Recommendations & Conclusions
20 items
1
Conclusion
4th Report: Wales and the Shared Prosp…
Acknowledged
Despite announcing the Shared Prosperity Fund more than three years ago, the Government appears to have made negligible progress in developing its replacement for European Structural and Investment funding. Its repeated promises of a consultation and of imminent announcements have failed to materialise, demonstrating a lack of priority. Although we …
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Despite announcing the Shared Prosperity Fund more than three years ago, the Government appears to have made negligible progress in developing its replacement for European Structural and Investment funding. Its repeated promises of a consultation and of imminent announcements have failed to materialise, demonstrating a lack of priority. Although we acknowledge that the COVID-19 pandemic has forced Ministers to reprioritise and refocus their attention, this does not excuse the lack of progress as a significant amount of time had passed before the COVID outbreak became a factor.
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Government response AI summary
The government acknowledges the UK Shared Prosperity Fund (UKSPF) will succeed EU structural funds and contribute to levelling up. It commits to providing additional funding in 2021-22 to help local areas prepare for the UKSPF, with further details to be published in the New Year.
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Wales Office
2
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted in Part
The UK Government must urgently work with the devolved governments of Wales, Scotland and Northern Ireland to agree priorities for the Shared Prosperity Fund and to co-create the details regarding how the Fund will work. It must provide evidence of progress being made in October ahead of finalising arrangements during …
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The UK Government must urgently work with the devolved governments of Wales, Scotland and Northern Ireland to agree priorities for the Shared Prosperity Fund and to co-create the details regarding how the Fund will work. It must provide evidence of progress being made in October ahead of finalising arrangements during November. At that point, the plans the UK Government has co-created with the devolved administrations must give full details of what the Fund will look like, how it will be funded and how it will be administered. The UK Government must guarantee that there will be no cliff edge ending to funding arrangements after the transition phase ends in January 2021, particularly as ESI funds have been used to assist the Welsh Government in responding to the economic challenges of coronavirus. It is important that this work can continue beyond January and throughout the pandemic. (Paragraph 17) EU Structural Funding in Wales
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Government response AI summary
The government commits to working with devolved administrations and local communities on the UKSPF and states that EU structural fund investment will be higher in 2021-22, with additional funding provided for 2021-22; however, it does not explicitly guarantee no cliff edge specifically regarding COVID-19 response …
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Wales Office
3
Conclusion
4th Report: Wales and the Shared Prosp…
Acknowledged
We acknowledge the difficulties in assessing the impact of ESI funds in Wales, particularly in the absence of the counterfactual question of what would have happened without them. However, it is clear that while certain sectors, particularly higher education, the arts and charities have benefitted substantially, these fund have not …
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We acknowledge the difficulties in assessing the impact of ESI funds in Wales, particularly in the absence of the counterfactual question of what would have happened without them. However, it is clear that while certain sectors, particularly higher education, the arts and charities have benefitted substantially, these fund have not been able, and were not expected on their own, to deliver a transformative change for the Welsh economy, as the policies of both the UK and the Welsh Government would also have played a pivotal role in determining the benefits to Wales, particularly those of the Welsh Government. Wales continues to qualify for EU Structural Funding and lags significantly behind other regions of the UK and EU. (Paragraph 36) Priorities for the Shared Prosperity Fund
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Government response AI summary
The government acknowledges the committee's observation that EU structural funds did not deliver transformative change for the Welsh economy, asserting that the new UKSPF will redefine domestic priorities and target investment to level up the UK.
