The delivery of the 海角视频鈥檚 Government levelling up strategy has serious failings says a cross-party committee of MPs who highlight evidence that the replacement to EU structuring funding has left Wales and other nations significantly worse off.
A report by the Levelling Up, Housing and Communities Select Committee, says the 海角视频 Government needs to communicate more effectively with the devolved administrations over its levelling up funding programmes, including the 海角视频 Shared Prosperity Fund (海角视频SPF) and the Levelling Up Fund.
It also identifies weaknesses in the funding, delivery, allocation and funding methods, as well the competitive bidding processes involved in levelling up funds. The strategy is being driven by the Department for Levelling Up, Housing and Communities (DLUHC) under cabinet minister Michael Gove, and is aimed at reducing geographic, economic, social and health inequalities - many areas that though are devolved.
The select committee concludes:鈥淭he method of delivering funding, the allocation process, and the extent to which different funds have been compatible with the needs of communities, in the short and long-term, is creating several obstacles for the policy鈥檚 success.鈥
In its manifesto pledge in 2019 the 海角视频 Government committed to replace and 鈥渁t a minimum match the size鈥 former EU funding in each nation of the 海角视频. Last year the Welsh Government said the replacement to EU regional and social funding support will leave Wales 拢1.1bn worse off from 2020-25 than if the 海角视频 had remained in the EU. It calculated that EU funding would have been worth 拢1.4bn to Wales from January 2021 to March 2025.
The Cardiff Bay administration said the 海角视频 Government has so far only committed 拢585m in 海角视频SPF to Wales up to 2025. This it said includes 拢101m which is being top sliced to support the 海角视频 Government鈥檚 adult numeracy programme Multiply, which it has criticised for cutting across existing schemes in Wales where education and adult learning is a devolved matter. With funding from the pilot to the 海角视频SPF, the Community Renewal Fund, it identified a 拢772m shortfall - although since the analysis more projects in Wales have secured funding from the Levelling Up Fund.
It arrived at its 拢1.1bn deficit figure by also including a claimed 拢243m shortfall in EU farming funding. The EU allowed for funding to be carried over to the next seven year funding period. The 海角视频 Government said that parity will be achieved over the long-term as EU funding is tapered off.
While the committee failed to arrive at a definitive position on the shortfall disagreement, citing the challenge of the 海角视频 and devolved government providing different data, it says: 鈥淎ll the evidence we have received has said that the 海角视频SPF is not a sufficient replacement. This view indicates there has been a serious deficit of collaboration and communication between the DLUHC and recipients on this issue, resulting in the lack of a shared understanding of the methodology the government has used to calculate 海角视频SPF.鈥
It adds: "There is an overwhelming sense that the DLUHC is unwilling to collaborate and adhere to devolved agreements in which the governments of Northern Ireland, Scotland and Wales operate.鈥
With 海角视频SPF being allocated for three years compared to seven for the EU structural funding, the committee鈥檚 report said the shorter time frame 鈥渉as caused difficulties for many organisations who require a long-term in which to achieve the interventions for which they are seeking funding.鈥
It adds: 鈥淚f the government does not find a way to provide funding over a longer period many organisations will find their programmes to be unviable, and a lot of important work will go undone. Therefore, we call on the Government to commit to a long-term funding programme.
A Welsh Government spokesman said: 鈥淲e welcome this report and share the committee鈥檚 serious concerns. The 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 海角视频 approach has also rolled back devolution by centralising all decisions in Whitehall.
鈥淲ales is 拢1.1bn worse off as a result of the 海角视频 Government鈥檚 failure to meet its pledge to replace previous EU funds in full. The Welsh Government previously used these funds to help tackle unemployment, deliver apprenticeships, invest in new industries and build new schools among other investments.
"Universities were also supported in a system that provided certainty for those pioneering the creation of skilled, quality employment. Under the 海角视频 levelling up regime, more than 1,000 high quality jobs in research and innovation are being lost in Wales as universities cannot access these funds.鈥
The select committee reports also highlights as an area of 鈥渟erious concern鈥 the dearth of data available with the DLUCHC conceding it doesn鈥檛 have 鈥渟ufficient data鈥 in relation to Whitehall department expenditure on the full range of levelling up funds or combined authority or expenditure.
The committee, which is made up of six Tory MPs and five Labour, say: 鈥淲e cannot understand how the DLUHC can make significant policy decisions in relation to priority areas, funding allocations or the measurement of the success or failure of the levelling up policy in achieving its objectives, if there is not adequate data to support these tasks.鈥
Business Editor Sion gives his verdict on levelling up
A damning report into the 海角视频 Government鈥檚 levelling up strategy has been delivered by a cross-party committee of MPs.
It was a constant mantra of former Prime Minister Boris Johnson, and while the goals underpinning levelling up are laudable in seeking to address long standing geographical inequalities across the 海角视频, it now urgently needs a reset. If it is to survive, and levelling-up is a term that you hardly hear coming out of the mouth of the current incumbent of No 10 Rishi Sunak, it needs to properly engage with the devolved administrations.
The select committee, for which Tory MPs make up the biggest political grouping, has taken to task the Department for Levelling Up, Housing and Communities (DLUHC), under Michael Gove, for its poor delivery of the strategy, including a lack of data and funding provided being too short-term.
The MPs though, and they should have given the evidence and resources at their disposal, weren鈥檛 able to conclude whether the manifesto promise of the 海角视频 Government of providing at least a pound to pound match for the loss of EU funding to Wales, has been achieved.
However, they tellingly put weight on the evidence provided by the devolved nations which points to a significant loss of funding - which in the case of Wales has been put at 拢1.1bn. Relations between the two governments are not in the best place and the 海角视频 Government鈥檚 ambivalence, and is some quarters outright hostility towards devolution, is the main root of the problem - although Welsh Government ministers need to play smarter and engage more.
While not his decision, former Welsh Secretary Alun Cairns seemed hell bent on ensuring that the successor to EU funds bypassed the Welsh Government as much as possible. While Brexit poster boy Lord Frost recently admitted that the Internal Markets Bill was designed to row back devolution.
Levelling up projects to date have almost all fallen into the local pet project category. With input for the Welsh Government, working within a regional framework supported by the city regions, a more strategic approach should be taken. It requires a higher level assessment so that you don鈥檛 get localised competition, say resulting in funding for an innovation hub in one local authority and another just over the border.
Being in receipt of EU structuring was hardly a badge of honour and highlighted that economically Wales had some of the poorest communities in the EU - even after the admittance of eastern Europe states.
However, the performance of levelling up is currently falling far short of what was promised to the electorate.
Labour MP and chair of the Levelling Up, Housing and Communities (LUHC) Committee, Clive Betts, said: 鈥淭here is cross-party consensus in tackling the regional and local inequalities that are holding back communities across the country. But the complexity of the levelling up challenges mean they cannot be remedied by the government鈥檚 current approach of one-off short-term initiatives.
鈥淭he government should heed the lessons of projects such as German reunification which were accompanied by long-term funding and internationally recognised for the benefits delivered in terms of long-term, substantive growth. The levelling up policy requires a long-term and substantive strategy and funding approach, elements this policy currently lacks. Without this shift, Levelling Up risks joining the short-term Government growth initiatives which came before it.
鈥淭he DLUHC is primarily responsible for delivering levelling up, but is currently failing to drive forward the policy across government. It鈥檚 concerning that DLUHC does not even appear to know which pots of money across government contribute towards levelling up. The lack of strategic oversight from DLUHC of how levelling up is delivered across Whitehall raises doubts about whether the policy can be successfully delivered.鈥
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