Encourageme-nt of tourism

activities 19088 n/a 133,614 33,404 11,619 Provision of

rural services 28,165 55,991 321 and 322

Basic services AND

village renewal 14439

433,160

Grant per village/community

benefitting £48,129 16

Support for cultural and heritage activity

23,378 33,272 323 Conservation

and upgrading

rural heritage 18294

6

Support for increasing forestry productivity

21,788 77,045

n/a

It can be observed that for the MIL programme: There is not a comparable measure for the policy priorities on ‘support for increasing farm

productivity’ or ‘support for increasing forestry productivity; We have identified comparable measures for the remaining four policy priorities;

36

Defra (June 2014) Rural Development Programme for England 2014-2020.

25

We have been able to identify some additional benchmarking data over and above the three core requirements of Defra.

In establishing benchmarks for forecasting our outputs for this programme, our rationale is as follows: Support for increasing farm productivity – in the absence of comparable data from our MIL

programme we will use national benchmarks. We have based investment on 20% of our project fund;

Support for micro and small enterprises and farm diversification – There is a marked difference between the national and local average grant size. Our experience within our LAG suggests that we will achieve better value for money by supporting a range of projects for smaller amounts rather than having a small number of large projects. In addition we are mindful that our LEP will be supporting businesses for larger grants (over £10,000). We propose therefore to make a small upward adjustment to our local average grant size (up to £6,000) but not to take this up to the higher national benchmark. We propose to use the national benchmark for jobs created (in the absence of a local one) and our local benchmark for businesses benefitting and jobs safeguarded. We have based investment on 40% of our project fund;

Support for rural tourism – Again, rather than use the national benchmark we propose to use our lower local average grant level as the benchmark with a slight upward adjustment to £20,000. We propose to use national benchmarks for jobs created (as a more realistic figure) and local benchmarks for jobs safeguarded and new tourism activities supported. We have based investment on 20% of our project fund;

Provision of rural services – We propose to use local benchmarks for average grant size (with a slight upward adjustment to £15,000) and population benefitting and to use national benchmarks for jobs safeguarded. Our local figure for jobs safeguarded is high and unrealistic and we have therefore excluded this from the forecast. We have based investment on 5% of our project fund;

Support for cultural and heritage activity – We propose to use local benchmarks for average grant size (with a slight upward adjustment to £19,000) and population benefitting. We will use the national benchmark for jobs created. We have based investment on 5% of our project fund;

Support for increasing forestry productivity - in the absence of comparable data from our MIL programme we will use national benchmarks. We have based investment on 10% of our project fund.

3.4.3 Outputs for our LDS

Based on the above rationale, Table 24 outlines our forecast outputs for the LDS. Table 24: MIL Outputs

Farm Productivity

Micro/Small enterprises/

farm diversification

Rural Tourism

Rural Services

Culture and heritage

Forestry Total

Total Investment 290,608 581,216 290,608 72,652 72,652 145,304 1,453,040

No. of projects 10 97 15 5 4 7 136

Businesses benefitting

204

204

New tourism activities supported

25

25

Population benefitting

4,527 13,156

17,683

Jobs created 5 49 9 1 2 2 68

Jobs safeguarded 73 9 82

26

3.5 Sustainability Appraisal

With the time and resources available to us in the preparation of our LDS we sought to be time efficient in our sustainability appraisal by applying the principles of sustainable development from the inception of our LDS. Our context for this was the Coalition Government’s vision and principles for sustainability:

1. Living within environmental limits; 2. Ensuring a strong, healthy and just society; 3. Achieving a sustainable economy; 4. Using sound science responsibly; and 5. Promoting good governance

We adapted the government guidance for Local Plans and adopted the following process: Setting the scope for the appraisal; Developing and refining alternatives and assessing effects; Preparing our draft sustainability report (as part of draft LDS); Consulting on the draft; and Finalising the appraisal including any action required.

Our summary findings of the appraisal were as follows: Strategic Direction – there was a good, strong fit between the LDS strategic direction and

sustainability principles with principles 1, 2 and 3 being highly explicit (principle 4 being implicit rather than explicit); and

Programme of Activity – given that this was linked to strategic objectives as set above, the fit with sustainability principles was found to be strong (again - with principle 4 being implicit).

Two recommendations for action were identified: Governance – The LDS contains an outline of the proposed governance model which fits well with

sustainability principles. In developing these structures it is recommended that due cognisance is given to including a good cross-section of potential beneficiaries in the wider LAG and PMG (economic sectors, geographic interests, demographic interests) and that sustainability is part of the training programme for those involved in governance structures;

Applications, appraisal and decision making - Information on all five principles should be imparted to applicants as part of the programme’s guidance to enable them to demonstrate the ways in which their idea fits with sustainability principles. Part of the appraisal and decision making process should include an appraisal of sustainability.

