New UK Government funding for Wales sparks job loss fears

Andrew RT Davies chairs cross-party committee warning of job losses after UK Government's £547m Local Growth Fund for Wales falls short of previous EU funding schemes

Inside the new Senedd chamber with extra desks(Image: WalesOnline/Rob Browne)

WalesOnline readers have been engaged in heated discussions about Wales' funding, Brexit, and the prospect of independence. This follows a Senedd committee expressing concerns over a new UK Government funding scheme, which could potentially lead to job losses.

Opinions are divided on who is responsible and what the next steps should be.

The Local Growth Fund will allocate £547m to Wales as a substitute for EU development funding. The fund, set to be distributed over the next two years, succeeds the Shared Prosperity Fund (SPF).

However, a Senedd committee has pointed out that the new scheme's annual £182m will be less than the amounts received under both the SPF and the original EU structural funds.

In his introduction, the chair of the cross-party committee, Conservative MS Andrew RT Davies, highlighted numerous concerns and the committee's various conclusions.

These include disappointment at the "large reduction in funding received by Wales through the LGF compared to previous economic development schemes, as this means there will be less money to invest in, and support, our most vulnerable communities".

One stipulation of the fund is that 70% of the funding will be capital expenditure, with the remainder being revenue. This marks a departure from the SPF and has drawn criticism.

The Industrial Communities Alliance (ICA), representing councils in industrial areas, warned that this could have "tremendous consequences", including the potential loss of hundreds of jobs within councils.

Some of our readers have raised questions about the use of public funds. Littlenell comments: "Wow, imagine if we'd actually spent the previous amounts on value-added stuff and created our own money and economy. We can never have enough handouts, can we?"

Welshssinbin replies: "Too true, and it is likely our next Gov't will seek independence. How big a 'begging bowl' will be needed then? Bit late for serious concerns, it's what the Welsh people voted for in EU referendum a '"jump into unknown' and with Plaid likely to be in majority in next Govn, looks like we are going to take a bigger "jump into unknown", with independence the future."

Mindfulman says: "You got what you voted for with Brexit. Take a step back and look at who it really benefited: bankers who escaped regulation so they could make more money. America, China and Russia are all lining up to get a piece of the UK’s pie. The irony of RT Davies, who supported Brexit and had money from the EU for his farm. I can’t believe people are so naive and can’t see that the desire to have more money was behind Brexit, and it wasn’t for the communities of Ebbw Vale.

"It’s not a coincidence that Farage is targeting Wales as the most malleable people are in the most vulnerable places, who will fall for the promises again. It’s a fool who won’t admit they are being conned again to deny their shame. Show me any scientific evidence to prove Brexit has been beneficial for Wales. And of course, the leavers will say, it wasn’t done properly. Tell that to the businesses that are losing money. The master plan, break up the EU to isolate countries so they’re more vulnerable to attack, divide and conquer."

My_view writes: "If the Senedd had genuine serious concerns regarding funding, why did they continue with the monumental spend on expanding the Senedd? If Plaid gain control over the Senedd and seeks independence, it will crash the economy and housing market in Wales. The Welsh public will suffer, and only the wealthy will survive. Many who can will relocate."

Gwyddno adds: "Brexit has significantly harmed UK trade. Non-tariff barriers like paperwork and customs checks have reduced both goods and services exports to the EU. Studies show lower-than-expected goods trade volumes and a decline in the variety of exported goods, with some firms stopping EU exports due to complexity. Financial services have adapted by shifting activity abroad."

Using the comments section below, tell us if you think that Wales has suffered at the hands of Brexit.

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