Source · Select Committees · Welsh Affairs Committee
Recommendation 2
2
The UK Government must urgently work with the devolved governments of Wales, Scotland and Northern...
Conclusion
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
Government Response
Acknowledged
HM Government
Acknowledged
The UKSPF will succeed EU structural funds and provide vital investment in local economies. It will help to level up and create opportunity for people and places across the UK. Under EU structural funds, the priorities for the funding were dictated to us, and the set of systems and controls over how funds are spent have suited EU needs, not ours. Despite decades of EU funding and qualifying for the maximum level of EU structural fund investment, West Wales and the Valleys continues to lag behind the rest of the UK in terms of economic growth and employment. Leaving the European Union presents us with a unique and historic opportunity to redefine our domestic priorities, strengthen our Union, and level up the whole of the UK. In our longer-term vision for the UKSPF, a portion of the Fund will back businesses, invest in our people to support the skills the next generation demand, and provide funding so that places and communities across the UK can thrive. A second portion of the Fund will be targeted to people most in need through bespoke employment and skills programmes that are tailored to local need. This will support improved employment outcomes for those in and out of work in specific cohorts of people who face labour market barriers. Investment must be fit for the future and should be aligned with the Government’s clean growth and Net Zero objectives. The UKSPF will also take into account the specific needs of our rural communities and rural economies. The UK Government intends to work with both the Devolved Administrations and local communities to ensure that the UKSPF supports citizens across the UK. This includes engaging with local authorities and Devolved Administrations, as well as wider public and private sector organizations. Levels of EU structural fund investment (which the UK has paid for through its EU Budget contributions) will be higher in England, Scotland, Wales and Northern Ireland in 2021– 22 than in 2020–21. To help local areas prepare over 2021–22 for the introduction of the UKSPF, the Government will provide additional funding to support our communities to pilot programmes and new approaches. Further details will be published in the New Year.