3.6 Co-operation Activity

We propose four levels of co-operation activity: Close collaboration with REAL Devon - MIL is already working closely with REAL Devon, as both

LAG areas adjoin each other, propose to share a staff team and have DCC as their Accountable Body. If both LAGs are successful with their bids, this arrangement will be strengthened and there will be considerable scope to share best practice and have mutually beneficial arrangements that bring about economic efficiencies;

Collaboration with other Heart of South West LEP LAGs - During the last LEADER programme, MIL developed strong working links with other LAGs across Devon and Somerset and will continue to meet with those LAG managers based within the Heart of the South West LEP area to explore collaborative projects.

Collaboration with other LAGs outside the LEP area - Making it Local is adjacent to the proposed Chalk and Cheese LAG and we recognise the potential for some joint projects around the Axminster, Seaton, Sidmouth and Lyme Regis area, particularly relating to tourism as the Jurassic Coast sits across both LAG areas.

Collaboration with LAGs linked to other AONBs – The National Association of AONBs offers an opportunity to develop collaboration projects with other AONBs engaged in LEADER. Making it Local would be particularly interested in developing links where there are common issues and opportunities of interest, most notable being the high landscape and making use of natural resources that benefit the local economy.

In addition to this, we will seek out further opportunities for co-operation nationally and trans-nationally.

27

4. Making It Local – Our Management and Administration

4.1 Accountable Body

Devon County Council (DCC) will continue to act as the accountable body for MIL, and will also assume this role for a new potential LAG; REAL Devon. DCC understands LEADER principles and the processes and procedures involved having successfully carried out the role of Accountable Body for previous LEADER programmes. DCCs previous involvement means that good connections are already in place to ensure the new programme can start quickly and efficiently. In addition to LEADER, DCC has a wide range of experience of project and financial management of external funds. DCC has been and currently is the accountable body for a large number of significant projects, including Cordiale, Renewable Energy 4 Devon, SEACS (Sustainable Energy Across the Common Space) and CAMIS (Channel Arc Manche Integrated Strategy); all of which are EU programmes. DCC was the leading partner in the South West Objective 2 programme and works closely with the LEP and other partners on a number of Government and EU funding programmes. DCC has been frequently praised by external independent scrutiny for its rigorous efficient and effective financial management. In addition to EU programmes DCC is the Accountable body for the Blackdown Hills AONB, which provides an office base for Making it Local.

4.2 Project Development and Assessment Procedures

4.2.1 Project Development

The development of projects will happen through a collaborative process involving networking and partnership working. LAG members will be encouraged to stimulate interest in the programme through their own networks. The Programme Manager will work collaboratively with appropriate officers from relevant agencies and organisations such as the NFU, County and District Councils, AONB teams, Natural England, Community Councils and the Forestry Commission to promote the scheme and inspire interest. In addition the Manager will work with the LEPs Rural Growth Hub to ensure appropriate projects that arise via their events and the GAIN are signposted to Making it Local

Initial enquiries relating to potential projects will be dealt with by the Programme Manager, who will make the first assessment regarding the projects eligibility and readiness to apply for funds. Applicants that meet the initial criteria will be invited to complete an Expression of Interest (EOI) form. Other applicants will be signposted to an appropriate Development Officer from a partner agency, to obtain support and relevant advice regarding match funding and what is required to turn their idea into a potential project.

Over 230 project ideas have already come forward during the consultation process and work is already underway to help some of those organisations further develop their ideas so they are ready and eligible for consideration as soon as possible in January 2015.

4.2.2 Assessment Procedures

The Making it Local assessment procedures will be open and transparent. Completed EOI forms will be assessed by the Programme Manager – state aid / sustainability - to ensure they meet all eligible criteria. Straightforward projects will be invited to complete a full application, whereas more complex projects will be sent to the PMG for feedback. Those applicants fulfilling all the criteria will be asked to complete a full application form. The application will then be passed to two separate appraisers. An appraisal scoring form will be completed and a recommendation made. The appraisers recommendation along with a project report written by the Programme Manager will then be passed to either the Small Grants Panel or the PMG for a decision. An appeals process will be in place for applicants who feel they have been disadvantaged in any way

28

Figure 9: Project Appraisal Process

4.3 Claims and Payments

DCC has been audited and approved by Defra, to ensure that its financial systems are robust and compliant. DCC will receive financial and monitoring returns from the programme, and check to ensure their accuracy. It will oversee the programme's expenditure and financial needs. Financial systems, controls and arrangements will be enshrined in the Partnership Agreement between MIL and DCC as they are with the other large programmes for which the Council acts as the Accountable Body. MIL already has a robust claims process in place, this will be revised to comply with the checks and inspections laid out in the National Operation Manual. Approved projects will receive clear information about the claims process prior to their first claim. All claims will be submitted to the MIL office where they will be initially dealt with by the Claims Officer who will assess against a checklist that all the appropriate paper work and invoices are correct. The Claims Officer will endeavour to resolve any issue that may arise at this point before signing off the claim and forwarding to the DCC Finance Officer. The DCC Finance Officer will complete a final check before authorising payment.

