Negotiations broke down between the Welsh and UK governments over the Shared Prosperity Fund when it became clear that cash would be diverted away from Wales’ poorest communities into more prosperous areas, we can reveal.
The UK Government has published the funding formula that will be used to distribute money to Welsh local authorities for its replacement for EU structural funds for the poorest regions of Europe. Wales receive £585 over the next three years but there is an angry row over whether that is enough to replace the money that would have been provided by the EU. See more on that here.
Instead of the money being allocated to areas that have a Gross Value Added per head (a measure of economic output) of 75% of the EU average, the funds will be distributed much more widely. The formula will see:
