What is it?
The UK Shared Prosperity Fund is the UK Government’s proposed long-term replacement of EU Structural and Investment Funds and a key part of the government’s levelling-up agenda across the UK. This new Fund, intended to be launched in 2022, will operate throughout the whole of the UK and the government has committed to at least matching EU receipts through it, on average reaching around £1.5bn a year.
However, investment from EU Structural Funds will continue to be spent by local areas until 2023. To bridge the gap between now and 2022, however, the government has announced the UK Community Renewal Fund, an additional £220m of investment.
The UK Community Renewal Fund will help inform the design of the UK Shared Prosperity through funding of one-year pilots, but the funds are distinct with regard to design, eligibility and duration. Successful UK Community Renewal Fund bids will be for 2021-22 only.
What does it mean for Northern Ireland?
Between 2014 and 2020, Northern Ireland received around €3.5bn from the EU in the form of EU Structural Funds and the Common Agricultural Policy. These included programmes like the Investment for Growth and Jobs; the European Social Fund; PEACE IV; and INTERREG VA.
Given its importance to the NI economy, there has been considerable concern about the loss of European funding. Invest NI, for example, typically received around £100m a year from EU sources and have warned about the substantial loss to their coffers. This could result in a scaling-back of the services they can provide to businesses. There has also been a reported lack of engagement on the Fund. A formal consultation on the Prosperity Fund was promised in November 2018 but has still not taken place.
An initial £11m will be allocated to NI. The government will accept bids from a range of local applicants, including but not limited to universities, voluntary and community sector organisations, and umbrella business groups.
Projects and applications will be awarded on their plans to promote investment in skills; investment for local business; investment in communities and place; and supporting people into employment. These will include work-based training, upskilling and retraining, promoting digital skills, supporting entrepreneurs, encouraging decarbonisation, promoting rural connectivity, and improving green spaces.
Timelines and applications
The UK Government will oversee a project competition directly. Bids should be submitted by applicants to the Ministry of Housing, Communities and Local Government by noon on Friday 18 June 2021 to UKCommunityRenewalFund@communities.gov.uk
Throughout July, the government will assess bids. It will then announce successful projects for the UK Community Renewal Fund from late July onwards. The first tranche of funding will then be made available. In November/December 2021, mid-point monitoring reviews of projects will take place before the Community Renewal Fun finishes at the end of March 2021. The second tranche of funding will be paid some time in Q1 of 2022.
While there is no limit to the funding you can apply for as part of the £11m fund, applicants should note that this is a competitive process, and the UK government will be looking to select a portfolio of different size projects, covering a range of themes and geographies, subject to the volume and quality of proposals received.