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

7 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...

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 … Read more

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
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...

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 … Read more

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
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...

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 … Read more

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...

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 … Read more

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,...

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, … Read more

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
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...

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, … Read more

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
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...

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

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