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1. Welcome

Tom Smithson (TS) welcomed members and noted he would act as Interim Chair for this meeting as the Welsh Government was still in the process of appointing a new independent Chair. 

TS noted the Cabinet Secretary for Economy, Energy and Welsh Language would be joining the meeting shortly to discuss priorities for the next era of regional investment post-2025. TS added that the UK Labour Party Manifesto committed to restoring decision-making over the allocation of structural funds to ‘the representatives of Scotland, Wales and Northern Ireland’. 

TS thanked local government colleagues for their written update, which was circulated ahead of the meeting, on the progress of the UK Shared Prosperity Fund in each region. He added that there should be time during the open discussion towards the end of the meeting for members to raise any queries on these written updates.

The draft minutes from the April meeting were cleared by members for publication on the Welsh Government website.

2. Cabinet Secretary for Economy, Energy and Welsh Language

TS welcomed the Cabinet Secretary for Economy, Energy and Welsh Language to his first meeting of the Strategic Forum to provide his reflections on the last few years of post-EU funding delivery in Wales and, working with partners and the new UK Government, the opportunities and next steps for post-2025 funding.

The Cabinet Secretary thanked members of the Forum for their ongoing commitment to regional investment and their work with the Welsh Government in this area over many years.

During his remarks, the Cabinet Secretary made the following points:

  • The Framework for Regional Investment, which was co-produced, is a good foundation to build from as we consider approaches to post-2025 regional investment. The Welsh Government will continue to be guided by the views and experiences of our partners and stakeholders.
  • We need to move on quickly from the delays and chaotic management of the previous UK Government operating in a devolved area and not providing sufficient replacement EU funds which has damaged sectors. Welsh local authorities have done an excellent job in delivering funds despite the extremely difficult demands made of them.
  • With a new UK Government that is willing to work with the Welsh Government and respect devolution, there is an opportunity to streamline future funding and reduce the complexity that has emerged from a range of different ‘levelling-up’ schemes in Wales.
  • We need to reflect on lessons learned from the Shared Prosperity Fund in terms of what worked and what didn’t. Welsh Government officials work with partners to learn those lessons, including through this Forum.
  • We are looking to members of the Forum to coordinate the views of their sectors and networks by sharing positions and lessons learned. We want as wide a range of opinions and experiences as possible to inform our approach.
  • The Cabinet Secretary and the Cabinet Secretary for Housing, Local Government and Planning met with the OECD last month to discuss their recent report.
  • We will consider the findings of the OECD report as well as 20 years of lessons learned through EU programmes and our ongoing work with Corporate Joint Committees to help inform next steps.
  • All of this will inform Welsh Government cabinet discussions and our negotiations with the new UK Government on this issue. The momentum of this work will increase significantly.

In response to the Cabinet Secretary’s remarks, members made the following comments:

  • The commitment to partnership working is particularly welcome. The third sector was not engaged adequately with the Shared Prosperity Fund (SPF), which has impacted on opportunities in important areas, for example, reducing economic inactivity in Wales. Important going forward to balance the best from EU programmes and the SPF.
  • It’s been a difficult period for Universities during the transition from EU funds to the SPF. The Framework for Regional Investment was a very strong piece of work that remains valid. Furthermore, the work associated with the metro mayors in England and universities being part of this reflects the regional working principles of Wales’ Framework for Regional Investment.
  • Important to avoid a funding cliff edge as the Shared Prosperity Fund closes down as there is a significant risk of local government jobs and capacity being lost. There is also some good learning from the SPF to share.
  • Welcome the opportunity to revisit the Framework for Regional Investment as a model for future funds. Also need to learn from the mistakes of the Shared Prosperity Fund with regard to the timetable from launch to delivery, which meant only 18 months delivery for what was supposed to be a three-year scheme.
  • Lots of small businesses are currently benefiting from Shared Prosperity Fund grant schemes. An extension, for example, three months, to the Fund would be welcome.

The Cabinet Secretary made the following final points in response to the comments raised by members:

  • We will continue to make the case for flexibility in what remains of the Shared Prosperity Fund.
  • EU programmes engaged and supported a range of sectors, and they were delivered through the strength of partnership working. In contrast, the design of the SPF created obstacles to this type of partnership working, which we want to remove going forward.
  • It’s important to ensure a run-off period for the Shared Prosperity Fund and a smooth transition to any future funding programme.
  • Local autonomy and delivery have been a positive element of the Shared Prosperity Fund experience, but the balance with strategic priorities and delivery needs to be improved as we move forward with any new programme.
  • It will be important to do as much as we can together in partnership over the coming months to help shape rather than react to UK Government initiatives.

