Commons Sense

House of Commons · Ministers' Questions

UK Shared Prosperity Fund

Wednesday 3 February 2021 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • Wayne David inquired about recent discussions between the Secretary of State and the First Minister of Wales regarding the UK shared prosperity fund.
  • Jonathan Edwards questioned if the British Government had conflated overrun spend from the previous convergence period with new funding, noting Wales previously received nearly 400 million annually.
  • Wayne David asked for the timetable for the introduction of the shared prosperity fund, given Britain's departure from the European Union and the end of structural funds.

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Questions & Answers

Context

The MP inquired about the status of conversations between government officials and the First Minister regarding the UK's Shared Prosperity Fund.

Question

What recent discussions has the Secretary of State had with the First Minister of Wales on the UK shared prosperity fund?

Answer from David Davies

My right hon. Friend the Secretary of State has regular discussions with the First Minister and Welsh Ministers on a range of issues, including the UK shared prosperity fund. The Government will continue to engage with the Welsh Government as we develop the fund's investment framework for publication.

Partly answered

Not addressed: The answer did not specify the most recent discussions or details thereof.

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Context

The MP questioned whether Wales would receive a similar level of investment from the Shared Prosperity Fund as it did previously, noting concerns over discrepancies in reported figures.

Question

From the figures that I have seen, the British Government may have conflated overrun spend from the previous convergence period for this financial year with the actual allocation of new money. Under the previous scheme, Wales would receive nearly £400 million per annum. Is not the reality that the Minister is unable to guarantee that the shared prosperity fund, when fully operational, will match that level of investment?

Answer from David Davies

The figures will show that on average Wales is receiving £375 million a year. What the hon. Gentleman may be referring to is the fact that over a number of years to follow there will still be some money coming to Wales from the European Union. Of course, it is absolutely right that that money should be counted towards the £375 million total, and the Government will guarantee to ensure that the amount of money to be spent in Wales in future will be exactly the same, or higher, than the amount that was spent previously.

Answered
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Context

The MP asked about the timeline for introducing the Shared Prosperity Fund after the end of EU structural funds, noting the initial announcement in 2017.

Question

Britain has left the European Union. The transition period has come to an end. There is no new money coming from the structural funds. Given that the Government announced the shared prosperity fund back in 2017, can the Minister at least tell us the timetable for the introduction of the new fund?

Answer from David Davies

We have already made it very clear and demonstrated that the amount of money that is going to be spent in Wales when the SPF comes in will be identical to or higher than the amount of money that was spent in Wales that came from the European Union. There has been absolutely no secrecy about that. The way in which the fund will be managed is subject to discussions at this very moment, and I would expect full details to be publicised over the next few months.

Partly answered

Not addressed: The answer did not provide a specific timeline or schedule for the introduction of the Shared Prosperity Fund.

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Q4 Ruth Jones Lab Newport West and Islwyn
Context

The MP raised concerns about the level of autonomy given to the Welsh Government regarding the Shared Prosperity Fund, especially after recent criticisms of EU funding use.

Question

Many of my constituents are very sorry to see the hundreds of millions of pounds of EU funding that Wales received in recent years come to an end. Our departure from the EU made this inevitable, and of course I accept this, but they also believe that the Welsh Government should have full autonomy over their part of the shared prosperity fund, and I agree, so can the Minister provide some evidence that this working together is taking place?

Answer from David Davies

I am sure that the hon. Lady's constituents will be delighted to know that hundreds of millions of pounds will continue to be spent in Wales, and continue to be spent where it is most needed. I am sure that her constituents would be rather disappointed that we already know from the Audit Wales report that some of the money that has gone into, for example, pillar 2 agricultural funding has not been well spent. I urge her to recommend to her constituents that they look at the dossier presented by my hon. Friend the Member for Montgomeryshire (Craig Williams), which demonstrates that millions of pounds of European Union money that was handled by the Welsh Government was misspent. When that money becomes British taxpayers' money, all partners in British Government, including the Welsh Government and local authorities with growth deals, will want to make sure that it is properly spent, and I am sure that her constituents will agree.

Not addressed: The answer shifted focus to past mismanagement of EU funds rather than addressing autonomy over the Shared Prosperity Fund.

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