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 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
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
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
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
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