3. Open discussion

TS opened the session and asked members for any further comments or views on the future of regional investment. The following points were made:

  • Important to note that the Shared Prosperity Fund, while delivered locally, had a regional approach through the investment plans that were submitted at the outset. Need to keep an element of local delivery going forward.
  • The role of Universities in economic development is not positioned neatly within CJC structures. Need to take this into consideration.
  • Focus should be on strategic regional investment more broadly, not just the SPF, and it needs to be integrated with transport, infrastructure and R&D. The SPF years have badly disrupted that.
  • Important to be clear on the role of each stakeholder at different levels of governance and implementation.
  • The previous UK Government designed the Shared Prosperity Fund. Local government has had to make the best of it.
  • The Framework for Regional Investment remains a valid model. While structures in England, Wales, Scotland and Northern Ireland may be different, it is important to promote our similarities and emphasise what we have in common as opportunities for cross-border working.
  • Note that CJCs currently have no role in the Shared Prosperity Fund. Important to determine what decisions need to be made at each level of any new funding programme – national, regional and local, and be clear about any regional variations and what is needed, as well as who is best placed to deliver, to help drive the Welsh economy.
  • There may be scope to broaden the Forum and revisit its terms of reference to help achieve a broader outlook for economic development that is wider than replacement EU funds.
  • Consider doing some asset-mapping as part of the lessons learned exercise. Structures and partnerships are already in place so there is no need to start from scratch.
  • Important to look after existing local government staff and consider redeployment opportunities as the SPF closes and we transition to a new programme.
  • A transition period may be needed to carefully consider these points and ensure a new programme is developed which will deliver on the important priorities for Wales and the regions.

4. Any other business

TS thanked members for attending and for their contributions. He noted the intent to carry out an exercise to learn lessons from SPF and welcomed any supporting papers that organisations may want to submit to support the exercise.

No further business was raised and TS advised the next meeting would take place following the Autumn statement. 

Annex A: list of attendees

Chair

Tom Smithson, Deputy Director, Economic Strategy and Regulation, Welsh Government

Members

Higher Education: Amanda Wilkinson, Director, Universities Wales

WLGA: Tim Peppin, Director of Strategy and Sustainable Development; Lowri Gwilym, Team Manager – Europe and Regeneration

Natural Resources Wales: Rhianne Jones, Lead Specialist Advisor EU Exit and Land Management

Third Sector (Social Enterprise): Glenn Bowen, Director of Enterprise, Cwmpas
Chambers of Commerce: Paul Butterworth, President, South and Mid Wales

Third Sector Partnership:  Matt Brown, Director of Operations, WCVA
Wales Rural Network: Eirlys Lloyd, Chair

Federation of Self Employed and Small Businesses Wales: Ashley Rogers, Director – Gill and Shaw

Grahame Guilford and Company Ltd: Grahame Guilford

Future Generations Commissioner: Professor Rachel Ashworth, Dean and Head of Business School, Cardiff University

Development Bank of Wales: Rob Hunter, Head of Strategy

North Wales Partnership: Cllr Dyfrig Siencyn, Ambition North Wales

Further Education: Catherine Jenkins, Director of Employability, Gower College Swansea

Cardiff University: Kevin Morgan, Professor of Governance and Development, School of Geography and Planning

Local Government: Carwyn Jones-Evans, Ceredigion County Council;
Paul Relf, Swansea Council; Dylan Rhys Griffiths, Gwynedd Council

Welsh Government attendees

Jeremy Miles MS, Cabinet Secretary for Economy, Energy and Welsh Language

Duncan Hamer, Business and Regions – Director Operations

Geraint Green, WEFO – Head of Programme Management (European Social Fund, European Territorial Co-operation and Agile Cymru)

Alison Sandford, Regional Investment – Head of Policy and Partnership Working 

Mike Richards, Regional Investment – Communications Manager

Claire McDonald, Business and Regions – Deputy Director, Economic Policy

Sam Huckle, Social Partnerships, Employability and Fair Work – Head of Employability and Skills

Sarah Govier, Welsh Treasury – Head of Intergovernmental Relations 

Bryn Richards, Business and Regions – Head of Regional Planning

Neil Surman, Public Services and Welsh Language – Deputy Director Skills

Janet Owen Jones, Business and Regions – Head of Entrepreneurship and Business Wales (Strategy)

Owen Llewellyn Jones, Special Advisor

Nick Williams, Climate Change and Rural Affairs – Head of Regeneration North, Mid and South West Wales

Lisa James, Public Services and Welsh Language – Deputy Director, Local Government Policy Division