The announcement that Liverpool will receive £52m from the government's post-Brexit 'shared prosperity fund’ has been described as ‘salt in the wound’ with the region being ‘short-changed’.
The UK Shared Prosperity Fund, which replaces money previously awarded by the European Union, will be shared across the UK and amounts to £2.5bn over the next three years. Announcing the plans, Levelling Up secretary Michael Gove said the money will “help spread opportunity and level up the country”.
But there are concerns the Government’s new funding pot will leave areas like Liverpool worse off compared to the support received from European Union funding streams, which it is replacing post Brexit.
READ MORE: Michael Gove short-changes Liverpool in post-Brexit fund
In the previous three years, the city region has received £80m from the UK - almost £30m more than what the Government is offering over the next three. Reacting to the news of the funding, Metro Mayor Steve Rotheram said the drop in monetary support is not “what we were promised.”
He said: “When we left the European Union, the government told us that we would benefit from at least the same level of funding that the EU had provided. This is not levelling up.
“In doing so the government are shooting themselves in the foot. It will have a damaging impact on jobs, skills, communities and businesses across the Liverpool City Region – and wider detrimental impacts on UK plc.
He added: “The fact this will provide us with less certainty and will require us to get our plans signed off by central government just rubs salt in the wound. Local people should be able to make decisions about how money is spent in our area. We know the needs and wants of our communities far better than mandarins in Westminster or Whitehall ever could.”
The Metro Mayor pointed to the fact that funding will be cut by “more than a third”, something he says could have gone towards “supporting our local economy and building the fairer, stronger region we deserve.” Over the last two decades, Liverpool significantly benefited from European Union funding, in particular contributing towards the city’s Capital of Culture transformation in 2008.
Announcing the plans, Mr Gove was however confident of the funding's 'potential impact'. He said: "We have taken back control of our money from the EU and we are empowering those who know their communities best to deliver on their priorities. The UK Shared Prosperity Fund will help to unleash the creativity and talent of communities that have for too long been overlooked and undervalued.
“By targeting this funding at areas of the country that need it the most, we will help spread opportunity and level up in every part of the United Kingdom.”
The Echo has been told the allocation formula for UK Shared Prosperity Fund takes into account "local population data, and a broadly based measure of need, including factors like unemployment and income levels".
