7. Plaid Cymru Debate: Post-Brexit funding

Part of the debate – in the Senedd at 4:59 pm on 25 May 2022.

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Photo of Peter Fox Peter Fox Conservative 4:59, 25 May 2022

I welcome the debate today and I welcome Huw's position of not making political points, and I won't try to make any either. But I agree with my colleague Paul Davies on his summation of the situation, and I too am firmly of the belief that the UK Government must honour its repeated commitment to ensure that Wales does receive its share of post-EU funding. From what I'm already hearing within the Finance Committee, and we're yet to see the response, there is a clearer picture on post-European funding and clearly a misunderstanding or a different position being taken here. Clearly, clarity would be important from both sides, and that isn't there, that transparency isn't there.

But I do think we've got to be careful that we don't see this as a threat constantly to devolution; this is an opportunity, and, I think, as Huw says, an opportunity for governments to work together to drive the very best for their local communities. I know as a past leader that there is an appetite for devolution to local authorities. They may not come out and say it in some areas, but any leader of a council and their cabinets who do not want to have access to the levers to make real change in their communities shouldn't be leader. They should be looking to lever in moneys to help their communities, close to communities, to help businesses and drive up opportunities.

We have to recognise that there's been a significant amount of money flowing already through the various schemes—£121 million, we know, for projects to improve infrastructure in Wales through the levelling-up fund; £46 million for 165 projects through the community renewal fund; and we know £585 million of shared prosperity funding, along with the tail-off European funding, will be spent and match those opportunities that were there prior to.

But, Llywydd, I wasn't going to make my contribution around just figures. I wanted to think about this debate in a slightly different way. What I think is missing from the debate is a discussion about why we still need this funding in the first place, following decades of similar investments. As part of the European Union, Wales received substantial funding via the structural funding mechanism, which was supplemented by UK Government funding, but, as we well know, this was because most of Wales fell under the 'less developed' category, which was regions below 75 per cent average EU per capita gross domestic product. And what did this fund really achieve? Yes, there are examples of good projects that have benefited communities, and yet economic development has still lagged behind, despite the various initiatives and funding streams. For example, when Objective 1 money first arrived, gross value added in the West Wales and the Valleys region was 62.1 per cent of the UK average. By 2019, it was 63.4 per cent GVA for Wales as a whole. By 2019, it was just 72.6 per cent of the UK total—[Interruption.] Oh, sorry, Jenny—yes, please.