4. Statement by the Minister for Economy: The Shared Prosperity Fund and Levelling-up Fund

Part of the debate – in the Senedd at 3:56 pm on 28 September 2021.

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Photo of Paul Davies Paul Davies Conservative 3:56, 28 September 2021

Diolch, Dirprwy Lywydd. It may surprise the Minister that I start off on a note of agreement with him regarding the lack of pace in responding to bids that have been submitted to the community renewal fund. We need to see much more progress.

Now, today's statement calls for further information and detail from the UK Government, and, in fairness, if the funds are to be delivered effectively then clearly collaboration is crucial. Whilst I appreciate that a new Secretary of State for housing, communities and local government has been appointed to oversee this funding, local communities across Wales are still waiting for vital information regarding their bids, and it's essential that that information is forthcoming. Now, the Minister has made it clear today that he has written to the new Secretary of State to say that he is open to meaningful engagement. However, given the tone of his statement, perhaps he can confirm whether he has requested an urgent meeting so that he can make these points directly to the Secretary of State.

Dirprwy Lywydd, we all want to see this funding reach communities in Wales and make a big difference. At its core, the community renewal fund empowers local communities by giving local authorities a direct role in delivering that investment. We have just seen how resilient our local authorities have been during the pandemic, and I believe they are perfectly placed to deliver this investment. Devolving the delivery of these funds to local authorities is something the Welsh Government should be supporting. And yet, today's statement shows again that the Welsh Government has used the levelling-up agenda to continue a constitutional conflict with counterparts at Westminster. And so, I want to remind the Minister that the people of Wales are served by two Governments, not one, and it has never been part of the devolution settlement that local government in Wales should become a no-go area for the UK Government. Indeed, rather than the usual 'blame Westminster' rhetoric, perhaps the Minister could tell us what engagement and support the Welsh Government has offered to local authorities to support them through this process.

Now, the Minister has repeatedly said that if the UK Government is serious about future prosperity here in Wales then it must provide Wales with a fair share of UK spending, and he reiterated those comments again today. Well, the UK Government has made it very clear that Wales will not lose out via the shared prosperity fund, and the profile of spending will be set out in the next UK spending review, which is expected this autumn. In the meantime, there are opportunities here for the Welsh Government to support the UK Government by encouraging the continued use of the experience, and indeed expertise, that has been built up during decades of delivering EU funds here in Wales. So, I'd be grateful if the Minister could tell us what he and his officials are doing to promote that expertise and ensure that it's retained under these new funding streams.

Now, I think it's fair to say that the community renewal fund and the wider shared prosperity fund will be judged on their outcomes, and it is very early days to form any serious assessment, but we have to look at where opportunities lie to constructively engage on this agenda, rather than spending time and effort politically point scoring. The Welsh Government could be using its time to tell us its own plans for supporting community renewal and delivering economic prosperity, but instead we're treated to another anti-Westminster lecture. The FSB are right to say this should not stop Welsh Government from outlining its economic development strategy for the future in detail, including where business support sits within it and aligns with its vision, values and principles. Therefore, I hope the Minister will take the opportunity today to tell us what the Welsh Government is doing to rebuild Wales's economy, what is being done to drive innovation, to create jobs and to drive lasting economic change.

Today's statement also refers to the FSB's calls, and one of those is for the Welsh Government to use this opportunity to outline its vision through an economic development Bill. As they suggest, this would also set the parameters and principles underpinning all of its institutions, remits and goals, and its approach to business support and its aims. Of course, it's vital that Business Wales is protected under the shared prosperity fund, at least at its current levels, and that there's longer term funding stability for the Development Bank of Wales. I'd be grateful if the Minister could confirm whether he will be introducing an economic development Bill, what internal discussions are taking place to discuss the future of Business Wales, and what action the Welsh Government is taking to support the Development Bank of Wales in the longer term.

In closing, Dirprwy Lywydd, I accept that there are some justified concerns in the Minister's statement today, and I hope that the Welsh Government will push for meaningful engagement to take place so that these funds can be delivered as effectively as possible for us here in Wales.