Wales and the Shared Prosperity Fund

Welsh Affairs Committee Closed Inquiry
Opened: 11 Feb 2020 Closed: 14 Dec 2020 Parliament page
The Welsh Affairs Committee has launched an inquiry into the proposed UK Shared Prosperity Fund. The fund is earmarked to replace European Structural and Investment Funds (ESI) that puts £375 million into the Welsh economy each year. Read the key points in an interactive summary of our report
13 Recommendations
7 Conclusions
1 Report
4 Letters
1 Event
Activity timeline 7 events
25 Jan
2021
Correspondence
25 Jan
2021
Correspondence
14 Dec
2020
Report published
2 Oct
2020
Report published
23 Jun
2020
Correspondence
11 Jun
2020
Correspondence
10 Mar
2020
Formal meeting · The Wilson Room, Portcullis House
Title HC No. Published Items Response
4th Report: Wales and the Shared Prosperity Fund: Priorities fo… HC 90 2 Oct 2020 20 Responded
Recommendations & Conclusions
20 results
1 Conclusion Acknowledged
4th Report: Wales and the Shared …
Despite announcing the Shared Prosperity Fund more than three years ago, the Government appears to...
Despite announcing the Shared Prosperity Fund more than three years ago, the Government appears to have made negligible progress in developing its replacement for European Structural and Investment funding. Its repeated promises of a consultation and of imminent announcements have … Read more
Government Response
The government acknowledges the UK Shared Prosperity Fund (UKSPF) will succeed EU structural funds and contribute to levelling up. It commits to providing additional funding in 2021-22 to help local areas prepare for the UKSPF, with further details to be published in the New Year.
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2 Recommendation Accepted in Part
4th Report: Wales and the Shared …
The UK Government must urgently work with the devolved governments of Wales, Scotland and Northern...
The UK Government must urgently work with the devolved governments of Wales, Scotland and Northern Ireland to agree priorities for the Shared Prosperity Fund and to co-create the details regarding how the Fund will work. It must provide evidence of … Read more
Government Response
The government commits to working with devolved administrations and local communities on the UKSPF and states that EU structural fund investment will be higher in 2021-22, with additional funding provided for 2021-22; however, it does not explicitly guarantee no cliff edge specifically regarding COVID-19 response funding beyond January 2021 or agree to the specific October/November deadlines for co-creation.
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3 Conclusion Acknowledged
4th Report: Wales and the Shared …
We acknowledge the difficulties in assessing the impact of ESI funds in Wales, particularly in...
We acknowledge the difficulties in assessing the impact of ESI funds in Wales, particularly in the absence of the counterfactual question of what would have happened without them. However, it is clear that while certain sectors, particularly higher education, the … Read more
Government Response
The government acknowledges the committee's observation that EU structural funds did not deliver transformative change for the Welsh economy, asserting that the new UKSPF will redefine domestic priorities and target investment to level up the UK.
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4 Recommendation Accepted
4th Report: Wales and the Shared …
The development of the Shared Prosperity Fund represents a unique opportunity to re-evaluate Wales’ economic...
The development of the Shared Prosperity Fund represents a unique opportunity to re-evaluate Wales’ economic priorities in light of the economic fallout from the pandemic, to develop a funding system that better reflects Welsh needs, and which includes a broader … Read more
Government Response
The government accepts the recommendation, stating the UKSPF will invest in people, communities, and local businesses to level up and create opportunity, focusing on improved employment outcomes, driving productivity, and addressing skills shortages in Wales, and provides £220m additional funding for 2021-22.
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5 Recommendation Accepted
4th Report: Wales and the Shared …
We recommend that the UK and Welsh Governments use the development of the Shared Prosperity...
We recommend that the UK and Welsh Governments use the development of the Shared Prosperity Fund as an opportunity to jointly reassess their economic development priorities, particularly in light of the economic damage caused by COVID-19. In designing the Shared … Read more
Government Response
The government will provide £220m in 2021-22 for local areas to pilot programmes and new approaches, and the longer-term SPF will invest in people, communities, and business to improve employment, productivity, and address skills shortages in Wales.
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6 Recommendation Accepted in Part
4th Report: Wales and the Shared …
The UK Government has repeatedly committed to ensuring Wales does not lose out as a...
The UK Government has repeatedly committed to ensuring Wales does not lose out as a result of the switch from European Structural Funds to the Shared Prosperity Fund and the evidence overwhelmingly states that Wales should not end up worse … Read more
Government Response
The government accepts the recommendation in part, committing to matching current EU receipts, ensuring the UKSPF operates over multiple years, and targeting places most in need; however, the specific needs-based formula and detailed funding profile will be set out at the next Spending Review.
