Thank you, Llywydd. I make this statement in order to update Members on the progress the Welsh Government is making with stakeholders to develop successor arrangements for replacement of EU funds post Brexit. The timing of this statement is very relevant. We now face leaving the European Union by the end of this month. But also, we have less than 12 months before we reach the point where we would expect successor EU programmes to be in place. The funding provided currently by the European Union will start to gradually tail off at that point, putting investment in our businesses, people and communities at risk.

Over a period of 20 years, Wales has benefited significantly from EU structural and investment funds—funding worth £375 million per annum. Where damaging austerity policies have had a severe impact on our communities, EU funds have helped bring new and better jobs and given people the skills they need to do those jobs. Businesses have been supported, including through the financial crisis. The boost was given to our infrastructure and we were assisted in narrowing the gaps in terms of economic inactivity and research capacity in Wales and as compared to the rest of the UK. It is vital that Wales has an ongoing source of investment in order to avoid taking retrograde steps. We must secure funding to help reduce inequalities within the UK and to support economically vulnerable regions, and we know that it's those regions that will be hit hardest by Brexit.

After setting out repeatedly our principles of 'not a penny less, not a power lost', the new UK Government has indicated that its proposed shared prosperity fund will, at a minimum, match the size of the funds received by each nation within the UK at present. Crucially, however, we still await details on how this funding will come to Wales and confirmation of whether devolution, voted for twice by the people of Wales, will be respected.

If the Prime Minister is genuine about upholding and strengthening the union, then respecting the devolution settlement will be one of the UK Government's first tests.