Select Committee · Scottish Affairs Committee

Scotland and the Shared Prosperity Fund

Status: Closed Opened: 15 Dec 2020 Closed: 18 Nov 2021 9 recommendations 1 report

The Scottish Affairs Committee will examine what the Shared Prosperity Fund means for Scotland, including how the recent Spending Review affects the delivery of the Fund and the nation’s allocation. The Committee will also examine how Scotland’s priorities will be incorporated into the final plans for the fund. Read the call for evidence for more … Show more

Reports

1 report
Title HC No. Published Items Response
Third Report - The UK Shared Prosperity Fund and Scotland HC 52 9 Jul 2021 9 Responded

Recommendations & Conclusions

9 items
1 Recommendation Third Report - The UK Shared Prosperity… Accepted

We welcome the UK Government’s original intentions to formally consult on the UK Shared Prosperity...

We welcome the UK Government’s original intentions to formally consult on the UK Shared Prosperity Fund (UKSPF), and its early efforts to engage local authorities in Scotland. However, we are concerned that a formal consultation has not taken place, given that the UKSPF is due to commence next year. The … Read more

Government response AI summary
The government states it has been engaging widely with stakeholders on the UK Shared Prosperity Fund since 2016 through various events and roundtables, implicitly indicating these efforts address the need for consultation without committing to a new formal public consultation by autumn 2021.
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Scotland Office
2 Recommendation Third Report - The UK Shared Prosperity… Accepted

The UKSPF could bring significant benefits to Scotland if it is designed and delivered effectively.

The UKSPF could bring significant benefits to Scotland if it is designed and delivered effectively. Collaboration between the UK and Scottish Governments and local authorities will be vital to ensuring that the UKSPF uses the expertise built up through decades of delivering EU funds and benefits the people of Scotland. … Read more

Government response AI summary
The government accepts the need for collaboration, detailing various ongoing and planned engagement mechanisms with the Scottish Government, including their place in governance structures, regular official engagement, ministerial meetings, and the establishment of an Interministerial Group.
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Scotland Office
3 Recommendation Third Report - The UK Shared Prosperity… Deferred

We welcome the UK Government’s commitment that all UK nations will receive at least the...

We welcome the UK Government’s commitment that all UK nations will receive at least the same amount of funds under UKSPF as under the EU Funds. It is, however, unclear how much funding will be available per year, even as an average. The UK Government’s multi-year funding profile should clarify … Read more

Government response AI summary
The government states that the UK Shared Prosperity Fund's multi-year funding profile, including annual allocations for the UK and Scotland, will be set out at the next Spending Review and further details published later in 2021.
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Scotland Office
4 Recommendation Third Report - The UK Shared Prosperity… Deferred

The UK Government must clarify how and when EU rural development funding, including the European...

The UK Government must clarify how and when EU rural development funding, including the European Agricultural Fund for Rural Development (EAFRD) and European Maritime Fisheries Fund (EMFF), will be replaced. Otherwise, there is a risk that expertise and capacity built up through delivering those funds will be lost. (Paragraph 19) … Read more

Government response AI summary
The government will consider at Spending Review 2021 whether to replace LEADER and EAFRD funding through the UK Shared Prosperity Fund or other farm support programmes, thereby deferring clarification on how and when this funding will be replaced.
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Scotland Office
5 Recommendation Third Report - The UK Shared Prosperity… Accepted in Part

It is unclear how the CRF will feed into the development of the UKSPF.

It is unclear how the CRF will feed into the development of the UKSPF. In March 2022, a year after it began, the UK Government should evaluate the Community Renewal Fund and publish its findings on how well the fund has operated. This evaluation should highlight implications for the design … Read more

Government response AI summary
The government states the UK Community Renewal Fund will inform the design of the UK Shared Prosperity Fund and describes active research and stakeholder engagement to learn lessons, but does not commit to a formal evaluation and publication of findings by March 2022.
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Scotland Office
6 Recommendation Third Report - The UK Shared Prosperity… Acknowledged

A lack of transparency in the selection process for the UKSPF could damage trust in...

A lack of transparency in the selection process for the UKSPF could damage trust in the fund and those delivering it. The UK Government should ensure that its methodology and criteria for allocating UKSPF funds are clear and transparent.

Government response AI summary
The government states it will publish further detail on the UK Shared Prosperity Fund later this year and confirm its funding profile at the next Spending Review, indicating that information will be provided but not explicitly committing to clear and transparent allocation methodology and criteria.
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Scotland Office
7 Recommendation Third Report - The UK Shared Prosperity… Accepted in Part

We welcome UK Government support to help local authorities build their capacity to develop bids.

We welcome UK Government support to help local authorities build their capacity to develop bids. In its response to this Report, the UK Government should clarify 14 The UK Shared Prosperity Fund and Scotland how much funding has been given to local authorities in Scotland to help them build capacity … Read more

Government response AI summary
The government clarifies that Scottish local authorities will receive £125,000 for Levelling Up Fund bids and £20,000 for UK Community Renewal Fund bids in priority places, but details on up to £14 million in specific UK Shared Prosperity Fund capacity funding will be released later …
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Scotland Office
8 Recommendation Third Report - The UK Shared Prosperity… Not Addressed

The UK Government should prioritise academic research funding when allocating resources under the UKSPF.

The UK Government should prioritise academic research funding when allocating resources under the UKSPF. The UK Government should collaborate with the Scottish Government, to ensure that regions where structural funding for universities has brought significant regional benefits, are not disproportionally disadvantaged by the transition to the UKSPF. Read more

Government response AI summary
The government's response outlines the general purpose of the UK Shared Prosperity Fund, but does not address the specific recommendations regarding prioritising academic research funding or collaborating with the Scottish Government to prevent universities from being disproportionately disadvantaged.
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Scotland Office
9 Recommendation Third Report - The UK Shared Prosperity… Deferred

We recommend that the UK Government evaluates the progress of the UKSPF after one year...

We recommend that the UK Government evaluates the progress of the UKSPF after one year of operation and publishes a report, to ensure that funding is delivering the levelling up agenda by being allocated to the areas and sectors of greatest need. (Paragraph 33) The UK Shared Prosperity Fund and … Read more

Government response AI summary
The government states evaluation will be central to the UK Shared Prosperity Fund but defers providing further details on how and when this will happen.
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Scotland Office

Oral evidence sessions

1 session
Date Witnesses
4 Mar 2021 Hilary Pearce · Scottish Government, Ivan McKee MSP · Scottish Government, Professor David Bell · University of Stirling, Professor John Bachtler · University of Strathclyde View ↗

Who gave evidence

4 witnesses
WitnessOrganisationSessions
Hilary Pearce · Deputy Director, European Structural Funds and Su… Scottish Government 1
Ivan McKee MSP · Minister for Business, Trade, Tourism and Enterpr… Scottish Government 1
Professor David Bell · Professor University of Stirling 1
Professor John Bachtler · Professor of European Policy Studies and Director… University of Strathclyde 1

Correspondence

1 letter
DateDirectionTitle
15 Apr 2021 To cttee Letter from Ivan McKee MSP, Minister for Trade, Innovation and Public Finance, …