Doh.... missed that obvious error in the schematicThere should be no connection from R3 and pin 1 to GND.
Your schematic is wrong.
Well spotted
Pin 1 of PIC goes to Pin 1 of ICSP connector and to one end of 10K resistor R3
Other end of R3 goes to +5V
Remove GND connection from pin 1 of PIC - both on schematic and on board
