Select Committee · Welsh Affairs Committee

Wales and the Shared Prosperity Fund

Status: Closed Opened: 11 Feb 2020 Closed: 14 Dec 2020 13 recommendations 7 conclusions 1 report

The Welsh Affairs Committee has launched an inquiry into the proposed UK Shared Prosperity Fund. The fund is earmarked to replace European Structural and Investment Funds (ESI) that puts £375 million into the Welsh economy each year. Read the key points in an interactive summary of our report

Clear

Reports

1 report
Title HC No. Published Items Response
4th Report: Wales and the Shared Prosperity Fund: Prioriti… HC 90 2 Oct 2020 20 Responded

Recommendations & Conclusions

9 items
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...

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 … Read more

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...

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 … Read more

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
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...

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 … Read more

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
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...

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 … Read more

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
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...

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 … Read more

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...

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 … Read more

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.
Read full response →
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...

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 … Read more

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
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’...

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 … Read more

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
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...

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 … Read more

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

Correspondence

4 letters
DateDirectionTitle
25 Jan 2021 To cttee Letter from the Secretary of State for Wales, re UK Shared Prosperity Fund, 22 …
25 Jan 2021 To cttee Letter from the Counsel General and Minister for European Transition, Welsh Gov…
23 Jun 2020 To cttee Letter from the Minister for Regional Growth and Local Government in response t…
11 Jun 2020 To cttee Joint letter from Select Committee Chairs to Secretary of State for Housing, Co…

Meetings & visits

1 item
DateTypeDetail
10 Mar 2020 Formal meeting · The Wilson Room, Portcullis House