← Back to Westminster Hall Debates
Community Renewal Fund and Levelling Up Fund in Wales — [Christina Rees in the Chair]
08 June 2021
Lead MP
Ruth Jones
Newport West and Islwyn
Lab
Responding Minister
Luke Hall
Tags
EconomyTaxationNorthern IrelandWales
Word Count: 13957
Other Contributors: 16
At a Glance
Ruth Jones raised concerns about community renewal fund and levelling up fund in wales — [christina rees in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The lead MP asks the Minister to provide a reasoned explanation of what will happen and to ensure that these funds support greater, more equal cooperation between Whitehall and the devolved governments in Cardiff, Belfast, and Edinburgh.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The levelling up fund and the community renewal fund fail to be transparent, fair, and balanced. They pit nations such as Wales against other regions within the UK without considering local priorities. The Welsh Government has been cut out of the bidding process, leading to a lack of communication and unclear criteria for successful bids. The timeline is too short, with councils having to submit shovel-ready projects rather than the most important ones. There are discrepancies in the accounts given by different government ministers regarding the involvement of the Wales Office.
Alun Cairns
Con
Vale of Glamorgan
Welcomes the levelling-up fund and its alignment with Brexit. Highlights that Wales received £4 billion in European aid over almost 20 years but remains the poorest part of the UK, indicating a need for a fresh approach. Expresses disappointment at opposition to funds from Whitehall rather than Europe. Mentions Barry's deprived communities and notes that the marina project complements other developments.
Beth Winter
Lab
Cynon Valley
Wales received significant EU funding, which is now replaced by the Community Renewal Fund and Levelling Up Fund providing far less. Cynon Valley, a deprived area with high child poverty rates, is excluded from these funds despite needing support. The prioritisation methodology lacks consideration of deprivation, leading to disparities in funding distribution across Wales. Beth Winter also raised concerns about the competitive bidding process and fear of political motives behind fund allocation.
Chris Elmore
Lab
Bridgend
The MP welcomed any funding that brings investment to his Ogmore constituency, which he described as one of the most economically deprived parts of Wales and the UK. He highlighted the need for physical regeneration in towns across the valleys but criticised the current bidding process due to its complexity and lack of clarity. He called for a clearer devolution settlement and better communication between local authorities and government officials.
Chris Ruane
Lab
Vale of Clwyd
The funding allocated to Wales under both schemes is insufficient and fails to address the unique challenges faced by Welsh communities, particularly in rural areas like the Vale of Clwyd. I urge the government to reconsider its approach and allocate more resources.
Craig Williams
Lab
Montgomeryshire
Welcomed the debate and congratulated Ruth Jones on securing it. Touched lightly on the establishment of WEFO, noting that Wales qualified three times for highest EU structural funds, faster than eastern European areas recovering from Communist rule. Emphasised that Wales wants to try something different with UK Government funding, focusing on outcomes rather than governance issues. Supported direct funding into projects in constituencies and welcomed new funding pots. Criticised the Welsh Government for not collaborating when UK Government invests in reserved areas.
Monmouth
I am concerned about the disparity in funding between Wales and England under both the Community Renewal Fund and the Levelling Up Fund, highlighting that Monmouth has received less than £1 million while neighbouring areas have received significantly more.
Derek Thomas
Con
St Ives
The allocation of funds must take into account the specific needs of each community, and I call for a fairer distribution that recognises the disparities in development across Wales. This is crucial for levelling up less prosperous areas.
Geraint Davies
Lab
Cynon Valley
The lack of investment in Cynon Valley is exacerbating social and economic inequalities. I request that the government provides more detailed information on how funding decisions are made to ensure transparency and fairness.
Jamie Wallis
Con
Bridgend
Welcomes the levelling-up fund and community renewal fund as opportunities for direct investment in Welsh communities. Highlights the importance of collaboration between UK and Welsh Governments, criticises Welsh Government's handling of freeports policy. Emphasises MPs' role in supporting local authority bids for these funds.
