Commission calls for £15bn UK Shared Prosperity Fund

An independent commission has called on the government to ‘go big or go home’ and set the UK Shared Prosperity Fund at £15bn for 20 years.

In its final report, which is published today (27 February), the UK2070 Commission warns the UK is one of the most ‘spatially unequal’ economies in the developed world and calls on the government to take action to rebalance spending and investment.

One of the commission’s recommendations is around the UK Shared Prosperity Fund, which is due to replace various EU regeneration funding streams.

The report recommends ministers triple the size of the fund to £15bn per annum for 20 years and ensure it has ‘clear spatial priorities’.

The fund was first announced by the Conservatives in their 2017 general election manifesto, but details remain scant about how the fund will work or how much money will be allocated to it.

In January, a report by the Industrial Communities Alliance warned the fund needs to be set at £4bn a year if – as widely predicted – it is to be merged with the British government’s Local Growth Fund.

And in February, the London Councils and Core Cities groups both called for the fund to be devolved, as part of their budget submissions.

‘Many people in Britain feel left behind by growth elsewhere and that has contributed to an acrimonious debate about Europe,’ said commission chair, Lord Kerslake.

‘We now face a decade of potential disruption – leaving the European Union, confronting the impact of climate change and adjusting to the fourth industrial revolution.

‘Our research shows clearly that these inequalities did not grow up overnight,’ added Lord Kerslake.

‘They reflect an over-centralised system that fails to comprehend the reality of regional need and consistently comes up with policies that are either under-resourced, too fragmented, or too short-lived to make a difference.

‘Some policy guidelines have actively stacked the odds against the regions. Time is not on our side and we cannot afford to keep on repeating those mistakes. government must therefore think big, plan big and act at scale. Bluntly, if it can’t go big, it should go home.’

Commenting on the report, the Joseph Rowntree Foundation’s executive director, Claire Ainsley, said: ‘The government has an unparalleled opportunity to be ambitious in the size and scope of its investment in regional and local growth – but no eye-catching scheme or quick fix is going to loosen the grip of poverty across the UK.

‘Boosting the Shared Prosperity Fund will deliver opportunities in the areas that need them most. We also need to see ambitious and sustained investment in truly affordable housing, transport between different regions, and our social security system so that families can stay afloat when times get tough.’

The 2070 Commission’s final report – Make No Little Plans – is available to read here.

Photo Credit – Free-Photos (Pixabay)