The Local Government Association has today called on the
Government to provide urgent clarity over how it will replace
current European Union Structural Funds once the UK leaves the
EU.
The LGA said councils are becoming increasingly concerned about
the lack of clarity over how the Government plans to address the
potential €10.5 billion (£8.4 billion) UK-wide funding gap for
local communities that would immediately open up from the
point we officially exited the EU.
In its manifesto, the Government pledged to create a UK Shared
Prosperity Fund to replace the money local areas currently
receive from the European Union.
Giving evidence to the Communities and Local Government Select
Committee today, Cllr Kevin Bentley, Chairman of the LGA’s Brexit
Task and Finish Group, warned about a lack of progress being made
on how the Government plans to replace this vital EU funding.
This funding has been used by local areas to create jobs, support
small and medium enterprises, deliver skills training, invest in
critical transport and digital infrastructure and boost inclusive
growth across the country.
The LGA, which represents more than 370 councils in England and
Wales, believes that Brexit offers an opportunity to develop a
domestic successor to these arrangements that is fully
place-based. This will enable local areas to set their own
priorities, and enhance their capacities to adapt to future
challenges that will need to be addressed after Brexit.
To support our case for local communities to have a greater
responsibility in deciding how this funding is spent we have
produced a report ‘Beyond Brexit’, [https://www.local.gov.uk/topics/european-and-international/beyond-brexit-future-funding-currently-sourced-eu],
which presents an in-depth analysis of a number of options which
aim to inform the design and delivery of the UKSPF.
Giving evidence to the CLG Select Committee this morning, Cllr
Bentley, said:
“More clarity is urgently needed. The very nature of local
government means we are very close to the residents we serve so
this is about people, their jobs, their family and it is hugely
important.
“We are certainly talking to the Government about this funding
and the critical timeline on the funding.”
Speaking after the session, Cllr Bentley, said:
“Negotiating our exit from the European Union is clearly a huge
task but the clock is ticking to ensure Brexit does not leave
local areas facing huge funding gaps as a result of lost regional
aid funding.
“We want to urgently work with the Government to help develop a
fully-funded and locally-driven successor scheme with local
government in areas of all types. With national funding for
regeneration increasingly being depleted, all local areas have
become increasingly reliant on EU money and local areas are
desperate to get on with creating jobs, building infrastructure
and boosting growth.”
