More than £730 million in vital EU cash which could help
local communities bounce back from COVID-19 risks going unspent
and being sent back to Brussels if the funding is not allocated
by the Government before the end of the year, councils warn
today.
The Local Government Association said 24 per cent of
England’s allocation of the European Social Fund remains
unspent.
It is calling on the Government to urgently work with
councils and combined authorities to ensure the remaining money –
which amounts to more than £730 million – is allocated quickly to
support the national recovery from the pandemic.
The fund - which the UK is continuing to participate in
until the end of the programme - is used for supporting
employment, skills and training.
With unemployment expected to rise and local businesses
likely to struggle to get back on their feet, the LGA says
investment in employment and skills will be more important than
ever in the coming months. It is vital that the remaining funding
is used to respond quickly to support people and places where it
is most needed.
Councils are also concerned about the ongoing lack of
detail around the Government’s proposed UK Shared Prosperity
Fund, which will replace EU funding.
The LGA said councils and combined authorities want to work
with the Government to co-design the UKSPF, based around local
need and the alignment towards a single pot of growth
funding.
It is calling on the Government to provide the details and
consultation of the UKSPF, to help give communities the long-term
funding certainty they need to rebuild and renew their economies
following this crisis.
Cllr Kevin Bentley, Chairman of the LGA’s EU Exit
Taskforce, said:
“The Government needs to make sure the remainder of this
fund reaches the local communities that need it desperately
following the devastating economic impact of COVID-19.
“Councils and combined authorities are ready to work with
government to make sure that local residents and economies can
reap the benefits of this funding.
“As the country looks towards how we bounce back from
COVID-19, this funding is more important than ever.
“This is vital money which as it stands risks going unspent
and returned to Brussels, when instead it can and should be
invested in jobs, skills and training critical to the national
recovery.”
NOTES TO EDITORS
-
The European Commission has offered greater flexibilities
on how the ESIF programme can be spent through the Coronavirus
Response Investment Initiative Plus. The CRII+ is a time
limited offer of flexibilities for any programme that directly
tackles COVID-19.
-
Calculation of unspent money based on the ESF Performance
Report from the
Growth Programme Board that 75.91% has been committed
which is valued at £2.304 billion. The remaining 24.09% amounts
to £731,173,231.5. Over £500 million is in an appraisal process
which can take over a year to complete.
