'Serious concerns' in Wales over UK replacement for EU funding

SERIOUS concerns have been raised about a new funding scheme by the UK Government which politicians warn could lead to job losses and cuts to services.

- By RUTH MOSALSKI

The Local Growth Fund will see £547m allocated to Wales as a replacement for EU development funding. The money, over the next two years, is the successor to the Shared Prosperity Fund (SPF).

However, a Senedd committee has said the new scheme's £182m a year will be less than the money received under both the SPF and the original EU structural funds.

The cross party committee's chair, Conservative MS Andrew RT Davies, said there were numerous concerns and the committee had published a number of conclusions.

They include that it is "disappointed with the large reduction in funding received by Wales though the LGF compared to the previous economic development schemes as this means there will be less money to invest in, and support, our most vulnerable communities"

One of the fund's requirements is that 70% of funding will be capital spend, with the rest revenue. That is a change from the SPF and has led to criticism.

The Industrial Communities Alliance (ICA) which represents councils in industrial areas, said it could have "tremendous consequences", including the potential for hundreds of job losses in councils.

Professor Kevin Morgan, of Cardiff University's Wales Governance Centre, echoed that, telling the committee: "I fear, with the reversal of the 70:30 split, these people are already being served with redundancy notices"

Swansea council leader Rob Stewart said there had been "greater flexibility" in England than in Wales and the Welsh Government's own economy minister admitted they would have "preferred to have seen something more akin to the previous SPF".