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Wales Office
4
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted
The development of the Shared Prosperity Fund represents a unique opportunity to re-evaluate Wales’ economic priorities in light of the economic fallout from the pandemic, to develop a funding system that better reflects Welsh needs, and which includes a broader set of tools to measure the impact of the Fund …
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The development of the Shared Prosperity Fund represents a unique opportunity to re-evaluate Wales’ economic priorities in light of the economic fallout from the pandemic, to develop a funding system that better reflects Welsh needs, and which includes a broader set of tools to measure the impact of the Fund such as the impact on quality of life and well-being, as well as the effect on GVA. Addressing the root causes of Wales’ economic challenges, including productivity and skills, must be a core objective of the Shared Prosperity Fund. (Paragraph 45) 28 Wales and the Shared Prosperity Fund: Priorities for the replacement of EU structural funding
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Government response AI summary
The government accepts the recommendation, stating the UKSPF will invest in people, communities, and local businesses to level up and create opportunity, focusing on improved employment outcomes, driving productivity, and addressing skills shortages in Wales, and provides £220m additional funding for 2021-22.
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Wales Office
5
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted
We recommend that the UK and Welsh Governments use the development of the Shared Prosperity Fund as an opportunity to jointly reassess their economic development priorities, particularly in light of the economic damage caused by COVID-19. In designing the Shared Prosperity Fund, more thought should be given to how the …
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We recommend that the UK and Welsh Governments use the development of the Shared Prosperity Fund as an opportunity to jointly reassess their economic development priorities, particularly in light of the economic damage caused by COVID-19. In designing the Shared Prosperity Fund, more thought should be given to how the Fund can bolster skills, productivity and wages, all of which will be essential if Wales is to narrow the GDP gap with the rest of the UK.
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Government response AI summary
The government will provide £220m in 2021-22 for local areas to pilot programmes and new approaches, and the longer-term SPF will invest in people, communities, and business to improve employment, productivity, and address skills shortages in Wales.
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Wales Office
6
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted in Part
The UK Government has repeatedly committed to ensuring Wales does not lose out as a result of the switch from European Structural Funds to the Shared Prosperity Fund and the evidence overwhelmingly states that Wales should not end up worse off, particularly in light of COVID-19. A needs-based formula is …
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The UK Government has repeatedly committed to ensuring Wales does not lose out as a result of the switch from European Structural Funds to the Shared Prosperity Fund and the evidence overwhelmingly states that Wales should not end up worse off, particularly in light of COVID-19. A needs-based formula is required over a multi-year financial framework to allow a fair allocation and effective planning and delivery.
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Government response AI summary
The government accepts the recommendation in part, committing to matching current EU receipts, ensuring the UKSPF operates over multiple years, and targeting places most in need; however, the specific needs-based formula and detailed funding profile will be set out at the next Spending Review.
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Wales Office
7
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted
In the current changing economic circumstances, we are unable to recommend a headline figure for Wales’ allocation of the Shared Prosperity Fund. However, we call on the Government to honour its commitment to maintain at least the current levels of real-term funding and to carefully consider the arguments for increased …
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In the current changing economic circumstances, we are unable to recommend a headline figure for Wales’ allocation of the Shared Prosperity Fund. However, we call on the Government to honour its commitment to maintain at least the current levels of real-term funding and to carefully consider the arguments for increased spending. Given that the full effects of COVID-19 could be unknown for some time, it should monitor the current economic situation in Wales and adjust its allocation accordingly. Ministers should provide reassurance that multi-year funding will continue and work with the Welsh Government to give serious thought to the potential methods of calculating Wales’ funding requirements. They should update us with their thinking on the size of the Fund and means of allocation as soon as possible.
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Government response AI summary
The government commits to matching current EU receipts with UK-wide funding averaging £1.5 billion annually, ensures multi-year funding for the UK Shared Prosperity Fund, and intends to work with the Welsh Government. Further details will be provided in a UK-wide investment framework in the spring …
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Wales Office
8
Conclusion
4th Report: Wales and the Shared Prosp…
Acknowledged
Despite the positive feedback we have received about the performance of the Welsh European Funding Office in administering ESI funds, it is clear that for many respondents the current system of structural funding has been too centralised and overly bureaucratic. The development of the Shared Prosperity Fund represents an opportunity …
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Despite the positive feedback we have received about the performance of the Welsh European Funding Office in administering ESI funds, it is clear that for many respondents the current system of structural funding has been too centralised and overly bureaucratic. The development of the Shared Prosperity Fund represents an opportunity to address these problems and establish a system of funding which is less administratively burdensome.
