‘Negligible’ progress to replace EU funds in Wales, MPs warn

A cross-party group of MPs has criticised the government’s ‘lack of priority’ in delivering a replacement for EU regeneration funds in Wales.

In a new report, the Welsh affairs select committee said ‘negligible’ progress has been made with the UK Shared Prosperity Fund, which is due to replace EU regeneration funds.

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.

The committee has called on the government to offer urgent reassurance on the Shared Prosperity Fund and to guarantee that there will be no cliff-edge end to EU funds from January 2021.

The report also calls for a firm date for when substantive information about the fund will be made available.

This includes what it will look like and how it will be funded and administered.

In July, a study by the Institute for Fiscal Studies (IFS) warned that Cornwall was likely to be the biggest loser under the UK Shared Prosperity Fund.

‘The UK’s withdrawal from the European Union and the impact of the COVID-19 pandemic makes this an exceptional time, and unique opportunity, to design a more responsive and adaptable system of structural and regional funding,’ said committee chair, Stephen Crabb.

‘However, more than three years after the UK government announced its intention to replace EU funds with a Shared Prosperity Fund, there is still no clarity as to what this fund will look like. This is a simply unacceptable state of affairs. We are calling for the government to bring forward their proposals and to provide urgent reassurance that there will be no funding cliff edge in January 2021,’ he added.

‘The switch to the Shared Prosperity Fund represents an opportunity to reset and re-evaluate Wales’ economic priorities and to develop a new system that tackles the root causes of Wales’ economic underperformance. While there are differences of opinion as to how the fund should be administered, we are clear that the fund should be built upon the principles of cooperation and partnership between the UK government, devolved administrations and local government.’

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