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7 Recommendation Accepted
4th Report: Wales and the Shared …
In the current changing economic circumstances, we are unable to recommend a headline figure for...
In the current changing economic circumstances, we are unable to recommend a headline figure for Wales’ allocation of the Shared Prosperity Fund. However, we call on the Government to honour its commitment to maintain at least the current levels of … Read more
Government Response
The government commits to matching current EU receipts with UK-wide funding averaging £1.5 billion annually, ensures multi-year funding for the UK Shared Prosperity Fund, and intends to work with the Welsh Government. Further details will be provided in a UK-wide investment framework in the spring and funding profile at the next Spending Review.
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8 Conclusion Acknowledged
4th Report: Wales and the Shared …
Despite the positive feedback we have received about the performance of the Welsh European Funding...
Despite the positive feedback we have received about the performance of the Welsh European Funding Office in administering ESI funds, it is clear that for many respondents the current system of structural funding has been too centralised and overly bureaucratic. … Read more
Government Response
The government acknowledges the committee's observation about the overly bureaucratic nature of EU structural funds and recognises the opportunity to develop a new, simplified, and integrated approach for the UKSPF, with further details to be published in the spring.
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9 Recommendation Acknowledged
4th Report: Wales and the Shared …
If the Shared Prosperity Fund is to offer a more open and responsive system of...
If the Shared Prosperity Fund is to offer a more open and responsive system of funding, the UK Government and Welsh Governments should learn the lessons from how EU funds have been administered under the ESI schemes, including the criticisms … Read more
Government Response
The government acknowledges the problems of bureaucracy in EU funds and the opportunity for a simplified UKSPF, but does not yet detail the specific lessons learned, the review work undertaken, or how they intend to overcome these problems, deferring further details to a UK-wide investment framework in the spring.
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10 Conclusion Acknowledged
4th Report: Wales and the Shared …
Despite repeated assurances from UK Government that it would respect the devolution settlements of Wales,...
Despite repeated assurances from UK Government that it would respect the devolution settlements of Wales, Scotland and Northern Ireland, there are considerable ambiguities about where power will lie in relation to the Shared Prosperity Fund. It is unclear whether, as … Read more
Government Response
The government acknowledges the committee's concern by stating its intention to work with the Welsh Government, local communities, and other devolved administrations to ensure the UK Shared Prosperity Fund supports citizens in Wales, with further details to be published in upcoming frameworks.
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11 Recommendation Accepted
4th Report: Wales and the Shared …
There are differences of opinion as to where the precise balance of power and responsibility...
There are differences of opinion as to where the precise balance of power and responsibility should lie for the oversight and administration of the Shared Prosperity Fund. However, whether the UK Government takes on a commissioning role for, or fully … Read more
Government Response
The government accepts the recommendation, stating its intention to work with the Welsh Government, local communities, local authorities, and Devolved Administrations to ensure the UKSPF supports citizens in Wales, with further details on funding and framework to be published in the New Year and spring.
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12 Recommendation Acknowledged
4th Report: Wales and the Shared …
The UK Government should work with the devolved administrations and local government to develop a...
The UK Government should work with the devolved administrations and local government to develop a memorandum of understanding that will underpin the operation of the Shared Prosperity Fund, this memorandum should be built around a partnership approach and provide a … Read more
Government Response
The government acknowledges the need for genuine joint working and engagement for the Shared Prosperity Fund by stating its intention to work with the Welsh Government, local communities, and other stakeholders, but does not explicitly commit to developing a memorandum of understanding.
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13 Recommendation Accepted
4th Report: Wales and the Shared …
Local authorities have played an important role in the delivery of ESI funding with their...
Local authorities have played an important role in the delivery of ESI funding with their on-the-ground knowledge and expertise and the UK and Welsh Governments should seek to ensure that the Shared Prosperity Fund utilises their experience. While the full … Read more
Government Response
The government outlines how the UKSPF will enable local places to shape investment and complement City and Growth Deals, confirming that officials have discussed lessons learned from these deals with devolved administrations and local authorities.
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14 Recommendation Accepted
4th Report: Wales and the Shared …
As part of the Memorandum of Understanding that should underpin the Shared Prosperity Fund, the...
