Source · Select Committees · Welsh Affairs Committee
Recommendation 18
18
Paragraph: 86
The switch to the Shared Prosperity Fund is an opportunity to reset and re-evaluate Wales’...
Conclusion
The switch to the Shared Prosperity Fund is an opportunity to reset and re-evaluate Wales’ economic priorities post-Brexit and post-COVID-19 and to develop a Shared Prosperity Fund that tackles the root causes of Wales’ economic underperformance. The funding pot should be needs based and maintain at least the current size of funding in real terms. While funding should be based on a multi-annual basis, it should be reactive to the health of the economy as Wales, and the rest of the UK, seeks to recover from the COVID-19 pandemic.
Paragraph Reference:
86
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.