Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 24
24
Acknowledged
Paragraph: 83
Serious deficit in DLUHC's collaboration and communication with UKSPF recipients
Conclusion
We do not have sufficient data regarding how calculations have been made, the information we do have from central and the Devolved Governments are also not comparable in their current form. However, the number of stakeholders and local government bodies which have told us UKSPF is not a sufficient replacement is significant. This view indicates that there has been a serious deficit of collaboration and communication between the DLUHC and recipients on this issue, resulting in the lack of a shared understanding of the methodology the Government has used to calculate UKSPF.
Government Response Summary
The government reiterates that its UKSPF funding methodology was published in 2022 and claims engagement with devolved administrations took place. It states it will seek to improve engagement and collaboration on any future funding, but maintains current funding is sufficient.
Paragraph Reference:
83
Government Response
Acknowledged
HM Government
Acknowledged
At Spending Review 2020, we announced that funding for the UKSPF will ramp up so that total domestic UK-wide funding will at least match receipts from EU structural funds – the European Regional Development Fund (ERDF) and European Social Fund (ESF)- on average reaching around £1.5 billion per year. The Government’s methodology for calculating UKSPF allocations was published alongside the UKSPF prospectus in April 2022 and it explains how we estimated the average annual size of EU Structural Funds in England, Scotland, Wales, and Northern Ireland in real terms. This can be accessed here. The Government is clear that the quantum of funding that has been made available for UKSPF in 2024-25 (when the European funds have completed paying out), is sufficient to replace European funds. Prior to 2024-25 the UK Government has taken account of ongoing ERDF and ESF investment across the UK, which the UK is paying towards as part of the Withdrawal Agreement. In addition, it is worth noting that the Department engaged with the devolved administrations and local government associations immediately prior to the fund’s launch to design bespoke allocation methodologies for places in Scotland and Wales. The bespoke allocation methodologies for Scotland and Wales are explained in this allocation methodology here. The Department will continue to engage with the devolved administrations to support the delivery of the Fund and will seek to improve engagement and collaboration on any future funding.