The UK government has published the funding formula that will be used to distribute money to local authorities in Wales to replace them with the EU Structural Funds for Europe’s poorest regions. Wales will receive 5 585 over the next three years, but there is a heated debate over whether this is enough to replace the money provided by the EU. See more about it here.
Instead of spending money in areas with a per capita Gross Value Added (a measure of economic output) of 75% of the EU average, the funds will be distributed much more widely. The guy will see:
40% of the cash will be allocated on a population basis. 30% will be allocated according to a formula used by Westminster to fund projects under the previous Community Renewal Fund (CRF). and 30% will be allocated according to the Welsh indicators of multiple deprivation.
You can see more about how the Community Renewal Fund works here. He was criticized for an opaque selection process in which 100 regions were selected to benefit with minimal explanation of why. Some of Wales’ poorest areas were excluded, while richer areas such as Richmond in Yorkshire, where Chancellor Rishi Sunak is a member, were included.
The Welsh government had suggested that 30% of the cash should be allocated on a population basis and 70% according to the Welsh Multiple Deprivation Indicators – which would see the money go to the poorest areas of Wales – but this was rejected by UK Ministers . To receive our free daily update on the nation’s biggest issues, Wales Matters, click here.
In practice, the Welsh government believes that the millions of pounds that would have gone to the poorest communities in the valleys and some coastal areas would have gone to more prosperous areas that happen to vote Conservative. Economy Minister Vaughan Gething issued a statement saying: “Since 2016, the Welsh government has been working hard to create the strongest possible model for regional investment after the EU in Wales, called the Regional Investment Framework. This included co-production with stakeholders, public consultation and work to integrate international best practices with the OECD. “During this period, we have also made frequent efforts to work with UK Ministers on these projects. However, it was only this month that the UK government offered substantial negotiations to publish the SPF newsletter before the pre-election period. “Despite this unattainable timetable, we have sought to create a corporate approach to this Fund that respects the decentralization arrangement and aligns with the clearly expressed wishes of people and organizations in Wales about how to invest and post-EU funding is provided. “Although there has been some movement, the funding plans set out by the UK Government do not reflect the specific needs of the Welsh communities. We are concerned that very few will reach those communities most in need. The Welsh government proposed an alternative formula that would distribute funding more fairly across Wales according to financial needs, but this was rejected by the UK government. “The proposed role of the Welsh Government also lacks a real codecision function that is necessary to maximize investment and respect decentralization in Wales. “On this basis, we could not support the UK Government’s approach to this Fund and we can not support their decision to redirect economic development funds away from those areas where poverty is particularly high. This setback is exacerbated by the dramatic reduction in funding that Wales would have received if the UK government had fulfilled its commitment to fully replace EU funds for Wales. “We have made it clear to the UK Government that this has implications for the role that the Welsh Government can play in the next steps of delivery and implementation and the commitment of our resources.” Read more related articles Read more related articles
