Scheme To Replace EU Cash For Poor Areas Unveiled

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Scheme To Replace EU Cash For Poor Areas Unveiled

The UK government has unveiled the first areas to benefit from a forthcoming fund to replace EU grants to help poorer regions.

The fund will be used to invest in skills, education, local businesses and employment.

But it has previously been criticised for not giving the devolved governments a say in how it is spent.

A new Shared Prosperity Fund (SPF), which is due to replace EU structural funds to help poorer area, is expected to roll out from April 2022.

The government has announced 477 projects across the UK that will get cash under a pilot for the new scheme, ahead of its launch.

Under this pilot, English regions will receive £123m, Wales will receive £46m, Scotland £18m and Northern Ireland £12m.

Wales will get the most funding per head – similar to the EU scheme, under which it was also proportionally the largest recipient of aid.

The South West will receive the largest proportion in England.

The fund will be spent on various projects – bid for by local authorities – to spend on skills, education, local businesses and employment.

The fund allows the UK government to directly invest in areas – like education and economic development – that would otherwise be controlled by politicians in Cardiff, Edinburgh and Belfast.

Under the UK Internal Market Act – a new law passed last year – the UK government gained new powers to spend in areas like infrastructure, education and economic development that would otherwise be devolved.

In Scotland, projects include £274,742 to create a “World Class Visitor Attraction” in Dumfries and £480k to create a “Net Zero” Innovation District in Glasgow.

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