Agenda item

That Cyngor Gwynedd continues to act as the lead local authority for the Shared Prosperity Fund in north Wales until the end of the programme (30 September 2026) and completes its administration (01 January 2027).

That the Gwynedd Shared Prosperity Fund Panel continues until the revised end date of the Fund; with the Economy and Community Cabinet Member, the Finance Cabinet Member, and the Corporate Services and Legal Cabinet Member together with the Chief Executive, Head of Economy and Community, Head of Finance and the Head of Legal Services (or their representatives) as members.

That Cyngor Gwynedd agrees to act as the lead local authority for north Wales on behalf of the UK Local Growth Fund in Wales for the first year of the programme (2026/27).

That Cyngor Gwynedd agrees to continue the regional governance arrangements of the Shared Prosperity Fund for the purposes of the Local Growth Fund for the first year (2026/27), by submitting a plan outlining the intention to the Welsh Government.

The Head of Economy and Community – in consultation with the Head of Finance, Head of Legal Services and Chief Executive subject to 1.6 below was authorised to agree and complete the agreements with the government(s) for the purposes of carrying out the lead authority function.

The Head of Economy and Community Department was authorised - in consultation with the Head of Finance Department and the Head of Legal Services and the Chief Executive – to establish inter-authority legal agreements and funding conditions with the other north Wales authorities to protect Cyngor Gwynedd's interests.

That Cyngor Gwynedd agrees to continue the local governance arrangements for the purposes of the Local Growth Fund in Gwynedd as outlined in the report.

The report was submitted by Cllr R. Medwyn Hughes.

DECISION

That Cyngor Gwynedd continues to act as the lead local authority for the Shared
Prosperity Fund in north Wales until the end of the programme (30 September
2026) and completes its administration (01 January 2027).

That the Gwynedd Shared Prosperity Fund Panel continues until the revised end
date of the Fund; with the Economy and Community Cabinet Member, the Finance
Cabinet Member, and the Corporate Services and Legal Cabinet Member together
with the Chief Executive, Head of Economy and Community, Head of Finance and
the Head of Legal Services (or their representatives) as members.

That Cyngor Gwynedd agrees to act as the lead local authority for north Wales on
behalf of the UK Local Growth Fund in Wales for the first year of the programme
(2026/27).

That Cyngor Gwynedd agrees to continue the regional governance arrangements
of the Shared Prosperity Fund for the purposes of the Local Growth Fund for the
first year (2026/27), by submitting a plan outlining the intention to the Welsh
Government.

The Head of Economy and Community – in consultation with the Head of Finance, Head of Legal Service and Chief Executive subject to 1.6 below was authorised to agree and complete the agreements with the government(s) for the purposes of carrying out the lead authority function.

The Head of Economy and Community Department was authorised - in consultation with the Head of Finance Department and the Head of Legal Services and the Chief Executive – to establish inter-authority legal agreements and funding conditions with the other North Wales authorities to protect Cyngor Gwynedd's interests.

That Cyngor Gwynedd agrees to continue the local governance arrangements for
the purposes of the Local Growth Fund in Gwynedd as outlined in the report.

DISCUSSION

Attention was drawn to the two matters at hand, namely to ensure arrangements to bring the Shared Prosperity Fund (SPF) to an end, and to establish new arrangements for the first year of the Local Growth Fund that would replace it.

It was reported that the UK Government had extended the period of the Shared Prosperity Fund for 6 months and Cyngor Gwynedd was required to continue as the lead local authority for the programme for the duration of this extension. Its successor, the Local Growth Fund, would become operational from 1 April 2026.

It was mentioned that Gwynedd had received £8.19 million through the Shared Prosperity Fund this year. It was stated that the UK Government had announced that they would allow SPF-funded activity to continue up to 30 September 2026, but without any additional funding.

It was identified that less money would be received under the Local Growth Fund. Attention was then drawn to the fact that 70% of the funding from the Local Growth Fund would come in the form of capital, and 30% of it would come in the form of revenue. It was highlighted that this was very different to the current procedure and that it was likely to have a major influence, considering that there was less money as well.

Observations arising from the discussion:

·       Clarity was sought about the impact of receiving a higher percentage of money in the form of capital, and a lower percentage in the form of revenue. It was explained that this was a shift away from projects which provided support for people and businesses, offering more money for construction. It was highlighted that this meant a substantial change in the emphasis of the activities that had been happening through the Shared Prosperity Fund. It was identified that jobs within the Council and across north Wales were funded through Shared Prosperity Fund money, and it was noted that it would be difficult to continue with all of these posts as a result of less revenue funding.

·       Reference was made to the fact that current projects now had an extra 6 months to wind-down and members questioned what would happen if these projects could not be completed, and how they would be supported. In response, it was acknowledged that several of the projects in Gwynedd had been planned to be concluded by the end of the financial year. It was added that the extra time would be useful for several projects to complete their spending or to gather evidence of the outputs and what had been achieved. It was anticipated that approximately half of the projects within the county would take advantage of this extra time, but there were no concerns in terms of failing to bring the projects to a close. It was disclosed that this extra time gave an opportunity to forward plan, prioritise and restructure some activities to correspond with the new situation. 

·       It was explained that capital projects needed time to be prepared, which made it challenging to spend an amount in one financial year. Frustration was expressed that the funding was coming to the Welsh Government over three years, but the Council was restricted to year-one funding only at this point. It was disclosed that the challenge anticipated would be how to prioritise projects, knowing that there would be less money, and ensuring that those projects made a difference under the criteria set by the Government. It was highlighted that there were new priorities as a result of the new programme, which would make it difficult to ensure the continuation of some of the activities of the Shared Prosperity Fund in the new programme.

·       Reassurance was given that further reports would be submitted on the proposed projects. It was reiterated that these would not be completely new projects as a result of the tight time-frame, but there was a desire to continue with Welsh Government discussions in an attempt to enable some projects to be held over years two and three.

·       An explanation was provided that Cyngor Gwynedd currently acted as host authority for the Shared Prosperity Fund and that it would continue to do so for the programme's period of extension. In addition, it was noted that the Council would lead on the Local Growth Fund during its first transitional year, and that the intention after that would be to transfer it to the North Wales Corporate Joint Committee for the programme's second and third year. It was noted that it would be a matter for the Corporate Joint Committee to decide whether to create a county fund or keep the money regional.