Source · Select Committees · Welsh Affairs Committee
Recommendation 4
4
The development of the Shared Prosperity Fund represents a unique opportunity to re-evaluate Wales’ economic...
Conclusion
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
Government Response
Acknowledged
HM Government
Acknowledged
The Covid-19 pandemic continues to present exceptional circumstances, and it is right that our focus and priorities shift accordingly. The Government has conducted a one-year Spending Review to prioritize the response to Covid-19 and focus on supporting jobs. Despite these challenging times, it is important we do not lose sight of our long-term objectives. Prior to the launch of the UKSPF, the UK Government will provide £220m of additional funding in 2021–22 for local areas to pilot programmes and new approaches. Alongside the unprecedented support the Government continues to provide in response to the pandemic, this additional funding will help local areas start to transition away from EU structural funds from 2021. In our longer-term vision for the UKSPF, the fund will invest in people, communities and local business to level up and create opportunity in places most in need and for people who face labour market barriers. This investment will support improved employment outcomes and drive productivity across the UK, supporting the recovery and renewal of local economies. The funding will also help to address the ongoing skills shortage in Wales and narrow the GDP gap between Wales and the rest of the UK.