Wales sets out scheme for funding post-Brexit

THE UK Government should add the £370m Wales gets in EU aid each year to the National Assembly’s block grant and scrap plans to put it into a general pot after Brexit, Carwyn Jones has said.

Today the Welsh Government has published a new White Paper which insists that Wales should not lose out financially after we leave the EU.

Since 2000 West Wales and the Valleys have received billions of pounds in EU aid because the wealth generated is less than 75% of the EU as a whole. In addition, the rest of Wales has also benefited from EU aid, making the nation a net beneficiary of EU funds, unlike the UK as a whole.

According to Mr Jones, Brexit is an opportunity to boost economic development, reduce bureaucracy and support our poorest communities – but, only if it is done properly.

Launching the Welsh Government’s latest Brexit paper – titled Regional Investment in Wales after Brexit – Mr Jones will warn against the UK Government using our exit from the EU as an opportunity to take money and funding decisions away from Wales.

The paper proposes a new and less bureaucratic way of supporting Welsh communities and driving economic development. It calls for every penny of the £370m that Wales currently receives from the EU each year to be replaced by the UK Government and added to the Welsh Government’s annual budget.

The paper rejects the idea of a Westminster-controlled UK Prosperity Fund – which would see Wales competing for funds with other parts of the UK – and calls for regional investment decisions to continue to be made in Wales. The proposals include: Simplifying the rules, administration and systems for regional investment funds;

developing plans for the regions of Wales led by partnerships involving local authorities, businesses and communities in those areas;

regional investment focused on places where it is needed and in line with the Welsh Government’s Economic Action Plan;

continuing the ability state aid to businesses.

the four national governments of the UK agreeing rules on regional support to avoid a race-to-the-bottom that could damage communities; and

creation of a Council of Economic Ministers from all four nations to ensure co-ordination of policy across the UK.

A UK Government spokeswoman said: “We have always said that we will negotiate our EU exit for every nation and region of the United Kingdom. Our goal is to secure a deal that works for all parts of the country.”

A senior Westminster source said: “This is the first we have heard of this White Paper. The Welsh Government hasn’t shared it with us, which is perhaps surprising given that they are constantly telling us we need to engage with them.” to provide