The Scottish Affairs Committee has called for a consultation to
commence by the Autumn on the new UK Shared Prosperity Fund
(UKSPF). The UKSPF is due to start in 2022 to replace European
Structural and Investment Funds following the UK’s exit from the
European Union.
While the Committee welcomed initial commitments by the UK
Government that there will be a consultation on the design of the
scheme, this is yet to come to fruition. It is vital that bodies
across Scotland – including local authorities – are consulted
given the focus of the UKSPF on local businesses, communities and
investing in skills and employment.
Further, it is unclear how much funding Scotland will receive
through UKSPF. While the UK Government has given its assurances
that Scotland’s allocation will be the same - or greater – than
EU funds, the Committee has called for clarity on how much
funding this equates to per year, for the first five years of the
scheme.
EU rural development funding through the European Agricultural
Fund for Rural Development (EAFRD) and European Maritime
Fisheries Fund (EMFF), is due to end later this year, and there
is a risk that expertise and capacity could be lost due to the
ongoing level of uncertainty. Clarity on the replacement
initiatives must be provided.
European Structural and Investment Funds benefited universities
across Scotland, with the Committee hearing evidence that EU
research grants were 14% higher than those received by
universities in the rest of the UK. Its funding allocations to
universities in the Highlands ensured more people stayed in the
region, boosting its skills and employment opportunities. The
Committee has therefore called for the UK Government to
prioritise academic research funding when allocating UKSPF
resources, and that it should collaborate with the Scottish
Government to ensure structural funding brings significant
regional benefits.
Scottish Affairs Committee Chair, MP, said:
“It is no secret that Scotland benefited significantly
from EU funds and led to many communities and universities to
prosper. While we have been assured that UK replacement funds
will match or exceed EU funds, we are yet to see any evidence of
this. Nor have we been able to access information on the design
of the UK Shared Prosperity Fund or how locations will be
selected to receive grants.
“It is bewildering that there seems to have been no
formal consultation and time is fast running out before the UK
Shared Prosperity Fund begins next year. Our Committee urges the
UK Government to consult urgently and to provide clarity on
funding for what could be a vital lifeline for businesses,
universities and communities across Scotland.”
Recommendations
The Committee’s recommendations are:
- The UK Government must launch a formal, public consultation
on its proposals for the UKSPF by autumn 2021
- We urge the UK and Scottish Governments to work
constructively together in the design and delivery of the UKSPF.
- The UK Government's multi-year funding profile should clarify
how much funding will be available each year for the UK and for
Scotland for at least the first five years of the UKSPF.
- The UK Government must clarify how and when EU rural
development funding, including the European Agricultural Fund for
Rural Development 5 (EAFRD) and European Maritime Fisheries Fund
(EMFF), will be replaced.
- In March 2022, a year after it began, the UK Government
should evaluate the Community Renewal Fund and publish its
findings on how well the fund has operated. This evaluation
should highlight implications for the design and delivery of the
UKSPF.
- The UK Government should ensure that its methodology and
criteria for allocating UKSPF funds are clear and transparent.
- In its response to this Report, the UK Government should
clarify how much funding has been given to local authorities in
Scotland to help them build capacity in developing bids for the
UKSPF.
- The UK Government should prioritise academic research funding
when allocating resources under the UKSPF. The UK Government
should collaborate with the Scottish Government, to ensure that
regions where structural funding for universities has brought
significant regional benefits, are not disproportionally
disadvantaged by the transition to the UKSPF.
- We recommend that the UK Government evaluates the progress of
the UKSPF after one year of operation and publishes a report, to
ensure that funding is delivering the levelling up agenda by
being allocated to the areas and sectors of greatest need.
