Prosperity fund could damage trust between UK nations, says think tank

The UK Government must ensure it does not damage the fragile ties between home nations through the administration of the Shared Prosperity Fund, a new report has said.

The controversial scheme will replace structural funding offeredbytheeuropeanunion, but will be administered centrally by Westminster and not the devolved administrations.

Leaders in the devolved nations have repeatedly raised concerns about the approach, callingforfundingtobeallocated closer to home.

In its report, the Institute for Government said the fund risks "further damaging trust between the UK and devolved governments".

It said: "After Brexit, it is legitimate for the UK Government to take a different approach to structural funding and to seek tostrengthentheunionthrough Uk-wideinvestmentinitiatives.

"However,thisshouldbedone in a way that respects the devolution settlements and takes into account the devolved governments' existing role in administeringstructuralfunds. Failure to do so risks further damagingtrustbetweentheuk and devolved governments at a time when inter-governmental relations are already strained. This could undermine the UK Government's key objective of binding the four nations of the UK closer together."

Akash Paun, a senior fellow at the institute and co-author of the report, said: "There is a clearopportunitytoputinplace something that is more flexible and less bureaucratic than the EU system, and that demonstratestovotersthevalueofukwide action.

"Butthegovernmentappears to be proceeding with its plans for the UK Shared Prosperity Fund with almost no meaningful engagement with the devolved governments or other stakeholders. Unless they change course and begin to work in partnership, ministers risk undermining their own objectives."

The think tank recommends clear criteria be put in place on howthefundingwillbeallocated across the country, which should be developed transparently, allowing for stakeholders to identify issues before the funding is launched next

year.