Target this aid at those most in need

IT’S a disgrace that Wales is not only being shortchanged by the UK Government over regional aid, but that precious funds will be diverted from our most disadvantaged communities into more prosperous areas.

We have been waiting years to find out how the UK Shared Prosperity Fund (SPF) would operate.

Westminster has been responsible for a series of delays that have done nothing to instil confidence in the new programme.

Now that the fund’s prospectus has finally been released, the longexpressed concerns of the Welsh Government have been shown to have validity.

However Westminster tries to spin the figures, the fact is Wales will have significantly less regional aid money than we would have had if we had remained in the EU.

A further injustice has entered the public domain with publication of the formula that will determine how SPF money is distributed around Wales.

When we were in the EU, of course, the bulk of our country qualified for the highest level of regional aid funding because GVA per head was less than 75% of the EU average.

The formula was transparent and easily verifiable.

But under the UK Government’s replacement formula, what are known as the Welsh Indices of Multiple Deprivation will account for just 30% of the SPF allocations.

A further 40% will be distributed on the basis of population and the remaining 30% in line with the formula used to allocate money from the earlier Community Renewal Fund. This formula is not favoured by the Welsh Government because not all of its elements relate to deprivation.

The Conservatives have taken the view it is better that all of Wales should have a piece of the cake rather than that resources should be allocated predominantly to the poorest communities.

It’s difficult not to draw the conclusion that such a preference is motivated by a desire that Conservative-voting areas should receive some of the money regardless of the fact that they are more prosperous.

Surely, if regional aid is to be meaningful, it should aim to prioritise those parts of the country that are in greatest need.

It’s wrong that this is not happening.

It’s also highly regrettable that the expertise built up by Welsh Government officials over more than two decades in managing EU funds will now be lost.