The UK Government has approved plans to invest £585 million to replace EU investment no longer received from Brussels after Brexit. However, the Welsh Government says it does not reflect the distinct needs of Welsh communities.
The Department for Levelling Up, Housing and Communities (DLUHC) says it has worked with local leaders across the country to apportion money from the new UK Shared Prosperity Fund (UKSPF) to communities most in need.
The fund replaces the EU structural funding used by councils to help enhance business, expertness, skills and regeneration.
Under the investment plans approved on Monday, 5th December, the UK Governments says that Wales is receiving at least as much funding as it did before, with projects free from EU processes that will now allow local people have a greater say in how the money is used.
The UK Government also claims that Councils have drawn up plans capable of supporting local town centres, helping people improve their skills and enabling local businesses to grow.
Welsh Secretary David TC Davies said: “After more than 40 years in the EU, we now have an opportunity to decide exactly how and where to spend our money in Wales.
“The £585m allocated to Wales under the UK Shared Prosperity Fund will make a huge difference and can be better targeted than EU Structural Funds were.
“Working with Wales’ local authorities we will ensure that funding goes where it is needed most, bringing greater prosperity and opportunity to our communities.”
Levelling Up Minister Dehenna Davison said: “This marks an important milestone as we help communities realise their full potential by taking full advantage of the benefits of being outside the European Union.
“I am pleased that all four investment plans for Wales have been approved and we will now work with the lead local authorities to agree the next steps.
“The government is relentless in its pursuit of levelling up and the delivery of this Fund marks another huge step forward in spreading opportunity more evenly across the entire United Kingdom.”
Across Wales, the money will be spent on levelling up in three key areas:
Communities and place: projects could include improving parks and green spaces, access to arts and culture, developing sports facilities and fostering a greater sense of pride in place.
Supporting local business: projects could include support for entrepreneurship, grants for research and development and helping local businesses to develop new and innovative products and services.
People and skills: projects could include specialist support for people with a health condition facing additional barriers into decent jobs and targeted support to help individuals develop skills for the future. A multi-million pound adult numeracy programme, Multiply, forms part of the fund and has been allocated across the UK to support people to improve their economic and life prospects by developing their numeracy skills.
The UK Government also maintains its flexible approach also means that councils and local partners will have the opportunity to adapt their plans to reflect new economic priorities over the period to March 2025.
UK funding for the UKSPF will be £2.6 billion between 2022 and 2025, with this figure reaching £1.5 billion per year by March 2025.
Vaughan Gething MS, Minister for Economy said: “Since 2016, the Welsh Government has worked intensively to create the strongest possible model for post-EU regional investment in Wales, called our Framework for Regional Investment. This has included co-production with stakeholders, a public consultation, and a project to integrate international best practice with the OECD.
“During this time, we also made frequent attempts to engage with UK Ministers on these plans. However, it was not until this month that the UK Government offered a meaningful negotiation in order for the SPF prospectus to be published ahead of the local government pre-election period.
“Despite this unfeasible timetable, we attempted to create a partnership approach to this Fund that respects the devolution settlement and aligns with the clearly expressed wishes of people and organisations in Wales on how post-EU funding should be invested and delivered.
“Although there has been some movement, the funding plans set out by the UK Government today [yesterday] do not reflect the distinct needs of Welsh communities. We are concerned that too little will reach those communities most in need. The Welsh Government proposed an alternative formula which would distribute funding more fairly across Wales according to economic need, but this was rejected by the UK Government.
“The proposed role of the Welsh Government also falls short of a genuine co-decision making function essential to maximising investment and respecting devolution in Wales.
“On this basis, it has not been possible to endorse the approach the UK Government is taking on this Fund and we cannot support their decision to redirect economic development funds away from those areas where poverty is most concentrated in particular. This regressive decision is compounded by the dramatic reduction in the funds Wales would have received had the UK Government delivered its pledge to replace EU funds for Wales in full.
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