Robin Millar
Con
Aberconwy
Welcomed the UK Government's vision for investment in Wales and highlighted the importance of establishing facts. Emphasised that sovereignty lies with the UK Government, rejecting devolution beyond Cardiff Bay to local authorities. Noted that the Welsh Government handled 53% of EU funds in 2020 compared to less than 10% by local councils, advocating for greater fiscal autonomy and flexibility for councils.
Simon Baynes
Con
Clwyd South
Supports the principle of levelling up and decentralising power to local partners. Welcomes £220 million funding for Wales through the UK community renewal fund, aiming to support communities most in need and pilot programmes. Highlights a bid focusing on projects along the Dee Valley, including regeneration of Trevor Basin and travel connectivity improvements.
Stephen Crabb
Con
Preseli Pembrokeshire
Welcomed the new funds aimed at achieving a fairer, more balanced economy in Wales. Emphasized that Wales remains one of the poorest parts of the UK and welcomed the vision behind these funds. Stressed the complementarity between UK Government and Welsh Government initiatives without competing with each other.
Stephen Kinnock
Lab
Aberavon Maesteg
Mr Kinnock expressed disappointment in the Government's response to the Community Renewal Fund, citing five central concerns: the use of spin and smoke and mirrors to create the impression of extra resources without new money; nakedly political purposes directing funds away from communities with the greatest need; a bidding process that hinders effective delivery by wasting local authority time and resources; a centralised approach betraying devolution principles; and shambolic delivery timescales demanding unrealistic deadlines.
Virginia Crosbie
Con
Ynys Môn
Welcomed the opportunity for Ynys Môn to bid for the community renewal and levelling up funds, highlighting local engagement and potential projects such as arts centres and charities. Mentioned £145,000 capacity funding provided by UK Government to Isle Of Anglesey County Council.
Wayne David
Lab
Caerphilly
Raises concerns about Caerphilly county borough not being included on the Government's priority list for funding. Points out that despite high travel-to-work rates, parts of the borough are far from prosperous and need continued support. Asks the Minister to commit to working with the Welsh Government on criteria for shared prosperity fund allocation.
Wendy Chamberlain
Lib Dem
North East Fife
Raises concerns about insufficient time for local authorities to process applications due to the initial deadline. Points out that Wales is guaranteed only 5% of the community renewal fund, equating to a loss of over £300 million previously funded by EU structural funds. Criticises lack of transparency and meaningful engagement with the Welsh Government in forming the funds.
Government Response
Luke Hall
Government Response
It is a pleasure to serve under your chairmanship, Ms Rees. I thank the hon. Member for Newport West (Ruth Jones) for securing this debate. The Government is committed to unlocking economic prosperity across all regions of the UK through levelling up, addressing long-standing economic inequalities and delivering opportunities regardless of where people are born or grow up. Since 2016, we have engaged with devolved Administrations and local authorities in Wales and other parts of the country during the development of the funds. We held four events in Cardiff and one in St Asaph in January 2019, which Welsh Government officials attended to discuss reducing bureaucracy and collaborative projects across boundaries. A £4.8 billion levelling-up fund will be invested, with at least £800 million allocated for Scotland, Wales, and Northern Ireland over 2021-22 through to 2024-25, and Wales will receive more under this design than if the money were Barnettised. The community renewal fund and the levelling-up fund allow cross-border bids, which help maximise strategic benefits for the UK Government. Local authorities in Wales are well prepared for the process: 13 of the 22 local authorities have told us that they are submitting bids to the levelling-up fund by the deadline later this month. Every single local authority in Wales has opened calls for projects for the community renewal fund, which is a higher percentage than any other nation in the UK. We will be setting out details on funding dates later this year. MPs can write to their local authorities or me supporting preferred bids under the levelling-up fund and support other bids through their local authorities, making clear which bid is approved. Once a bid is successful, it will not be eligible for a later round of funding in that constituency. We want to ensure places receive feedback if they do not pass the first stage so they can submit a second bid. The Wales Office seeks advice from territorial offices and devolved Administrations at the shortlisting stage where appropriate. We heard representation about deprivation not being included but are conscious of making sure this is positive investment delivered into Wales.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.