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Government response AI summary
The government acknowledges the committee's observation about the overly bureaucratic nature of EU structural funds and recognises the opportunity to develop a new, simplified, and integrated approach for the UKSPF, with further details to be published in the spring.
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Wales Office
9
Recommendation
4th Report: Wales and the Shared Prosp…
Acknowledged
If the Shared Prosperity Fund is to offer a more open and responsive system of funding, the UK Government and Welsh Governments should learn the lessons from how EU funds have been administered under the ESI schemes, including the criticisms we have heard about the current system’s levels of accessibility …
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If the Shared Prosperity Fund is to offer a more open and responsive system of funding, the UK Government and Welsh Governments should learn the lessons from how EU funds have been administered under the ESI schemes, including the criticisms we have heard about the current system’s levels of accessibility and bureaucracy. In their plans for the Fund, the UK Government should explain how they intend to overcome these problems and detail the work they have undertaken to review the existing system of ESI funding.
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Government response AI summary
The government acknowledges the problems of bureaucracy in EU funds and the opportunity for a simplified UKSPF, but does not yet detail the specific lessons learned, the review work undertaken, or how they intend to overcome these problems, deferring further details to a UK-wide investment …
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Wales Office
10
Conclusion
4th Report: Wales and the Shared Prosp…
Acknowledged
Despite repeated assurances from UK Government that it would respect the devolution settlements of Wales, Scotland and Northern Ireland, there are considerable ambiguities about where power will lie in relation to the Shared Prosperity Fund. It is unclear whether, as a result of the provisions in the Internal Market Bill, …
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Despite repeated assurances from UK Government that it would respect the devolution settlements of Wales, Scotland and Northern Ireland, there are considerable ambiguities about where power will lie in relation to the Shared Prosperity Fund. It is unclear whether, as a result of the provisions in the Internal Market Bill, Whitehall plans to oversee the administration of the Fund directly, or if the financial assistance powers contained within the Bill are intended to operate separately to the Fund. In either event, we believe the UK Government would be ill-advised to lose or ignore the expertise that has been built up in the devolved administration’s European Funding Offices. (Paragraph 73) Wales and the Shared Prosperity Fund: Priorities for the replacement of EU structural funding 29
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Government response AI summary
The government acknowledges the committee's concern by stating its intention to work with the Welsh Government, local communities, and other devolved administrations to ensure the UK Shared Prosperity Fund supports citizens in Wales, with further details to be published in upcoming frameworks.
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Wales Office
11
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted
There are differences of opinion as to where the precise balance of power and responsibility should lie for the oversight and administration of the Shared Prosperity Fund. However, whether the UK Government takes on a commissioning role for, or fully devolves the administration of, the Fund, the Shared Prosperity Fund …
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There are differences of opinion as to where the precise balance of power and responsibility should lie for the oversight and administration of the Shared Prosperity Fund. However, whether the UK Government takes on a commissioning role for, or fully devolves the administration of, the Fund, the Shared Prosperity Fund should be built upon the principle of cooperation and partnership between the UK Government, the devolved administrations and local government.
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Government response AI summary
The government accepts the recommendation, stating its intention to work with the Welsh Government, local communities, local authorities, and Devolved Administrations to ensure the UKSPF supports citizens in Wales, with further details on funding and framework to be published in the New Year and spring.
