EU regeneration cash could end up going back to Brussels

More than £730m of EU regeneration funding risks going unspent and being sent back to Brussels, council leaders have warned.

The Local Government Association has warned that if the European Social Fund money is not allocated by the government before the end of the year then it could be lost forever.

The fund – which the UK is continuing to participate in until the end of the programme – is used for supporting employment, skills and training.

With unemployment expected to rise and local businesses likely to struggle to get back on their feet, the LGA said investment in employment and skills will be more important than ever in the coming months.

It added it is vital that the remaining funding is used to respond quickly to support people and places where it is most needed.

The local government group said also concerned about the ongoing lack of detail around the Government’s proposed UK Shared Prosperity Fund, which will replace EU funding.

The LGA has called on the government to provide the details and consultation of the fund, to help give communities the long-term funding certainty they need to rebuild and renew their economies following this crisis.

It comes after a study by the Institute for Fiscal Studies (IFS) raised similar concerns.

‘The government needs to make sure the remainder of this fund reaches the local communities that need it desperately following the devastating economic impact of COVID-19,’ said the chairman of the LGA’s EU Exit taskforce, Cllr Kevin Bentley.

‘Councils and combined authorities are ready to work with government to make sure that local residents and economies can reap the benefits of this funding.

‘As the country looks towards how we bounce back from COVID-19, this funding is more important than ever,’ added Cllr Bentley.

‘This is vital money which as it stands risks going unspent and returned to Brussels, when instead it can and should be invested in jobs, skills and training critical to the national recovery.’

Photo Credit – Stux (Pixabay)