Charity sector bodies have said the latest apparent delay in the government’s distribution of EU replacement funding could be detrimental to local communities and vulnerable people.
This month’s autumn statement appears to have removed a previously-pledged first £400m payment from the UK Shared Prosperity Fund (UKSPF) to local authorities, which had been scheduled for this financial year.
The statement instead lists a £600m payment planned for 2023-24 as the first to be made from the fund.
NCVO, the Charity Finance Group (CFG) and New Philanthropy Capital (NPC) all expressed concern over the latest apparent delay and urged the government to distribute funding quickly.
Meanwhile, a spokesperson for the Department for Levelling up, Housing and Communities (DLUHC) told Civil Society News: “DLUHC is finalising the validation of investment plans and will be notifying local authorities of the outcome in due course, with payments to follow.”
NCVO: ‘Damaging disruption’
Chris Walker, NCVO’s policy and public affairs and manager, said the membership body had “repeatedly urged” the government to start working on the UKSPF early to address “inevitable challenges” it will have faced setting it up.
“Government must make it a priority to get this money out of the door, but increasingly it looks like we won’t see this in this financial year.
“Although funding has been committed, if there are more delays, we could see damaging disruption in communities.”
NPC: ‘Government making it really hard for charities’
Angela Kail, director of consulting at NPC, said continued delays to EU replacement funding are likely to hit marginalised people the hardest.
She said: “The government is making it really hard for charities delivering skills and employment programmes in England to access funding. We’re facing a cliff edge where support could suddenly end.
“The continued delays will hit the most marginalised people in the least well-off areas, which could make it harder for the government to deliver the levelling up agenda and for charities to continue to support those most in need.”
CFG: ‘Great uncertainty remains’
Richard Sagar, head of policy at CFG, said he was “surprised” that the £400m of UKSPF funding previously pledged for 2022-23 was omitted from the autumn statement’s updated spending plans.
“There remains great uncertainty about when the funds will be allocated and, with every passing day, the time window in which the funds can distributed and invested narrows.
“This means that potential recipients, including charitable organisations, will have less time to plan. In turn, this could reduce impact.
“So that the funds can make the greatest possible difference to the greatest number of communities and people, they must be allocated without any further delay.
“And any government system that is established to evaluate the impact of the UKSPF should not be so burdensome or complex as to hold up that much-needed investment.”
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