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Wales Office
12
Recommendation
4th Report: Wales and the Shared Prosp…
Acknowledged
The UK Government should work with the devolved administrations and local government to develop a memorandum of understanding that will underpin the operation of the Shared Prosperity Fund, this memorandum should be built around a partnership approach and provide a guarantee of genuine joint working and engagement for all stakeholders, …
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The UK Government should work with the devolved administrations and local government to develop a memorandum of understanding that will underpin the operation of the Shared Prosperity Fund, this memorandum should be built around a partnership approach and provide a guarantee of genuine joint working and engagement for all stakeholders, including the third sector.
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Government response AI summary
The government acknowledges the need for genuine joint working and engagement for the Shared Prosperity Fund by stating its intention to work with the Welsh Government, local communities, and other stakeholders, but does not explicitly commit to developing a memorandum of understanding.
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Wales Office
13
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted
Local authorities have played an important role in the delivery of ESI funding with their on-the-ground knowledge and expertise and the UK and Welsh Governments should seek to ensure that the Shared Prosperity Fund utilises their experience. While the full economic benefits of City and Growth Deals are yet to …
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Local authorities have played an important role in the delivery of ESI funding with their on-the-ground knowledge and expertise and the UK and Welsh Governments should seek to ensure that the Shared Prosperity Fund utilises their experience. While the full economic benefits of City and Growth Deals are yet to be seen, they offer a blueprint for collaborative working between the UK and devolved governments and local authorities from which lessons should be learned. We note that the Welsh Government has brought forward proposals which would enable local authorities to establish Corporate Joint Committees to facilitate joint working, including in areas covered by City and Growth deals. It would seem sensible for the Shared Prosperity Fund to be designed so that it could, in future, work with City and Growth deals.
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Government response AI summary
The government outlines how the UKSPF will enable local places to shape investment and complement City and Growth Deals, confirming that officials have discussed lessons learned from these deals with devolved administrations and local authorities.
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Wales Office
14
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted
As part of the Memorandum of Understanding that should underpin the Shared Prosperity Fund, the UK and Welsh Governments ought to give serious consideration to the role that local government in the delivery of the Fund. Both the UK and devolved administrations should seek to learn the lessons of how …
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As part of the Memorandum of Understanding that should underpin the Shared Prosperity Fund, the UK and Welsh Governments ought to give serious consideration to the role that local government in the delivery of the Fund. Both the UK and devolved administrations should seek to learn the lessons of how joint working has been facilitated by and through the City and Growth Deals, and how those lessons could be applied to the Shared Prosperity Fund. In designing the fund, Ministers should consider the opportunities for how these Deals might complement the new funding arrangements. (Paragraph 82) Concluding remarks
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Government response AI summary
The government states that the UKSPF will enable local places to shape investment and complement City and Growth Deal funding, confirming that officials have discussed lessons learned from these deals with devolved administrations and local authorities.
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Wales Office
15
Conclusion
4th Report: Wales and the Shared Prosp…
Accepted
For the past twenty years, Wales has received more European Structural Funds than any other part of the UK in an attempt to bring the Welsh economy up to the EU average. This funding which is worth hundreds of millions of pounds each year is all the more important at …
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For the past twenty years, Wales has received more European Structural Funds than any other part of the UK in an attempt to bring the Welsh economy up to the EU average. This funding which is worth hundreds of millions of pounds each year is all the more important at a time when the COVID-19 pandemic has inflicted major economic damage.
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Government response AI summary
The government acknowledges the pandemic's impact and details its plans to provide £220m in additional funding for 2021-22 for local areas to transition from EU structural funds, with the long-term UKSPF investing in people, communities, and businesses to level up.
