UK Government's EU funding plans really are a 'deliberate assault' on Welsh devolution – Vaughan Gething
Wales' economy minister has warned that Wales will have "less say and fewer money" due to UK Government's intends to replace EU funding.
Vaughan Gething said said the united kingdom Government is "bypassing" Welsh Government to directly allocate funding for regional and local development via UK-wide funds. Mr Gething described that as a "clear assault on Welsh devolution" and said it shows the united kingdom Government is failing to meet repeated EU referendum promises that Wales “will 't be a penny worse off” away from EU.
In a Senedd debate on UK Government's Levelling Up Fund and also the future Shared Prosperity Fund, the minister said under UK Government plans “Wales is placed to possess less say, over less money, and denies Wales investment and also the jobs that will have been created throughout a time if we are still managing our path towards recovery in the Covid pandemic.”
The Welsh Government states that the pilot to the Shared Prosperity Fund, known as the Community Renewal Fund, may be worth lb220m over the UK. If the UK had remained in the EU, Wales might have had new EU Structural funding worth at least lb375m every year for seven years from January 2021 along with funding from the current EU programmes.
The Welsh Government states that lb800m continues to be set aside for Scotland, Wales and Northern Ireland over four years, with Wales prone to receive lb10m annually – less than lb450,000 per council in Wales
Mr Gething said: "These UK proposals represent a brand new era of aggressive centralisation. One which generate a very clear, message to Wales: 'you'll get what you're given.' This is an approach that provokes division according to an economic rationale that is hard to identify, let alone endorse. Worse still, this roller, throwback to pre-devolution economic policy is a deliberate assault on Welsh devolution. As things stand, Wales is set to possess less say, over less money.
"The Welsh Government explained our opposition to the UK Internal Market Act, arguing these powers must only be utilized in ways that has been agreed using the Welsh Government and also the Senedd.
"The proposed money is clearly made to systematically exclude the Welsh Government. As power grabs go, that one is about as subtle as an earthquake. The impact of this brutish attack on Welsh devolution is not even softened by having an offer of recent additional money for Wales.
"It remains our view that decisions about Wales should be drawn in Wales. This is actually the foundation of our position which has been based on the people of Wales consistently, including at the Senedd 2021 elections."
The Minister said the Welsh Government has concerns about the impact of UK Government intentions of key strategic interventions which depend on EU funding which are now coming to an end. These are critical to Wales' Covid recovery and, without successor EU funding from the UK Government, vital jobs and services are being put in danger.
He said that using a successor to EU funding to support the all-Wales Apprenticeships scheme means almost 5,300 fewer participants supported annually. Up to 50 % of the Wales Business Fund, led through the Development Bank for Wales, is supported by EU funds, that will mean hundreds fewer businesses receiving financial support to develop and make jobs.
Mr Gething said: "The Welsh Government has a strong renewed mandate for devolution and to govern with respect to the people of Wales. Bypassing the elected institutions of Wales isn't just an insult to folks of Wales, it will clearly lead to worse outcomes for Wales.
"When the UK Government is seriously interested in the near future prosperity of Wales, it has to provide Wales with a fair share of UK spending, and work with the Welsh Government and this Senedd not in a tokenistic way, but because a genuine partner in decision-making and delivery. It has to not attempt to take things to an outdated method of working when Westminster supposedly knew best. This will be counterproductive."
A UK Government spokesperson said: "The united kingdom Government includes a responsibility to people, businesses, and communities over the whole from the UK. It is therefore right we decide on strategic investment across the UK, with a strong role for local partners.
"The Welsh Government alone does not contain the monopoly of wisdom over where money can be best spent and that's why we intend to work with councils, businesses and others – as well as devolved administrations – to ensure that funding best supports their priorities and individuals across the UK. Decisions will still be produced in Wales alongside local communities right across the country.
"Throughout the pandemic there has been an unprecedented level of UK Government funding in Wales with thousands and thousands of jobs and businesses supported and lb8.6bn extra provided straight to the Welsh Government. Later on Wales will receive at least just as much in local growth funding as it received in EU Structural Funds."
