Source · Select Committees · Welsh Affairs Committee
Recommendation 6
6
Paragraph: 59
The UK Government has repeatedly committed to ensuring Wales does not lose out as a...
Conclusion
The UK Government has repeatedly committed to ensuring Wales does not lose out as a result of the switch from European Structural Funds to the Shared Prosperity Fund and the evidence overwhelmingly states that Wales should not end up worse off, particularly in light of COVID-19. A needs-based formula is required over a multi-year financial framework to allow a fair allocation and effective planning and delivery.
Paragraph Reference:
59
Government Response
Acknowledged
HM Government
Acknowledged
Due to the way the funds operate, levels of EU structural fund investment (which the UK has paid for through its EU Budget contributions) will be higher in all four nations in 2021–22 than in 2020–21. In Wales, we anticipate that EU structural fund receipts for 2021–22 will also exceed average yearly receipts for the 2014– 20 programme. The Government will ramp up UKSPF investment, so that total domestic UK-wide funding will at least match current EU receipts, on average reaching around £1.5 billion a year. A portion of the Fund will target places most in need across the UK, such as ex-industrial areas, deprived towns and rural and coastal communities. The UK Government intends to work with the Welsh Government to ensure that the UKSPF effectively supports citizens in Wales. We will set out further details on the Fund in a UK- wide investment framework published in the spring. The UKSPF will operate over multiple years to provide certainty to local places and support the development of longer-term strategic planning. Its funding profile will be set out at the next Spending Review.