National evaluation of the £3.2bn ERDF local growth programme
The £3.2bn European Regional Development Fund for England 2014-20 supported more than 1,000 projects focused on research and innovation, SME growth, low carbon transition, climate adaptation, transport, social inclusion and COVID-19 recovery activity.
Wavehill and our partners, Winning Moves, Belmana, Hatch and CAG Consultants, alongside expert advisors, Neil Evans and Professor Stephen Roper were appointed by the Ministry of Housing, Communities and Local Government (MHCLG) to undertake the final evaluation of the fund.
This large-scale evaluation, incorporated surveys of 4,700 beneficiaries, a meta-analysis of 260 project-level evaluations, extensive data review and stakeholder consultations. The work examined delivery, impact, value for money and programme performance across ten investment priorities, helping to demonstrate how large-scale local growth funding operated in changing economic conditions.
The evaluation delivered a range of outputs, providing valuable resources to support the design and delivery of local growth programmes in the future:
• Lessons for Local Growth Practitioners – the evaluation generated a wealth of evidence highlighting what works in different fields of local growth interventions. This guide sets out 17 different intervention types funded under ERDF. In each case, the guidance outlines details of project types delivered and lessons drawn from our large-scale review of project evaluations. For many sections of the report, there are also inputs from the What Works Centre for Local Economic Growth, providing a wider context of lessons relating to that intervention type.
• Local Growth Interventions Unit Cost Analysis – this paper provides a valuable reference for quantifying project output targets in the future. This includes outputs such as enterprises supported, additional employment increase and area of land rehabilitated. The paper outlines ‘cost per output’ figures across a range of funded ERDF projects that used that indicator. In each case, it shows the median, upper and lower quartiles as well as the full range of unit costs. Where possible, median unit costs are also set out by project type and geography. These figures provide helpful benchmarks for practitioners seeking to develop appropriate targets for local growth projects they are looking to deliver going forward.
• ERDF Evaluation Report – the main evaluation report includes lessons for managing local growth programmes, and include:
• the importance of selecting and clearly defining output and outcome indicators
• developing strong data collection and monitoring tools
• ensuring sufficient capacity and expertise for programme management
• establishing clarity around the objectives and results that the funding is intended to achieve.
The report is available to read here.