Source · Select Committees · Welsh Affairs Committee
Recommendation 7
7
Paragraph: 60
In the current changing economic circumstances, we are unable to recommend a headline figure for...
Recommendation
In the current changing economic circumstances, we are unable to recommend a headline figure for Wales’ allocation of the Shared Prosperity Fund. However, we call on the Government to honour its commitment to maintain at least the current levels of real-term funding and to carefully consider the arguments for increased spending. Given that the full effects of COVID-19 could be unknown for some time, it should monitor the current economic situation in Wales and adjust its allocation accordingly. Ministers should provide reassurance that multi-year funding will continue and work with the Welsh Government to give serious thought to the potential methods of calculating Wales’ funding requirements. They should update us with their thinking on the size of the Fund and means of allocation as soon as possible.
Paragraph Reference:
60
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.