Wales’ Economy Minister Vaughan Gething outlined how the Levelling Up scheme has failed the nation, as he spoke at a debate in the Senedd yesterday.
Speaking during the debate, Gething mentioned how Wales has been ‘short-changed’ by around £1.3 billion in EU structural and rural funding that has not been replaced, thanks to the ongoing impact of inflation. This comes alongside the fact that there has been a real-term reduction in Wales’ budget by up to £1.3 billion – again, due to inflation and ‘decisions taken by the UK Government.’
In the debate, the Economy Minister said:
“All of the UK Government’s schemes – whether it’s the Levelling Up Fund, the Shared Prosperity Fund, or the Towns Fund – have the same things in common: they are an incoherent mess with very little planning, consultation, or economic logic.
“Their implementation is chaotic leaving stakeholders confused or excluded entirely. At the same time, they put immense pressure on local government to spend money quickly despite UK Government delays and implausible deadlines.
“Plus, they take money and powers away from Wales putting them in the hands of UK Government Ministers in London, meaning Wales has less say over less money…
Touching on the fact that no money from the Levelling Up Fund will be allocated to Merthyr Tydfil, Flintshire, and Newport, despite committing resources and time to bids that were subsequently turned down by the UK Government, Gething added:
“UK Government delays in decision-making have driven up costs during a cost-of-living crisis with soaring inflation that has loaded extra pressure on our councils…
“… Wales already faces the toughest financial situation since the start of devolution.
“The legacy of Levelling Up is duplication, local piecemeal projects, and precious little economic impact. Through ineptitude and indifference, the UK Government has wasted the opportunity to deliver the meaningful change Wales and the rest of the UK so desperately needs to see.”
Before being lost, the EU funding was used by the Welsh Government to help reduce unemployment, and deliver new apprenticeships and training opportunities, whilst also investing in new businesses, infrastructure and projects. Universities were also supported with the delivery of new skills and growth programmes that operated in partnership with industry.
Now, the funding for these programmes is no longer available at the same scales, with research estimating that approximately 1,000 quality research and innovation jobs are being lost in Wales as a result.
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