Give Welsh ministers more say in post EU aid, report says

The Welsh government should be given more involvement in a fund that has replaced European Union aid to Wales, a cross-party Senedd committee has said.

Despite having managed EU funds, Labour ministers were not given control of the £585m UK government pot.

There are concerns their absence has caused problems and the group, led by ex-Welsh Tory Senedd leader Paul Davies, has called on the UK government to work with Cardiff ministers more.

The UK government was asked to comment.

The Welsh government claimed Wales had been left with “less say over less money within a chaotic system that is failing to support jobs, projects and services in the places that need them”.

UK government ministers said in the past they have engaged with the Welsh government over the scheme, and Welsh First Minister Mark Drakeford said in 2022 there have been “intensive discussions” over the fund.

Much of Wales used to benefit from EU structural funds – worth an average of £375m a year – because of how relatively poor the country’s economy was.

The UK government’s replacement – the Shared Prosperity Fund – began in 2022 and is due to run until 2025 in its first round.

A total of £89m was allocated in the first year, with £153m in the second and £343m in the final year.

Unlike EU money, the UK government works directly with councils, with its ministers approving investment plans.

Targets for the cash include community improvements, such as in town centres, and supporting businesses.

The Senedd’s economy committee heard evidence that the Welsh government’s lack of involvement had caused a number of issues.

These included potential duplication, difficulties in delivering projects across a larger area than a single council, and a lack of accountability to the Senedd for funding spent in Wales.

The committee heard that organisations wanting to work across more than one area have had to submit multiple bids, often needing to meet different criteria.

“Stakeholders believe that the absence of any Welsh government-level coordination in the development or delivery of SPF has had a negative impact, and they should have a clear role in post-2025 funding,” it said.

The committee, which included two Conservative MSs alongside Labour and Plaid politicians, said the UK government should “consider how the Welsh government could aid the delivery and design” of the next round of SPF money, due to begin in 2025.

Senedd members also called for UK ministers to establish a “Wales-wide body to support regional co-ordination” working with the Welsh government, and a review on whether different elements should be delivered at a local, regional or all-Wales level.

Chairman of the committee, former Welsh Conservative Senedd leader Paul Davies, said: “Funding economic development in Wales is a shared responsibility, it is a priority for everyone.

“For development funding to work for the people of Wales, the UK and Welsh governments have to work together more effectively.”

He added: “Organisations also need to know that support is here to stay and people need certainty. We must get assurances from the UK government that funding will continue beyond 2025, when this current funding round is scheduled to end.”

The committee also heard concerns that some councils are prioritising their own projects for SPF.

Senedd members called for the UK government to look into the matter and ensure all organisations are given a chance to benefit from the funding.

The Welsh government said: “We welcome this report and share the Committee’s serious concerns about these funds.

“The UK government’s Levelling Up process has left Wales with less say over less money within a chaotic system that is failing to support the jobs, projects and services in the places that need them.

“The UK approach has also rolled back devolution by centralising all decisions in Whitehall.”