Councils worry about size of new UK economic aid funds

Welsh council leaders have raised concerns about the size and deadlines of new UK government economic aid funds.

They were discussing the Levelling Up and Community Renewal schemes with MPs.

Swansea's Rob Stewart said there was around £30m-£40m for Wales this year, and his authority was spending four times that on upgrading schools.

Rosemarie Harris, from Powys, said the deadlines were so tight they risked "reputational damage" to councils.

Wales Office minister David TC Davies said he had had conversations with council leaders "of different political parties" and they had told him they were "delighted to be able to have a direct relationship with the UK government".

Four council leaders were addressing the Welsh Affairs Committee at Westminster.

The Levelling Up Fund is a new £4.8bn pot of money to finance infrastructure projects in deprived areas of the UK.

That fund has 17 of Wales' 22 local authorities in its priority level 1 for receiving money.

UK ministers have said all areas can apply with cash going to those most in need.

The separate Community Renewal Fund has identified fourteen priority places in Wales to compete for a £220m UK-wide in this financial year.

It has been described as a pilot for developing the successor scheme to the EU aid programme that awarded £375m a year to some of the poorest parts of Wales.

Labour Swansea council leader Mr Stewart said the total sums available from the schemes are "circa £30m to £40m across Wales".

"I'm spending more than that on upgrading my schools in Swansea, actually I'm spending four times that amount on my capital programme in Swansea, so quantum is really important here," he told the committee.

"We want to work with a process that delivers those funds to Wales, and we want to play a major part in being able to articulate the needs of our communities and put those proposals forward," he said.

"But we don't want to be competitively arguing amongst ourselves over small amounts of money.

"If it is truly levelling up and it is truly community renewal then the level of the funds has to be sufficient to actually achieve that aim."

The council leaders warned MPs that they were having to put funding bids in by 18 June and the money had to be spent by 31 March 2022.

That, they said, was narrowing down the type of projects they could support.

Ms Harris, an independent councillor who leads Powys, said that if councils were not able to back the projects that they "would have ordinarily prioritised there is a risk of reputational damage to us as local authorities, because we're the ones on the front line".

"I think that's something of a risk for us," she said.

UK government regional growth minister Luke Hall told the committee that "a minimum of 5% of the bids" would be allocated to Wales.

"It's a floor rather than a ceiling" he said, adding: "We want to ensure fair distribution around the UK and at least 5% will go to Wales."