4.4 Communications and Publicity

MIL will build upon our existing communication strategy which makes use of a wide range of communication channels to ensure as many organisations as possible are aware of the programme:

Printed leaflets – distributed via MIL staff, LAG members, AONB teams and appropriate officers employed by Local Authorities and relevant organisations e.g. NFU, Community Councils, Forestry Commission.

Websites - MIL’s own existing website, plus information on partners’ websites including the LEP and the two AONBs;

Word of mouth – Members of PMG and the wider LAG will act as ambassadors for the programme and will help stimulate general interest in the programme;

E-Newsletters – four per year sent to all the LAG members on the MIL database;

29

Social media – MIL already makes use of Twitter and is followed by a number of business networks, we will work to increase our social media profile to connect with younger audiences that could benefit from the programme.

Local news media via press releases.

4.5 Monitoring and Evaluation

As explained in the National Delivery Framework, the RDP Common Monitoring and Evaluation System (CMES) have a range of output indicators which will measure the success of programme activities and will link to our priorities and actions in our LDS. We will utilise this system to monitor progress and to produce evidence for evaluation. The programme staff will include an element of monitoring and evaluation in their day-to-day roles as projects conclude, and ensure the CMES forms are completed and evidence provided as appropriate. Projects will complete an evaluation survey which will capture the wider benefits, and feedback and inspection visits will be used to discuss wider issues and

4.6 Action Plan

As Making it Local will be sharing staff with the REAL Devon LAG, this Action Plan will run in parallel, it is subject to change dependent upon the operational guidance to be received from Defra.

Date Key action

November 2014 Announce arrival of new programme

December 2014 Select new PMG and Chair at the annual stakeholder meeting

December 2014 Advertise for new staff

January 2015 Train new Programme Management Group

January 2015 Appraise first projects

January 2015 Staff in post

January 2015 1st decision making meeting

February 2015 1st Small Grants panel meeting

March 2015 2nd decision making meeting

5. Making It Local – Our Financial Plan

5.1 Expenditure for each year by measure

Following advice from Defra the budget has been calculated using the middle of 3 potential allocations that

were given to Making it Local in June 2014. If a higher or lower allocation is given then the budget will be

amended accordingly to a similar profile. Making it Local is working to a budget allocation of £1,772,000 for

the duration of the programme, with 18% of the total budget being allocated to running costs and animation.

The remaining 82% will be distributed to projects through grant funding. Making it Local proposes to split

the grant budget between the 6 priority areas in the following way:

Table 25: Expenditure forecast for the duration of the Programme

2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021

0 58,122 58,122 58,122 43,591 43,591 29,060 290608

0 116,243 116,243 116,243 87,183 87,183 58,121 581216

0 58,122 58,122 58,122 43,591 43,591 29,060 290608

0 14,530 14,530 14,530 10,899 10,898 7,265 72652

0 14,530 14,530 14,530 10,899 10,898 7,265 72652

0 29,061 29,061 29,061 21,795 21,795 14,530 145303

12,758 55,286 55,286 55,286 55,286 42,530 42,530 318961

Grand Total 12758 345894 345894 345894 273244 260485.5 187830.5 1772000

Support for cultural and heritage

activity

Support for increasing forestry

productivity

Financial Year

Expenditure Forecast (£)

Total

programmePolicy Priority

Running costs and animation

Support for increasing farm

productivity

Support for micro and small

enterprises and farm diversification

Support for rural tourism

Provision of rural services

30

5.2 Funding Profile

MIL will start allocating funds in January 2015, allowing actual spend to take place shortly afterwards. As

highlighted in the graph below Mil proposes to spend 20% of its total allocation each year for the first 3

years, with spending decreasing as the programme progresses.

Table 26: Funding profile

5.3 Use of grants, procurement or other type of financial support

Based on the last Leader scheme, Making it Local will offer 2 grant programmes:

A main grants scheme for capital or revenue expenditure, with a minimum grant of £10,000 and a

maximum allocation of £100,000. Applicants will be expected to provide match funding. Decisions

regarding allocation will be decided by the PMG at its bi-monthly meetings.

Small grant programme for applications up to £10,000. This can be for capital or revenue,

although restrictions will be placed on the type of revenue items that can be funded. This will use a

faster more streamlined process than the main grants with approximately monthly decision making

meetings.

Currently we do not have clear guidance on intervention rates but based on the previous programme it is

expected this LEADER funding will draw in at least £1.5m of match funding. Once further guidance is

received from Defra regarding the final allocation to Making it Local and on intervention rates for individual

measures we will be able to produce a more accurate assessment of likely leverage. With regard to

procurement, Making it Local will follow Devon County Council’s procurement rules and Defra guidance,

projects will also be obliged to follow these rules.