EU structural and investment funding, between 2014 and 2020, is worth €4.7bn to Wales, according to new data from CIPFA (Chartered Institute of Public Finance and Accountancy).
This is because Wales, between 2014 and 2020, will receive €3.1bn in EU structural funding, which then levers in an additional €1.6bn in funding from both public and private sources for projects and infrastructure, raising the total funds to €4.7bn.
In a submission to the Welsh Government, CIPFA argues that the current method of distributing funding to Wales from the UK is outdated and inappropriate. This is because the amount of funding Wales receives is determined by the Barnett Formula (linked to population size) and not driven by need.
Although it remains unclear whether EU funding will be replaced by UK government funding beyond 2020, CIPFA urges that the current funding mechanism is not used to provide future funding. Instead, the Institute calls for a new funding formula and agreement between the UK and all the devolved nations that will allocate funding towards need and outcomes.
Don Peebles, Head of Policy and Technical, commented:
“The money that Wales receives from the EU is by no means insignificant. And if funding levels were sustained and devolution arrangements modernised, then there could be real opportunity to more effectively use this funding.
“To achieve this, the government must directly face up to the limitations of the Barnett Formula. And look to create a new funding scheme that would allocate money based on need and to meet specific outcomes.”
In its submission, CIPFA also recommends the following:
- Agreement needs to be reached between the Welsh and UK governments on structural and investment funding quickly to mitigate any potential for delays in project planning and implementation due to funding concerns.
- The Welsh Government should press for resolution on whether there will be access to EU research funding. And CIPFA supports the view that research funding should continue to remain at arm’s length from the government.
- CIPFA supports the view that, post Brexit, the Welsh Government should have flexibility to develop its own specific agriculture funding practice based on its objectives for the sector.
- It would also be appropriate for a review of agriculture payments nationally, including the system of direct payments, to ensure transparency, fairness and efficiency in the payments system.
ENDS
For further information please contact Saskia Black on T: 020 7543 5830 or E:
saskia.black@cipfa.org.
Notes to editors
Contact the press office for a copy of CIPFA submission to the Welsh Government.