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Wales Office
16
Recommendation
4th Report: Wales and the Shared Prosp…
Not Addressed
However, with that funding due to taper off in less than three months’ time, communication from Ministers, and substantive proposals for the Shared Prosperity Fund, have been conspicuous in their absence. For more than three years, we have witnessed a failure to properly engage with stakeholders, or Parliament. As a …
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However, with that funding due to taper off in less than three months’ time, communication from Ministers, and substantive proposals for the Shared Prosperity Fund, have been conspicuous in their absence. For more than three years, we have witnessed a failure to properly engage with stakeholders, or Parliament. As a result, there is no clarity as to what the Shared Prosperity Fund will look like, how it will be administered, nor how it will be funded. This is unacceptable, and the UK Government must, as a priority, publish detailed proposals for how the Fund will operate. (Paragraph 84) 30 Wales and the Shared Prosperity Fund: Priorities for the replacement of EU structural funding
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Government response AI summary
The government responds with a general vision for the UKSPF, highlighting its intent to succeed EU structural funds and level up the UK, but does not explicitly commit to publishing detailed proposals or address the urgency requested by the committee.
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Wales Office
17
Conclusion
4th Report: Wales and the Shared Prosp…
Acknowledged
The impact of EU funding is hard to measure, and it is quite possible that Wales would have been significantly worse off without it. However, this funding has not been a catalyst for a transformation in the fortunes of the Welsh economy.
Government response AI summary
The government acknowledges the committee's observation about the limited transformative impact of past EU funding, explaining that the new UKSPF will address this by redefining domestic priorities and targeting investment to level up communities across the UK.
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Wales Office
18
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted
The switch to the Shared Prosperity Fund is an opportunity to reset and re-evaluate Wales’ economic priorities post-Brexit and post-COVID-19 and to develop a Shared Prosperity Fund that tackles the root causes of Wales’ economic underperformance. The funding pot should be needs based and maintain at least the current size …
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The switch to the Shared Prosperity Fund is an opportunity to reset and re-evaluate Wales’ economic priorities post-Brexit and post-COVID-19 and to develop a Shared Prosperity Fund that tackles the root causes of Wales’ economic underperformance. The funding pot should be needs based and maintain at least the current size of funding in real terms. While funding should be based on a multi-annual basis, it should be reactive to the health of the economy as Wales, and the rest of the UK, seeks to recover from the COVID-19 pandemic.
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Government response AI summary
The government commits to ramping up UKSPF investment to at least match current EU receipts, with a portion targeting places most in need, and confirms the fund will operate multi-annually, with its funding profile to be set at the next Spending Review.
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Wales Office
19
Recommendation
4th Report: Wales and the Shared Prosp…
Accepted in Part
Given the publication of the UK Government’s Internal Market Bill, it is all the more urgent that clarity and detail is provided about the Shared Prosperity Fund. However designed, the expertise gained in administering structural funds should not be lost, and Ministers must embrace a partnership approach that draws upon …
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Given the publication of the UK Government’s Internal Market Bill, it is all the more urgent that clarity and detail is provided about the Shared Prosperity Fund. However designed, the expertise gained in administering structural funds should not be lost, and Ministers must embrace a partnership approach that draws upon the expertise and resources of the devolved administrations, local government and the third sector.
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Government response AI summary
The government commits to embracing a partnership approach by working and engaging with devolved administrations, local communities, and other organisations to ensure the UKSPF supports citizens, and states further details regarding preparatory funding will be published.
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Wales Office
20
Conclusion
4th Report: Wales and the Shared Prosp…
Accepted
The UK’s withdrawal from the European Union and the impact of the COVID-19 pandemic makes this an exceptional time, and opportunity, for the governments of the UK to design a more responsive and adaptable system of structural and regional funding. After three years of delay and lack of detail, it …
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The UK’s withdrawal from the European Union and the impact of the COVID-19 pandemic makes this an exceptional time, and opportunity, for the governments of the UK to design a more responsive and adaptable system of structural and regional funding. After three years of delay and lack of detail, it is not too late. (Paragraph 88) Wales and the Shared Prosperity Fund: Priorities for the replacement of EU structural funding 31
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Government response AI summary
The government outlines its plans for the UK Shared Prosperity Fund (UKSPF) to succeed EU structural funds, aiming to level up and create opportunity across the UK through investments in businesses, people, and communities, working with Devolved Administrations.
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Wales Office