Vaughan Gething MS, Minister for Economy
‘Yesterday (5 December 2022), the UK Government announced the approval of four regional investment plans for the Shared Prosperity Fund (SPF) in Wales, the replacement to former EU funding that the Welsh Government was responsible for determining with scrutiny from in the Senedd. This means that with less than four months remaining in this financial year, funding allocations for 2022-23 can now be released to Welsh local authorities to spend on projects covering communities and place, local business, and people and skills that should have already commenced.
The entire SPF allocation of £585 million to Wales is £1.1 billion less compared to EU funds. This dramatic funding cut has been exacerbated by a series of delays since the SPF was first announced in 2017. In contrast, the Welsh Government was ready to start a post-EU investment programme almost two years ago in January 2021. By then we had already worked intensively with the OECD and our Welsh partners to create the strongest possible model for Wales. It is important to remember that the £585 million figure for Wales is before the £101 million top slice imposed by the UK Government for the ‘Multiply’ programme that they have created in the devolved area of adult numeracy.
As a direct result of the UK Government’s approach to the SPF, the Welsh Government and the Senedd is being bypassed on a plainly devolved matter. Universities, colleges, the third sector and businesses have also been shut out of directly accessing funding. As a result many of these sectors are now reporting redundancies and the closure of vital schemes.
In light of the economic crisis and the hole in the public finances the UK Government must rethink the future direction of SPF including a co-decision-making role for Welsh Ministers and support for previously EU funded critical pan-Wales programmes. A number of these are vital to supporting productivity and growth, such as Business Wales, apprenticeships, the Development Bank and our innovation programmes.’
To read the full statement please select the following link Written Statement: Delivery of the UK Shared Prosperity Fund (6 December 2022) | GOV.WALES