UK minister seeks talks on scheme replacing EU aid fund

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A465 near Ebbw Vale, part funded by EU structural fundsImage source, Getty Images
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The A465 near Ebbw Vale was part funded by EU financial aid

A UK minister says he has been seeking a meeting with the Welsh economy minister about a new fund to replace EU aid for Wales' poorest areas.

Minister for Levelling Up Neil O'Brien said he wanted to talk to Vaughan Gething but Welsh ministers were still "mulling" the offer of a meeting.

Welsh ministers have criticised the UK government for not involving them in plans for the Shared Prosperity Fund.

Welsh ministers said agreement can be reached based on joint decision making.

Ministers in Cardiff have also complained that the fund leaves Wales worse off than under the original EU scheme.

The details of how the new fund will work have yet to be announced.

Mr O'Brien told a committee of Welsh MPs on Wednesday: "I am keen to talk about it with my equivalent, Vaughan Gething, in Wales but at the moment I think they are still deciding if they want to engage in that way."

Addressing the Welsh Affairs Committee, he said he wanted the Welsh government to be involved in shaping the scheme but "they are mulling how they want to play this".

"We are in the process of talking to Welsh local authorities and other stakeholders," he said. "I am keen to meet with and work with the Welsh government."

'Money in local leaders' hands'

Mr O'Brien said officials of the two governments were meeting regularly and Levelling Up Secretary Michael Gove had met the first ministers of Wales and Scotland before Christmas.

"We are very open to the Welsh government shaping all the different dimensions of this fund," he said.

But he also added that UK ministers want local authorities to decide how to spend the money.

"The one thing we would be keen on, and I think this is probably the thing that is making them wonder about whether to meet, is that we really want to allocate the funding fully out to local regions within Wales."

"We'd like to put the money in the hands of local leaders."

How has the Welsh government responded?

A Welsh government spokesperson said: "Welsh ministers have been clear in meetings and in public that an agreement can be reached on the basis of joint decision making.

"A credible agreement that works for jobs and communities in Wales must go beyond consultation and include a joint approach to the design and delivery of programmes and projects.

"Officials from both governments are in ongoing dialogue on these issues and Welsh ministers look forward to meeting with UK ministers to discuss their response to our offer of a way forward."