**Eluned Morgan Vows to Hold UK Government Accountable on Post-EU Funding Commitments**
Wales’ First Minister, Eluned Morgan, has firmly stated her intention to ensure the UK Government upholds its promise to return control of post-EU structural funding to the Welsh Government. As the political landscape shifts following Brexit, this funding—once a vital resource for some of Wales’ most deprived areas—remains a contentious issue between Cardiff and Westminster.
The debate centres on the Shared Prosperity Fund, known from next year as the Local Growth Fund. The fund was introduced by Boris Johnson’s Conservative administration to replace the structural financial support previously delivered by the European Union to regions such as the Valleys and west Wales. Under the pre-Brexit arrangement, the Welsh Government, via the Welsh European Funding Office (WEFO), was tasked with allocating these funds. However, in the transition under the Conservatives, a decision was made—following advocacy from former Welsh Secretary Alun Cairns—for this responsibility to be shifted to local councils, bypassing the devolved government entirely.
Labour leader and UK Prime Minister Sir Keir Starmer addressed the matter directly in his 2023 speech to the Welsh Labour conference, committing to restore decision-making powers over these funds to the Welsh Government—a pledge subsequently cemented in Labour’s general election manifesto. Despite this, recent spending review papers led by Chancellor Rachel Reeves have sown confusion, as they reference ongoing collaborative oversight of the new fund between the Wales Office, the Ministry of Housing, Communities and Local Government (MHCLG), and the Welsh Government.
These documents state: “As one of the representatives for the nations, the Wales Office will work with the MHCLG to implement the new local growth fund, working in partnership with the Welsh Government. This will ensure that this funding is spent on projects that matter to the people of Wales and will drive growth across the country.” Similar language appears in passages relating to Scotland and Northern Ireland, hinting at a broader UK-level approach to the management of these funds.
Over the past week, the Welsh Government has sought urgent clarification of its role in administering the new funds. Speaking at a Senedd committee session for culture, communications, the Welsh language, sport and international relations, the First Minister faced questions about whether the spending review’s language contradicted the Prime Minister’s vow to repatriate control. Labour Member of the Senedd for Blaenau Gwent, Alun Davies, voiced concerns that the approach outlined could break the manifesto pledge to Wales.
In response, Eluned Morgan sought to dispel uncertainty: “Just to make it clear, I am not accepting what was put in there [the spending review] in the way it has been interpreted. I have had a categorical assurance from the Secretary of State for Wales that this will be decided and managed by the Welsh Government.” She added, “This was a commitment made by the Prime Minister on the Labour Party conference stage, and I have made absolutely clear that we will be holding their feet to the fire on this.”
Ms Morgan noted that she had recently reiterated these concerns in discussions with both Wales Secretary Jo Stevens and Chief Secretary to the Treasury Darren Jones, but stopped short of mentioning Angela Rayner, Secretary of State for Housing, Communities and Local Government. “I am actually more confident now,” she said, “because I have been given those reassurances, including from the First Secretary to the Treasury.”
Alun Davies MS welcomed this clarification, reflecting a shared sense of relief among Labour representatives who have called for greater devolved control. The financial aspect of the settlement may prove significant: Wales is set to receive £630 million over three years from April next year—representing 22% of the total funding pot available via the MHCLG’s Local Growth Fund. Had the funding been distributed according to the traditional Barnett Formula, the allocation for Wales would have been considerably smaller (around 5%).
A UK Government source commented, “Wales got the best deal on growth funding of any UK nation. Every penny and the overall share of Wales’ fund was protected. We are wholly committed to delivering Keir Starmer’s pledge to restore the decision-making role to the Welsh Government.”
Nevertheless, questions remain about how the Welsh Government will set up the necessary administrative structure to oversee and deliver the fund, and what its priorities will be for the investment. This new era of funding presents both an opportunity and challenge for Wales as it looks to shape its future outside the EU.
A spokesperson for the Welsh Government emphasised their determination to capitalise on this funding: “We will ensure this £630m has greater impact than the legacy Shared Prosperity Fund. We will continue to discuss the detail of this funding with the UK Government and resolve how it is used to support our economic ambitions and bring prosperity to all corners of Wales.”
As discussions continue, the spotlight remains on Westminster to honour its promises, and on Wales to deliver the long-term regeneration that these funds were originally designed to support.