Much-needed EU money going back to Brussels

Council leaders have warned that more than £730 million in vital EU cash which could help local communities bounce back from the coronavirus crisis risks being sent back to Brussels if the funding is not allocated by the government before the end of the year.

The Local Government Association said 24 per cent of England’s allocation of the European Social Fund remains unspent, and is calling on the government to urgently work with councils and combined authorities to ensure the remaining money, roughly £730 million, is allocated quickly to support the national recovery from the pandemic.

The fund, which the UK is continuing to participate in until the end of the programme, is used for supporting employment, skills and training. With unemployment expected to rise and local businesses likely to struggle to get back on their feet, the LGA says investment in employment and skills will be more important than ever in the coming months.

Councils are also concerned about the ongoing lack of detail around the government’s proposed UK Shared Prosperity Fund, which will replace EU funding. Councils and combined authorities want to work with the government to co-design the UKSPF, based around local need and the alignment towards a single pot of growth funding.

Kevin Bentley, vhairman of the LGA’s EU Exit Taskforce, said: “The government needs to make sure the remainder of this fund reaches the local communities that need it desperately following the devastating economic impact of Covid-19. Councils and combined authorities are ready to work with government to make sure that local residents and economies can reap the benefits of this funding.

“As the country looks towards how we bounce back from Covid-19, this funding is more important than ever. This is vital money which as it stands risks going unspent and returned to Brussels, when instead it can and should be invested in jobs, skills and training critical to the national recovery.”