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Chamber and committees

Finance and Public Administration Committee


Replacing EU Structural Funds in Scotland

Background

The Committee has started to scrutinise what funding will replace EU Structural Funds in Scotland.

When the United Kingdom (UK) was part of the European Union (EU), the UK received funding to reduce economic inequality from EU structural funds (EUSF).

Under the EU’s 2014-2020 budget, Scotland was allocated up to €944 million in structural funding.

During this time, the Scottish Government played a key role in directing where funding in Scotland was spent.  Under EU rules, EU funds needed to be matched by equal money from the Scottish budget.

Replacing EU funds, post-Brexit

After leaving the EU, the UK Government has said it will:

  • at least match these EU funds “through the new UK Shared Prosperity Fund on average reaching around £1.5 billion a year” starting from April 2022;
  • make available across the UK between March 2020 and March 2021, funding of £220 million in a Community Renewal Fund;
  • provide £4 billion for a “levelling up” fund for England with £800 million set aside for Scotland, Wales and Northern Ireland.

How is this funding provided?

Money from the Levelling up Fund is now available to bid for across the UK. In Scotland, it is Local Authorities that can bid for and lead on delivery of this fund.

In Scotland, it is also Local Authorities that can bid for funding from the Community Renewal Fund.

These new funds represent a potentially significant amount of money to be spent in Scotland, that is not provided through the usual Scottish Government budget process.

Views from Scottish Local Authorities

The Finance and Public Administration Committee has therefore agreed to start its work by seeking views from Scottish Local Authorities and the Scottish Local Authorities’ Economic Development (SLAED) Group on these funds.


Correspondence

The Convener wrote to Local Authority Chief Executives and the Scottish Local Authorities Economic Development Group (SLAED) on 4 October 2021 to seek views:

Letter from the Convener to Local Authority Chief Executives of 4 October 2021 (64KB pdf, posted 11 October 2021)

Letter from the Convener to the Chair of the Scottish Local Authorities Economic Development Group (SLAED) of 4 October 2021 (65KB pdf, posted 11 October 2021)


The Convener wrote to the Rt Hon Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities on 15 October 2021 with an invitation to give evidence to the Committee on 16 November 2021 on the replacement of EU structural funds in Scotland:

Letter from the Convener to the Secretary of State for Levelling Up, Housing and Communities of 15 October 2021 (98KB pdf, posted 20 October 2021)


The Convener wrote to the Rt Hon Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities on 8 December 2021 in relation to giving evidence to the Committee and on the themes arising from local authority responses:

Letter from the Convener to the Secretary of State for Levelling Up, Housing and Communities of 8 December 2021 (137KB pdf, posted 8 December 2021)

The Rt Hon Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities wrote to the Convener on 10 February 2022 in relation to giving evidence to the Committee:

Letter from the Secretary of State for Levelling Up, Housing and Communities to the Convener of 10 February 2022

The Rt Hon Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations wrote to the Convener on 21 February 2022 with a response to the Convener's letter of 8 December 2021:

Letter from the Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations to the Convener of 21 February 2021 (81KB pdf, posted 22 February 2022)


Following the evidence session on 24 February 2022, the Convener wrote to the Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations seeking additional information:

Letter from the Convener to the Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations of 30 March 2022 (95KB pdf, posted 30 March 2022)

The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations replied to the Convener's letter on 6 May 2022:

Letter from the Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations of 6 May 2022 (119KB pdf, posted 6 May 2022)


Written Submissions

The following responses from local authorities and organisations to the above correspondence have been received:

Written Submission from Angus Council (87KB pdf, posted 12 November 2021)

Written Submission from Argyll and Bute Council (78KB pdf, posted 12 November 2021)

Written Submission from Clackmannanshire Council (90KB pdf, received 23 November 2021, posted 24 November 2021)

Written Submission from Comhairle nan Eilean Siar (101KB pdf, posted 12 November 2021)

Written Submission from COSLA (80KB pdf, posted 12 November 2021)

Written Submission from East Ayrshire Council (68KB pdf, posted 12 November 2021)

Written Submission from East Lothian Council (79KB pdf, posted 12 November 2021)

Written Submission from Falkirk Council (89KB pdf, posted 12 November 2021)

Written Submission from Fife Council (94KB pdf, posted 12 November 2021)

Written Submission from Glasgow City Council (81KB pdf, posted 12 November 2021)

Written Submission from Highland Council (82KB pdf, posted 12 November 2021)

Written Submission from North Lanarkshire Council (69KB pdf, posted 12 November 2021)

Written Submission from Renfrewshire Council (130KB pdf, posted 12 November 2021)

Written Submission from Scottish Local Authorities Economic Development Group (SLAED) (84KB pdf, posted 12 November 2021)

Written Submission from Shetland Islands Council (70KB pdf, posted 12 November 2021)

Written Submission from South Lanarkshire Council (88KB pdf, posted 12 November 2021)

Written Submission from Stirling Council (34KB pdf, posted 15 November 2021)

Written Submission from West Lothian Council (97KB pdf, posted 12 November 2021)


SPICe Summary of Written Submissions

The Scottish Parliament Information Centre (SPICe) has produced a summary of the written submissions received:

SPICe Summary of Written Submissions (269KB pdf, posted 7 December 2021)

Note: We aim to make all of the information we publish fully accessible. However, when documents are provided by external organisations this is not always possible. If you need the document provided in an alternative format please contact the Clerk to the Committee. Further information is available on our accessibility statement.


Oral Evidence

The Committee took evidence on the following dates:

Thursday 24 February 2022

The Committee took evidence from:

Rt Hon Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations, UK Government.

Committee papers

Papers for meeting on 24 February 2022 (209KB pdf, posted 22 February 2022)

Official Report (substantially verbatim transcript)

Official Report (substantially verbatim transcript) of meeting on 24 February 2022 (685KB pdf, posted 25 February 2022)


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