9. Debate: The UK Levelling-up and Shared Prosperity Funds

Part of the debate – in the Senedd at 5:41 pm on 15 June 2021.

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Photo of Paul Davies Paul Davies Conservative 5:41, 15 June 2021

Diolch, Llywydd, and I move the amendment tabled in the name of my colleague Darren Millar. I'm sure that all Members in this Chamber share the ambition to find a way of reducing inequalities in our communities, and so it's incumbent on all of us to work together to find the best possible way of ensuring that investment reaches the areas that need it most. The UK Government has made it clear that it's committed to levelling up across the whole of the United Kingdom to ensure that no community is left behind, particularly as we recover from the COVID-19 pandemic. And to support these objectives, as we all know, the UK Government has launched new investment programmes, like the levelling-up fund and the community renewal fund, which will make a huge difference in communities across Wales. I was pleased to hear the UK Minister of State for Regional Growth and Local Government recently confirm to the Welsh Affairs Select Committee that there will be a minimum 5 per cent in the first round of the levelling-up fund that will be allocated to Wales.

Now, of course, the UK shared prosperity fund is the vehicle by which the UK Government intends to deliver regional funding. As we make clear in our amendment, we believe that the annual budget for the fund should be no less than the funding streams that it's replacing. Further details will be published in a framework later this year before the fund launches in 2022, but what we do know is that the amount of money that is going to be spent in Wales when the shared prosperity fund comes in will be identical to or higher than the amount of money that came from the European Union, and I welcome the commitment to maintain those levels of funding. And in light of the repeated commitments from UK Government Ministers, it's disingenuous to perpetuate a myth that somehow Wales will lose out financially from the shared prosperity fund.

Now, moving forward, it's important that mechanisms are developed to ensure that investments continue to be made in the longer term, and that there's a robust system in place to monitor the effectiveness of projects that receive funding. Sadly, during the previous round of European structural funds, Wales received more than double the amount per person than any of the other devolved nations and English regions, and so I can appreciate why these funds are so particularly important. However, the UK Government has stated that the shared prosperity fund will improve on the delivery of structural funds in a number of ways, such as quicker delivery of funding, better targeting of places and people in need and, hopefully, less of an administrative burden through reduced forms and targets.

Of course, it's vital that there is engagement with devolved administrations, and as I understand it, the UK Government has set up an inter-ministerial group in order for UK Ministers to have regular conversations with Welsh Ministers, and I welcome very much that engagement. I also understand that as part of the levelling-up fund process, there is a shortlisting stage where the UK Government will consult the Welsh Government on their views about individual projects, and whether they conflict with any Welsh Government policies. Therefore, the Welsh Government will have a vital role in assessing shortlisted bids, and have a say in ensuring that the right bids receive the right funding.

Llywydd, I welcome the UK Government's commitment to pass on funding directly to local authorities. We want to see money invested in communities and making a difference. We do not need further bureaucracy and hold-ups in the process of getting money out there to communities and projects that need it. We shouldn't lose sight of what's important here. I think the Member for Ogmore is clearly losing sight of that. The fact is the shared prosperity fund will support improved employment outcomes and support and develop local economies. We have an opportunity to replace a complex and bureaucratic system with a much more simplified approach to local growth funding. Surely—surely—that's something that Members here should be welcoming.

And yet, the Welsh Government has spent time and effort opposing the direct channel of funding to local authorities. If the Welsh Government truly believes in devolution, then devolving these responsibilities and decisions to local authorities is true devolution and surely is the right thing to do. I've heard a lot of rhetoric this afternoon from the Minister, but I would remind him that Wales has two Governments. As someone who believes in the United Kingdom, I would have thought that he would welcome that, but clearly he should be sitting on those benches with the nationalists, I think.

Point 4 of the Welsh Government's motion highlights the concerns of some local authority leaders. However, in the Welsh affairs select committee evidence session, the leader of Powys County Council welcomed the levelling-up agendas, arguing, and I quote:

'In many ways this is a positive for Powys because we are one of the border counties between England and Wales. In the past, we have not benefited from EU structural funds as much as other areas of Wales—we have just had a very small amount—so in that sense we are extremely grateful for this.'

Indeed, later in that committee session, the Parliamentary Under-Secretary of State for Wales made it clear that local authority leaders have been very positive in the discussions he's had with them, and I believe we should welcome that and build on that positive approach.

I'd hope Ministers would welcome the efforts being made to accelerate the delivery of that funding so that the money can reach our communities and actually make a difference. However, to my mind, at least, it seems as if the focus has been lost, and instead of focusing on the huge positive benefits that this fund can bring to Wales, Ministers are more concerned with their own role in rubber-stamping projects. Therefore, I urge the Minister and Members here today to remember what is important here, and that's tackling inequalities in our communities and getting vital funding and investment in those areas. I urge Members to support our amendment.