Billions of pounds needed in regional aid to replace EU funding, council leaders say

COUNCILS WILL need billions of pounds in regional aid to replace EU regeneration funding after Brexit, local authority leaders have said, as they warn alternative proposals to create a UK Shared Prosperity Fund are lacking in detail.

UK regions were allocated a total of £8.4bn through the latest round of European funding allocations, with many regarding the cash injection as a crucial means of supporting enterprise and boosting infrastructure.

A report by the Local Government Association argues the successor scheme must be of at least equivalent size but should avoid the same problems with bureaucracy and delays. It also calls for the new funding body to be locally driven.

Councillor Kevin Bentley, of the LGA, said: “Since the referendum, one of the biggest concerns for councils has been the future of vital EU regeneration funding. Councils have used EU funds to help new businesses start up, create thousands of new jobs, roll out broadband and build new roads and bridges.

“Securing a government commitment around this vital regeneration funding has been an important step. To further its devolution commitments, we want to work with the Government to help develop a fully-funded and locally-driven successor scheme with local government in areas of all types.

“Funding must be easier to access and local areas need full control over how it is spent.”

The Yorkshire region is set to receive just under £340m in European Regional Development funding over the course of the 2014-2020 EU budget. As of March, £132m had been released.