Source · Select Committees · Public Accounts Committee
Recommendation 10
10
We asked the Department how the part played by the devolved governments on the UK...
Conclusion
We asked the Department how the part played by the devolved governments on the UK Shared Prosperity Fund compared to their part in deciding the allocation of the European funds it is replacing. The Department explained that for the European Structural Funds, the Devolved National Governments had been the “managing authorities” but that decision-making for the UKSPF will be for the UK Government. We raised concerns that 20 Q 79, 80 21 Q 79 22 Q 80 23 Qq 90, 119–122 24 C&AG’s Report, para 4 25 C&AG’s Report, para 3.2; Committee of Public Accounts, Selecting towns for the Towns Fund, Twenty-Fourth Report of Session 2019–21, HC 651, 11 November 2020, para 2 26 Q 103,C&AG’s report, para 3 and Figure 2; Department for Levelling Up, Housing & Communities, Freeports programme: accounting officer assessment, March 2022; Green Freeports in Scotland: bidding prospectus, March 2022 Local economic growth 11 the arrangements meant that where the Scottish Government, for example, had previously been able to allocate funds to local authorities using its priorities, the equivalent decision for the UKSPF would now be taken by the UK Government and based entirely on UK Government’s assessment of priorities.27 We noted that decisions such as those around how much to allocate, what the criteria were, when to open and close bidding and how to score bids, were taken by the UK government, whereas previously devolved governments would have had significant input.28
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The department agrees with the Committee’s recommendation. Target implementation date: To be confirmed 5.2 Although the government agrees with the Committee’s recommendation, it disagrees with the conclusion it is based on. 5.3 The department’s priority is delivering effective investment in all parts of the UK. For LUF, the round two prospectus confirms across both rounds at least 9% of the total allocation will be set aside for Scotland, 5% for Wales, and 3% for Northern Ireland, subject to a suitable number of high-quality bids coming forward. The Prospectus and Technical Note set out how applicants in Scotland, Wales and Northern Ireland should set out how bids align with, or complement, wider public service investments made available by the devolved administrations. Where appropriate, the department will seek input from devolved administrations on projects to be delivered in their geographical areas, including on deliverability and alignment with existing provision. 5.4 UKSPF funding has been fully allocated for 2022-23 to 2024-25. Recognising individual differences between England, Scotland, Wales and Northern Ireland, the allocation method was adapted for each part of the UK. The department set out a methodology note explaining how it ensured funding going to Scotland, Wales, and Northern Ireland meets funding received under European Structural Funds. Future UKSPF funding is a matter for Spending Review 2024. 5.5 The department delegated delivery of UKSPF in Scotland and Wales to local authorities; and working closely with local partners in Northern Ireland. This means local people will play a leading role in prioritising and tailoring UKSPF to local needs. 5.6 To ensure there is a platform to discuss issues of mutual interest within the department's portfolio, officials worked with devolved governments to establish an Interministerial Group, which first met on 24 May. In addition, the inaugural meeting of the Interministerial Standing Committee in late March was chaired by the department’s Secretary of State and attended by the First Ministers of Scotland and Wales and intergovernmental relations ministers, to discuss strategic and cross-cutting elements of levelling up.