Select committee: Scottish Affairs Committee

Third Report - The UK Shared Prosperity Fund and Scotland

HC 52 Published 9 July 2021

Scottish Affairs Committee Scotland and the Shared Prosperity Fund Report on parliament.uk ↗

At a glance9 recommendations · Government response published 27 October 2021 (deadline 9 September 2021)

The government's response

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government responds to each recommendation in turn, setting out engagement already under way and committing to publish further details on the UK Shared Prosperity Fund "later this year", with its funding profile to be confirmed at the next Spending Review.

On consultation, it points to engagement with stakeholders since 2016 and says it will "continue to engage stakeholders on specific elements" of the fund; it does not commit to a formal public consultation by autumn 2021.
On working with the Scottish Government, it says it "intends to work with the Devolved Administrations" and confirms they "will have a place within the governance structures" for the fund.
On rural funding, it says it "will consider at Spending Review 2021 whether to replace LEADER and EAFRD" through the fund or other farm support programmes.
On capacity funding, it states that it has "set aside up to £14m capacity funding" to help local places prepare, with details on eligibility and funding to be released "later this year".

Read the government's response ↗ Report an error

What the committee recommended 9

1
We welcome the UK Government’s original intentions to formally consult on the UK Shared Prosperity... Recommendation · paragraph 11
2
The UKSPF could bring significant benefits to Scotland if it is designed and delivered effectively. Recommendation · paragraph 12
3
We welcome the UK Government’s commitment that all UK nations will receive at least the... Recommendation · paragraph 16
4
The UK Government must clarify how and when EU rural development funding, including the European... Recommendation · paragraph 19
5
It is unclear how the CRF will feed into the development of the UKSPF. Recommendation · paragraph 24

See all 9 recommendations and conclusions

Sources

Third Report - The UK Shared Prosperity Fund and Scotland ↗The committee's report, HC 52, parliament.uk
Second Special Report - The UK Shared Prosperity Fund and Scotland: Government Response to the Committee’s Third Report ↗The government's response, 27 October 2021, parliament.uk

Recommendations and conclusions 9

1
We welcome the UK Government’s original intentions to formally consult on the UK Shared Prosperity... Recommendation · paragraph 11 · addressed to Scotland Office Recommendation (the committee's words)
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 uncertainty is hindering planning efforts and poses risks to a smooth transition from EU funds to the UKSPF. The UK Government must launch a formal, public consultation on its proposals for the UKSPF by autumn 2021.
2
The UKSPF could bring significant benefits to Scotland if it is designed and delivered effectively. Recommendation · paragraph 12 · addressed to Scotland Office Recommendation (the committee's words)
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. We urge the UK and Scottish Governments to work constructively together in the design and delivery of the UKSPF.
3
We welcome the UK Government’s commitment that all UK nations will receive at least the... Recommendation · paragraph 16 · addressed to Scotland Office Recommendation (the committee's words)
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 how much funding will be available each year for the UK and for Scotland for at least the first five years of the UKSPF. The UK Government’s multi-year funding profile should clarify how much funding will be available each year for the UK and for Scotland for at least the first five years of the UKSPF.
4
The UK Government must clarify how and when EU rural development funding, including the European... Recommendation · paragraph 19 · addressed to Scotland Office Recommendation (the committee's words)
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.
5
It is unclear how the CRF will feed into the development of the UKSPF. Recommendation · paragraph 24 · addressed to Scotland Office Recommendation (the committee's words)
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 and delivery of the UKSPF.
6
A lack of transparency in the selection process for the UKSPF could damage trust in... Recommendation · paragraph 25 · addressed to Scotland Office Recommendation (the committee's words)
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.
7
We welcome UK Government support to help local authorities build their capacity to develop bids. Recommendation · paragraph 28 · addressed to Scotland Office Recommendation (the committee's words)
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 in developing bids for the UKSPF. In its response to this Report, the UK Government should clarify how much funding has been given to local authorities in Scotland to help them build capacity in developing bids for the UKSPF.
8
The UK Government should prioritise academic research funding when allocating resources under the UKSPF. Recommendation · paragraph 32 · addressed to Scotland Office Recommendation (the committee's words)
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.
9
We recommend that the UK Government evaluates the progress of the UKSPF after one year... Recommendation · paragraph 33 · addressed to Scotland Office Recommendation (the committee's words)
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.