Agenda item

To submit a report by the Head of Regulation and Economic Development.

The report of the Head of Regulation and Economic Development was presented for consideration by the Committee.

The Leader and Portfolio Member for Economic Development said that the UK Government launched the UK Shared Prosperity Fund as a replacement to the European Structural Fund programmes.  The EU Structural Fund has been a major funding source in Wales for several decades and Anglesey had always been a significant recipient of these funds which supported businesses, developing skills, increasing employability as well as capital infrastructure programmes. The UK Shared Prosperity Fund is a £2.6 billion of funding provided by UK Government for local investment across the UK between December 2022 and March 2025.  The allocation for Anglesey through the UK Shared Prosperity Fund was £16,081.937 (with £2.78m ringfenced towards Multiply).  Funding was approved and released from UK Government on an annual basis.  The priority has been to ensure that all allocated project expenditure is utilised, and meaningful benefits are achieved, for the benefit of Anglesey residents and businesses with financial support to 496 businesses, enterprises and organisations, supported 913 residents to improve their numeracy skills, supported the creation of, or safeguarded, 80 jobs on the Island and helped 361 people to secure a qualification. 

The following were points of discussion by the Committee:-

·     Questions were raised as to the next steps following the completion of the current programme in March 2025 and whether there are projects, who may have not been successful within the current funding opportunities, ready to take advantage of any funding available.  The Leader and Portfolio Member for Economic Development responded that the original timescales of the SPF Programme have been extended into 2025/2026, but it represents a significant reduction in the funds available compared with the first available funding.  The Chief Economic Development Manager said that the funding for 2025/2026 is £5m which will have a limited timescale of 1 year. It is uncertain as to the amount of funding that will be available thereafter, but discussions are being undertaken within the WLGA to ensure that Anglesey has a share of the funding that will become available. 

·     Questions were raised as to the 80 jobs created or safeguarded as regards to the SPF funding.   The Leader and Portfolio Member for Economic Development responded that this Authority took advantage of the Multipy Scheme.  This was a positive step, demonstrating the relevant Delivery Partners’ capacity to spend additional funding and to realise greater benefits for the Island. 

·     Reference was made that the projected forecast for the number of people accessing mental and physical health support leading to employment was 76, yet the actual number recorded is 0.  Questions were raised as to what the reasons behind this significant gap are.  The Chief Economic Development Manager responded that the figures received as regards to the people accessing the support is currently 46. Work will be undertaken with the partner organisations to ascertain the barriers young people are facing to the transition of working environment. 

·     Reference was made that there will be uncertainty for people whether they will continue to be in employment following the SPF funding coming to an end.  The Chief Executive responded that the SPF funding for 2025/2026 will be considerably less than previous years and difficult decisions will need to be made as to how many projects that will be supported, and some people’s contractors may not be extended. He further said that the SPF funding is also relevant to the Authority as the Council leads on some projects and employs staff into the roles within these relevant projects.    The Chief Economic Development Manager said that the funding for 2025/2026 was received late and decisions needed to be made quickly to score the projects by the Officers within the Economic Development;  decisions will be forwarded to the relevant organisations as soon as possible.  He emphasised that pressure needs to be made to ensure that details of the funding avenues for the future needs to be forthcoming to ensure that the projects continue.   The Leader expressed that considerably less grant funding has been received even though the UK Government assured that the funding would be similar to the European funding which has supported projects over the years.  He noted that the contracts of employees specified that their contracts would come to an end at the end of March 2025.  However, additional funding has been received until 2026 but is significantly lower than previously.  He noted that it is imperative that employment opportunities generated from the SPF funding enable people to be able to apply for permanent employment rather than dependent on grant funding projects. 

·     Questions were raised as to whether joint working will continue with the third sector as regards to grant funded projects.  The Chief Executive responded that due to the cost-of-living crisis and poverty it is essential that joint working continues with the third sector on a strategic, moral and financial level.  However, as the level of grant funding is significantly lower than previous years, difficult decisions will have to be made as to whom will receive the funding to ensure the successful impact of the supported projects.  The Leader emphasised that working in partnership is crucial to support projects within local communities.  He noted that the WLGA has but pressure on Welsh Government to influence UK Government to set up a source of funding following 2026 as there is currently uncertainties as to the grant funding in the future.

·     Questions were raised as to what assurances can be given that all projects will successfully meet their evaluation milestones and commitments prior to the closure process and what are the monitoring process.  The Chief Economic Development Manager responded that he was confident that all projects will be completed as they have been reporting on progress monthly. 

·     Questions were raised as to what plans are in place to implement placemaking initiatives within the next delivery period, and who will take the lead on the projects.  The Chief Economic Development Manager responded that the placemaking initiatives is separate from the SPF funding and grant funding has been secured for Amlwch and Holyhead through the Transforming Towns funding process.  He noted that the three other towns will be considered when the capacity is available, and he was willing to share the draft plans with the Members as regards to Amlwch and Holyhead projects.

·     Reference was made that the rural areas are not supported, and it seems that the investment to allow people to live and work in their communities is not forthcoming.  Questions were as to the reason as to why the Housing Strategy has not been included within the SPF funding.  The Leader responded that towns on the Island attract grant funding much easier than rural areas.  He noted that work is undertaken to improve the economic development within rural areas i.e. industrial units.  The Chief Economic Development Manager said that he will investigate the reason as to why the Housing Strategy has not been included within the SPF funding and will report back to the Elected Members.  Further comments were made that it is hoped that the grant funding in 2026/2027 and thereafter will have a vision to expand funding resource to the largest villages on the Island.  The Chief Economic Development Manager said that it is an intention to map out through the partner organisations to gauge where the SPF funding has been of value in the communities.

It was RESOLVED to:-

·       Note the successful delivery of Anglesey’s UK Shared Prosperity Fund and the positive outputs achieved between 2022 and 2025;

·       Note the implementation of Anglesey’s UK Shared Prosperity Fund in line with UK Government guidance;

·       Recognises the on-going role of the Council in managing the delivery of the funding on the Island, as well as supporting local delivery partners;

·       Request further updates from Officers in respect of Shared Prosperity Fund delivery during 2025/2026.

ACTION : As noted above.