As part of the Memorandum of Understanding that should underpin the Shared Prosperity Fund, the UK and Welsh Governments ought to give serious consideration to the role that local government in the delivery of the Fund. Both the UK and … Read more
Government Response
The government states that the UKSPF will enable local places to shape investment and complement City and Growth Deal funding, confirming that officials have discussed lessons learned from these deals with devolved administrations and local authorities.
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15 Conclusion Accepted
4th Report: Wales and the Shared …
For the past twenty years, Wales has received more European Structural Funds than any other...
For the past twenty years, Wales has received more European Structural Funds than any other part of the UK in an attempt to bring the Welsh economy up to the EU average. This funding which is worth hundreds of millions … Read more
Government Response
The government acknowledges the pandemic's impact and details its plans to provide £220m in additional funding for 2021-22 for local areas to transition from EU structural funds, with the long-term UKSPF investing in people, communities, and businesses to level up.
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16 Recommendation Not Addressed
4th Report: Wales and the Shared …
However, with that funding due to taper off in less than three months’ time, communication...
However, with that funding due to taper off in less than three months’ time, communication from Ministers, and substantive proposals for the Shared Prosperity Fund, have been conspicuous in their absence. For more than three years, we have witnessed a … Read more
Government Response
The government responds with a general vision for the UKSPF, highlighting its intent to succeed EU structural funds and level up the UK, but does not explicitly commit to publishing detailed proposals or address the urgency requested by the committee.
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17 Conclusion Acknowledged
4th Report: Wales and the Shared …
The impact of EU funding is hard to measure, and it is quite possible that...
The impact of EU funding is hard to measure, and it is quite possible that Wales would have been significantly worse off without it. However, this funding has not been a catalyst for a transformation in the fortunes of the Welsh economy.
Government Response
The government acknowledges the committee's observation about the limited transformative impact of past EU funding, explaining that the new UKSPF will address this by redefining domestic priorities and targeting investment to level up communities across the UK.
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18 Recommendation Accepted
4th Report: Wales and the Shared …
The switch to the Shared Prosperity Fund is an opportunity to reset and re-evaluate Wales’...
The switch to the Shared Prosperity Fund is an opportunity to reset and re-evaluate Wales’ economic priorities post-Brexit and post-COVID-19 and to develop a Shared Prosperity Fund that tackles the root causes of Wales’ economic underperformance. The funding pot should … Read more
Government Response
The government commits to ramping up UKSPF investment to at least match current EU receipts, with a portion targeting places most in need, and confirms the fund will operate multi-annually, with its funding profile to be set at the next Spending Review.
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19 Recommendation Accepted in Part
4th Report: Wales and the Shared …
Given the publication of the UK Government’s Internal Market Bill, it is all the more...
Given the publication of the UK Government’s Internal Market Bill, it is all the more urgent that clarity and detail is provided about the Shared Prosperity Fund. However designed, the expertise gained in administering structural funds should not be lost, … Read more
Government Response
The government commits to embracing a partnership approach by working and engaging with devolved administrations, local communities, and other organisations to ensure the UKSPF supports citizens, and states further details regarding preparatory funding will be published.
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20 Conclusion Accepted
4th Report: Wales and the Shared …
The UK’s withdrawal from the European Union and the impact of the COVID-19 pandemic makes...
The UK’s withdrawal from the European Union and the impact of the COVID-19 pandemic makes this an exceptional time, and opportunity, for the governments of the UK to design a more responsive and adaptable system of structural and regional funding. … Read more
Government Response
The government outlines its plans for the UK Shared Prosperity Fund (UKSPF) to succeed EU structural funds, aiming to level up and create opportunity across the UK through investments in businesses, people, and communities, working with Devolved Administrations.
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Government Response AI assessment · 20 of 13 classified
Accepted 9
Accepted in Part 3
Acknowledged 7
Not Addressed 1
Total 13 recs + 7 conclusions
Correspondence 4 letters
25 Jan 2021 To committee Letter from the Secretary of State for Wales, re UK Shared Prosperity Fund, 22 January 21
Parliament page
25 Jan 2021 To committee Letter from the Counsel General and Minister for European Transition, Welsh Government, re Wales and the Shared Prosperity Fund, 11 January 21
Parliament page
23 Jun 2020 To committee Letter from the Minister for Regional Growth and Local Government in response to joint letter from Select Committee Chairs re the Shared Prosperity Fund, 19 June 20
Parliament page
11 Jun 2020 To committee Joint letter from Select Committee Chairs to Secretary of State for Housing, Communities and Local Government re the Shared Prosperity Fund, 5 June 20
Parliament page